Far East Energy Corporation Leading the way in high-perm China CBM January 2014
Shouyang leading the way in high-perm China CBM Excellent way to play the opportunity presented by Chinas strong gas demand and rising price profile Large, high permeability/high gas content block; strong proven reserves; high gas…
Shouyang Block Location Map Qinshui Basin in Coal-Rich Shanxi Province FEEC operates 1,168 km2 (288,570 ac) 2
Favorable Shouyang PSC Shouyang Production Sharing Contract Area Taiyuan PSC area is approximately 1203 km2 (297,242 acres), expiring in 2032 with approximately 1168 km2 (288,570 acres) operated by Far East Energy (one of the…
SEC and PRMS Reserve Reports Prepared by RISC as of 12/31/2012 SEC Reserve Report 12/31/2012 PRMS Reserve Report 12/31/2012 SEC Net Reserves Bcf (Bcm) PRMS Net Reserves Bcf (Bcm) SEC Total Proved (1P) 51.3 (1.5) PRMS Total Proved (1P)…
SY-P7 1H Pilot Area Perm: 140 mD Perm: 80-100 mD Gas Content: 429 scf/ton Average Depth: Approx 600 m Approx Depth: 540 m SY-P9 Average Gas Content: 400-600 scf/ton Gas Content: 555 scf/ton Average Thickness: 3-4.5 m Approx Depth:…
High Perm Project 6
High Permeability Confirmed by CBM Experts Resource Investment Strategy Consultants (RISC) (Most recently, April 2013) (Report on YE 2012 Reserves considered all wells completed through 12/31/2012) RISC has participated in all of the CBM…
High Permeability Confirmed by CBM Experts Ancell Energy Consulting, Inc. (2012) I have always believed that the most accurate reservoir permeability can be determined during the single phase flow period because it eliminates many…
High Permeability Yields Superior Economics Coal reservoirs with high perm have a greater propensity for producing at higher levels relative to low permeability seams Higher perm allows wells to maintain production for longer periods…
Resource Comparisons Technical data suggests that the companys Shouyang acreage compares very well to premier U.S. CBM plays Note: Actual results are likely to vary from the following preliminary estimates, which are based on various…
Infrastructure and Gas Pricing 11
First Pipeline Contract for a Foreign CBM Operator in China Current wellhead price 20 year gas sales including current subsidies is 1.95 Ability to renegotiate contract with Shanxi Rmb/m3, which could Favorable take-or- contract for…
Pipeline Off-Take and Potential Additional Capacity View from hill - LNG facility Current/Potential Off-Take Capacity (Approximations) and power plant construction Million Cubic Feet Per Day Market (MMcf/d)/ (MMcm/d) Current…
2013 Drilling Program Highlights 14
2013 Drilling Program Complete Field Report as of 12/31/2013 GATHERING SYSTEM COMPLETED PEAK RIGS SPUD IN 2013 EXPANSION IN 2013 IN FIELD in 2013 74 wells 56 95 wells 31 rigs now connected 47 production 47 production Up from 54…
Increase Production, Gas Sales, Revenues 16
Appraisal Wells Drilled 17
Contacts Website www.fareastenergy.com Investor Relations Contacts Jennifer H. Whitley CFO David Nahmias Investor Relations Huw Williams Investor Relations, Asia investorrelationsfareastenergy.com + 1 281 606 1600 Corporate…
Appendix 19
A Critical Mass of Wells is Necessary to Dewater and Achieve Significant Production Increases* Virtually all world-class CBM fields Black Warrior Basin (Alabama Brookwood) 1977 - first well drilled have high permeability 1982 first gas…
High Perm Development Marathon Case Study Marathon drilled 100+ wells in 15 months before appreciable gas production. After sufficient dewatering had occurred, production began to climb at a rate of 1 million cubic feet (28,320 m3) per…
Measured Pace of Drilling Modest number of wells in first 6 years; 65 wells drilled and completed through 12/31/2012 Only 21 wells drilled from 6/2004 to 6/2009 Only 45 wells will have been dewatering or producing gas for more than…
Overview of Chinese Gas Market Energy demand continues upswing, while gas increases in importance China is the worlds largest China Estimated Gas Resources China CBM Incentives consumer of energy, and its By type, 2010 Specifically…
Increasing Focus on Unconventional Gas More stringent coal standards may create an opportunity for the gas sector, with stricter environmental requirements and limits on coal imports potentially driving up domestic prices and reducing…
Shanxi Province Pipelines (also Connected to Shaanjing II Pipeline to Beijing) 25
Strong & Growing Local and Regional Market Far East Energy sales facility on left Third parties building industrial park w LNG facility and 120 MW gas-fired power plant Map not to scale and city, village locations are…
Highly Experienced Management Team 35+ years of experience Michael R. McElwrath Former U.S. Assistant Secretary of Energy under the elder President Bush (41st president) during period of highest CBM growth in United States;…
Board of Directors Chairman, retired U.S. Department of Energy Director, Office of Natural Gas Dr. Donald A. Juckett Director, DC Office of American Association of Petroleum Geologists Established U.S.- China Oil & Gas Industry Forum…
Cautionary Statements Additional Information Regarding Estimates of Reserves and Resources The estimates in the RISC SEC reserve report as of December 31, 2012 were prepared in accordance with the definitions and regulations of the U.S.…
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