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Far East Energy Corp
EnerCom's The Oil & Services Conference X
| Bruce N. Huff | Page 4 of 11 |
December 09, 2016
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Copyright 251 2011 Far East Energy Corp., All rights reserved. Beneficiary of CHINA222S ECONOMIC GROWTH/robust energy demand 226 Gas demand far exceeds supply with demand expected to triple over next 10 years. PRC focusing on CBM as desirable alternative to LNG imports Far East Energy222s blocks have enormous gas - in - place, and discovery of HIGH PERMEABILITY in Shouyang makes acreage unique in China and potentially world class 226 Netherland Sewell and ARI have verified high gas content/high permeability and project high production rates 226 Shouyang Block could support 4,000 to 5,000 vertical wells on 80- acre spacing SALES AGREEMENT WITH PIPELINE PROVIDES CAPACITY to move large volumes which is ESSENTIAL FOR LARGE - SCALE DEVELOPMENT. Believed to be first of its kind for foreign operators. At $6.45 to $7.34/Mcf and assuming ARI projected production levels, economics are compelling. Second competing pipeline to Shouyang is now completed, creating likely competition and potentially adding up to 50 MMcf/d of off - take capacity (Total possible off- take of 90 MMcf/d from both pipelines) Critical desorption pressure (CDP) reached in portions of the Shouyang 1 - H pilot area. At stage where high permeability reservoirs often begin to exhibit significant production increases Multi - year drilling program planning 226 ramping up to an annual pace of 200 wells per year and up to 500 wells per year in outer years 4 Investment Highlights (Trades on OTC:BB as FEEC)