Far East Energy Corporation (OTC: FEEC) increased 10.26% to $0.215 in the morning hours after the company announced the signing of a Modification Agreement extending the exploration period of its Shouyang Block Production Sharing Contract.
The Modification Agreement signed by Far East Energy Bermuda and China United Coal Bed Methane Corporation (CUCBM) will now be forwarded to the Ministry of Commerce (MofCom) of the People’s Republic of China (PRC) for formal approval.
Under the terms of the Modification Agreement, when final MofCom approval is received, Far East will relinquish approximately 306.5 square kilometers (approximately 75,737.80 acres) of the Shouyang Block, leaving a balance of approximately 1656.5 square kilometers (approximately 411,554 acres), or 84% of the original acreage, still covered by the Shouyang Production Sharing Contract. Portions of the acreage to be relinquished are considered to be marginal or non-prospective.
The stock closed 2.56% higher to $0.204.
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