Far East Energy Corp. (FEEC.OB) Announces Strategic Relationship to Develop CBM Resources
Today, Far East Energy Corporation announced that it has formed a strategic alliance with Arrow Energy International Pte Ltd., the Singapore-based international arm of Arrow Energy Ltd., a large Australian coalbed methane (CBM) producer. As agreed, Arrow will pay Far East US $8 million in cash, and Far East will assign to Arrow a 75.25% share of Far East's participating interest in the Qinnan Production Sharing Contract to develop CBM resources in the Shanxi province of China. Arrow will become the operator and fund all exploration costs during the exploration period, including Far East's remaining 24.75% participating interest, until Arrow…