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HOUSTON - Far East Energy Corporation (OTC Bulletin Board: FEEC) announced the
formation of a strategic alliance with Arrow Energy International Pte Ltd.
(”Arrow”), the Singapore-based international arm of Arrow Energy Ltd., a
large Australian coalbed methane (”CBM”) producer. As part of the strategic
alliance, under a farm-out agreement, 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 (”PSC”) to
develop CBM resources in the Shanxi province of China. The farm-out agreement
is subject to certain conditions precedent, including approval by appropriate
Chinese authorities. Arrow will become the operator under the Qinnan PSC and
fund all exploration costs during the exploration period, including Far
East’s remaining 24.75% participating interest, until Arrow has incurred up
to US $30.0 million of total spending on exploration. If the Chinese
authorities ultimately approve an Overall Development Plan (”ODP”) for
development of all, or a portion of, the block, Arrow will pay Far East a
bonus of US $8 million.
HOUSTON - Endeavour International Corporation (NYSE-Alt: END) (LSE: ENDV) today
reported net income to common stockholders for 2008 increased to US$45.7
million or US$0.32 per diluted share as compared to a loss of US$60.3 million
or US$0.49 per diluted share in 2007. Revenues in 2008 increased more than 47
percent to US$260.4 million from US$176.1 million in 2007. The company
reported adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA) of US$176.5 million from US$124.1 million in 2007.
Discretionary cash flow for the year was US$120.8 million.
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