Far East Energy Touts Spudding of 14th Well in 2013

Far East Energy Corporation announced that appraisal well SYS03 has reached total depth; preliminary gas content has been determined for the SYE06 appraisal well; and, the 108D, an additional production well has spud, bringing to 14 the number of wells spudded thus far in 2013.

The focus for the company remains the drilling and well-fracing program that management detailed in its conference call held April 18, and which was discussed further in its operations update press release of May 6.

As part of the company's continuing appraisal well program, the SYS03, which is located in the east to southeast portion of the Shouyang Block, completed drilling to a total depth of 1,471 meters (or 4,826 feet) and penetrated the #15 coal seam revealing a total coal seam thickness of 3.77 meters (or approximately 12.4 feet). The coal was cored in its entirety and seven samples have been collected for desorption testing, which will allow for an assessment of gas content. Wire-line logging and open-hole testing will shortly be completed with estimates of permeability to follow.

The SYS03 well is a good control point between the P18 and SYS05 wells, verifying good continuity and stability of the targeted #15 coal seam. This encouraging result from the SYS03 greatly enhances confidence in the potential of the east and southeast portions of the Shouyang Block.

Meanwhile, results from the testing of core samples from the SYE06 appraisal well indicate an initial gas content of 592 standard cubic feet per ton (scf/t) or 16.76 cubic meters per ton (m3/t) in the #15 coal seam and 383 scf/t or 10.84 m3/t in the #9 coal seam.  This well is approximately 5 kilometers due east of the P18 appraisal well, and continues to confirm high gas content across virtually all of the Shouyang Block.

CEO Michael McElwrath said, "I am very pleased with the progress we have made this year on the Shouyang Block. As previously announced, our drilling contractors are in the process of mobilizing up to twenty-five rigs dedicated to the Shouyang Block and we are in final preparations for the kickoff of the frac program, with 10 wells now awaiting fracking. The operations team in China is wholly focused on delivery of the Company's 2013 drilling program, and we are encouraged by the results of yet another appraisal well, the SYE06, that affirms high gas content in our targeted coal seams across an ever-expanding area."

Gas sales for Q1 2013 were 66.9 MMcf, an increase of 40% over the same period in 2012.  Average gas price for Q1 2013 was $6.47/Mcf, inclusive of the various state and provincial subsidies and VAT refunds. This compares to an average of $6.45/Mcf in Q1 2012.

Due to increased demand for power in the vicinity of our 1H Pilot Area, the electric grid in that area is being upgraded. This increased demand for electricity is indicative of the rapid growth of energy demand in the region, for manufacturing facilities, chemical plants, and for the gas-fired power generation facility and LNG facilities being built adjacent to our 1H Pilot Area. As a result of this ongoing upgrade, since March 2013, the company has been experiencing intermittent power supply interruptions to its compressors in the Shouyang Block, as the power grid is being upgraded. In order to lessen the impact of these interruptions, the company's field personnel are in the process of procuring and installing company-owned gas-fired generators to ensure power continuity at its sales point.

As announced on January 16, 2013, the company completed a $60 million private debt placement during the first quarter, which funds a full production and appraisal well program through 2013.

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Gran Tierra Touts Record Production in Colombia

Gran Tierra Energy Inc., a company focused on oil exploration and production in South America, Wednesday provided updates for its production and exploration drilling in Colombia, Peru and Brazil.

"Gran Tierra Energy is pleased to start the year with record levels of production as we continue to successfully mitigate transportation disruptions in Colombia," commented Dana Coffield, president and Chief Executive Officer of Gran Tierra Energy. "Operationally, we believe the northern boundary of the Moqueta field has now been successfully delineated with the Moqueta-9 appraisal well. The balance of this year will focus on increasing water injection for pressure support and increasing production capacity from the field.  Once permits are in place, we can then direct our attention to appraising the eastern flank of the Moqueta structure, which remains undrilled. In Peru, the evaluation of our Bretaña Norte oil discovery continues, with initial testing of our well extension expected in the coming month, preliminary field development planning initiated, and long term testing expected to begin within a year. Our exploration program in the onshore Recôncavo Basin in Brazil, testing a new play with horizontal drilling and multi-stage fracture stimulation, is ongoing with results expected mid-year," concluded Coffield.

Average daily consolidated light and medium crude oil and natural gas production net after royalty (NAR) before inventory adjustments for the three months ended March 31, increased 21 percent to approximately 21,860 barrels of oil equivalent per day (boepd) NAR compared with 18,148 boepd NAR for the corresponding period in 2012. Approximately 97 percent was oil and natural gas liquids. First quarter production reflects increased production in all countries in which we are producing with the largest contribution to the increase from the Costayaco, Moqueta, and Surubi oil discoveries. This increase was partially offset by approximately 44 days of oil delivery restrictions due to disruptions in the Ecopetrol-operated Trans-Andean oil pipeline (the "OTA pipeline") in Colombia . Gran Tierra Energy continued production while the OTA pipeline was down, selling oil through an alternative pipeline and trucking and storing excess oil.

Average daily Colombian production of light and medium crude oil and natural gas for the three months ended March 31, 2013 increased 18 percent to approximately 17,850 boepd NAR before inventory adjustments, compared with 15,163 boepd NAR before inventory adjustments for the comparable period in 2012. The production is primarily from the Costayaco and Moqueta fields in the Chaza Block in which Gran Tierra Energy has a 100 percent working interest.

Additionally, preliminary indications show approximately 139,800 barrels NAR net liquidation of inventory during the quarter.  Inventory volumes will be finalized near the end of April 2013 and, as such, this figure is subject to change.

In Colombia, the Moqueta-9D appraisal well was spud on Jan. 20 to test the northwest extent of the Moqueta field. It discovered hydrocarbons in a different fault block, separate from the main Moqueta oil accumulation. The T-Sandstone tested gas and the combined Caballos and U-Sandstone formations tested oil and water. Further isolation testing on the Caballos and U-Sandstone formations will be conducted to define their hydrocarbon potential. These results, integrated with seismic and other wells drilled to date, indicate the well has defined the northern margin of the main Moqueta oil accumulation. The down-dip extent of the oil column to the west, south and east, and the lateral extent of the structure to the east, have not yet been defined by drilling, with this additional resource potential to be defined with our ongoing drilling campaign.

The Moqueta-10 well has begun drilling. This well will be used as a water injection well to assist with pressure support in the Moqueta field to support production growth from existing and future planned production wells. This well is being drilled to the far western flank of the field, and may provide additional information on the down-dip extent of the oil column in the primary reservoirs in the main block, which has not yet been determined. This well will be followed by Moqueta-11, which is planned to be a production well.

Gran Tierra Energy has initiated drilling of the horizontal side-track extension of the Bretaña Norte 95-2-1XD oil discovery well. Casing has been set at the top of the Vivian reservoir, where very high quality sands with very good oil shows were encountered, and the drilling of a 500 meter horizontal leg has been initiated. Upon completion, a short test will be conducted. Plans are ongoing to initiate long-term testing from this horizontal well, with production to be initiated within a year. In addition, a Preliminary Front End Engineering Design has been initiated for the Bretaña Norte field development to support reserves booking, with results expected before year-end.

Gran Tierra Energy's horizontal multi-stage fracture stimulation exploration drilling program in the Recôncavo Basin onshore Brazil is ongoing, with results of the program expected mid-year.

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McMoRan Touts 'Sizable Reserves' at Sub-Salt, Ultra-Deep Trend

McMoRan Exploration Co. reported Wednesday that independent reserve engineers engaged for the sole account of McMoRan estimated proved, probable and possible oil and gas reserves of 546.7 billion cubic feet equivalent (Bcfe) gross (141.7 Bcfe net to McMoRan, including 12.9 Bcfe of net proved reserves) associated with interim results from the sands encountered above 24,000 feet in the Lineham Creek ultra-deep exploratory well located onshore South Louisiana. These are the first reserves to be booked in the sub-salt, ultra-deep trend. The well is currently drilling below 27,600 feet to evaluate the deeper primary objectives and has a proposed total depth of 29,000 feet. Development plans will be determined following completion of drilling and evaluation of the deeper objectives.

Co-Chairman, CEO and President of McMoRan James R. Moffett said, "These are the first of what we hope will be sizable reserves from the sub-salt, ultra deep trend onshore and in the shallow waters of the Gulf of Mexico. Indications of hydrocarbons shallower than 24,000 feet have positive implications for additional targets on trend within our portfolio. We look forward to results from ongoing drilling activities on the Lineham Creek structure and from the onshore Lomond North exploratory prospect currently being drilled."

Lineham Creek is located onshore in Cameron Parish, Louisiana. Chevron U.S.A. Inc., as operator of the well, holds a 50 percent working interest. McMoRan is participating for a 36 percent working interest. Other working interest owners include Energy XXI (9.0%) and W. A. "Tex" Moncrief Jr. (5.0%).

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