Far East Energy Corp. (OTC:FEEC) had yesterday the highest trading volume for the past six months and the share price jumped out f the trading range. The company filed its latest quarter report on Monday and announced important news yesterday afternoon. 
FEEC closed yesterday’s session only with a 2.56% increase in the share price at $0.20, though during the day FEEC reached $0.23. Trading volume was over 5.1 million shares, which is nearly 11 times the average for the past three months and the heaviest trading volume for the past six months. Thus, it looks like FEEC downtrend has been stopped and the next resistance is at $0.24.
The news that came out yesterday was that FEEC had signed a Modification Agreement with China United Coal Bed Methane Corporation (CUCBM) that extends the exploration period of the Shouyang Block Production Sharing Contract. Now the Ministry of Commerce of People’s Republic of China has to give formal approval for the modified agreement. This expansion should be important for the future of operations of FEEC, thus the positive reaction on the market.
The latest 10-Q of FEEC has not been that optimistic, however. It was field after market close on Monday this week and showed that the company’s cash position had only $12.6 million at the end of September, while the current liabilities were almost $20 million. The working capital deficit has thus become even larger than at the end of last year as the initial revenues from gas sales were very insubstantial, which means the company has further to rely on proceeds from the sale of shares of its common stock.
