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Business, Basis Of Presentation And Significant Accounting Policies
9 Months Ended
Sep. 30, 2012
Business, Basis Of Presentation And Significant Accounting Policies [Abstract]  
Business, Basis Of Presentation And Significant Accounting Policies

1.  Business, Basis of Presentation and Significant Accounting Policies

 

Business.  We were incorporated in the state of Nevada on February 4, 2000, and on January 10, 2002, we changed our name to Far East Energy Corporation (“FEEC”).  The terms “we,” “us,” “our,” “the Company” and “our company” refer to FEEC and its subsidiaries.  References to “common stock” refer to the common stock of FEEC.  References to “FEEB” refer to Far East Energy (Bermuda), Ltd., our principal operating subsidiary.  We are an independent oil and gas company.  FEEC, together with its subsidiaries, engages in the acquisition, exploration and development of coalbed methane gas (“CBM”) properties solely in the People’s Republic of China (“PRC”).  Prior to December 31, 2011, we were classified as a development stage company and our activities were principally limited to the drilling, testing, and completion of exploratory and pilot development CBM wells, together with other organizational activities.  As of December 31, 2011, we received our first independent, third party reserve report (the “Reserve Report”).  The Reserve Report provided an estimate of our proved, probable and possible reserves as of December 31, 2011 as determined in accordance with the applicable Securities and Exchange Commission (“SEC”) definitions and regulations.  We have progressed from the development stage status due to the quantity of estimated proved reserves and our generation of gas sales revenues.      

 

The information, as furnished herein, reflects all normal recurring adjustments that are, in the opinion of management, necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented.

 

Basis of Presentation.  The accompanying consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC.  Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") have been condensed or omitted pursuant to those rules and regulations.  The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires the Company’s management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes.  Management believes that the information and disclosures provided herein are adequate to present fairly the consolidated financial position, results of operations and cash flows of the Company. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2011 ("2011 Annual Report").

 

Reclassification.  Certain reclassifications have been made to the consolidated statement of operations for the three and nine months ended September 30, 2011 to be consistent with the 2012 presentation.

 

Recently Issued Accounting Standards and Developments.  There were no recent accounting pronouncements at September 30, 2012 that materially affected our company.