Far East Energy Announces 10-Q Filing and Operations Update

By Far East Energy Corporation, PRNE
Sunday, May 15, 2011

HOUSTON, May 16, 2011 - Far East Energy Corporation (OTCBB: FEEC) today announced that it has
filed its Quarterly Report on Form 10-Q for the period ending March 31, 2011,
which is available on the SEC's website at www.sec.gov and on the
Company's website, at www.fareastenergy.com, under the tab "Investor
Relations" in the "SEC Filings" section.


The Company also announced today that current gas sales are ranging from
approximately 400-685 Mcfpd, and gross production generally increased during
the first quarter of this year and into the second quarter reaching a high of
890 Mcfpd on May 12, 2011. On May 15, 2011 gross production was 877 Mcfpd and
gross sales were 685 Mcfpd. The Company believes that sales will increase as
gas from soon-to-be connected wells is sold through the gathering system, and
gross production will increase as recently fraced wells ramp up.

Michael R. McElwrath, CEO and President said, "We are pleased that gas
sales have increased across the first quarter and look forward to increased
sales as additional wells are connected to the gathering system."

McElwrath added, "Drilling activity in Shouyang has increased from an
average of 7 wells per year from mid-2005 to mid-2009, to approximately a 30
well-per-year clip in 2010. By the end of 2011 or early 2012 we hope to
achieve a drilling rate that will allow Far East to drill in excess of 200
wells per year subject, of course, to adequate funding and requisite Chinese
approvals. The profile of Far East is shifting as we move from close-in
exploration and incremental development to far-flung exploration and rapid
development at significant multiples of previous activity levels. Last week,
we announced the addition of David Minor as Executive Director of Operations
with a particular focus on optimizing current and future production. We
anticipate continuing to add additional top-caliber technical management and
field personnel as activity ramps up."


The Company also announced the preliminary results of production testing
on the SYS02, P8 and P12 pilot development test wells in the Shouyang Block.
The SYS02 well is located midway between the northern and southern boundaries
of the block and is approximately 20 kilometers south of the 1H production
area. It is producing from a depth of 1274 meters which is several hundred
meters deeper than the Company's wells in the northern portion of the block.
Initial calculations indicate the Company has again found high permeability
in the #15 coal seam, and that the high permeability observed at shallower
depths also exists well down-structure at much greater depths.

The P8 is 12 kilometers due east of the 1H area. Preliminary production
tests at the P8 also indicate high permeability. The P12 pilot development
test well is located approximately 22 kilometers southeast of the 1H area and
is producing between 35 and 60 Mcfpd, with indications of high permeability.
If these preliminary high permeability results are maintained in the SYS02,
P8, and P12, then this will indicate that the entire upper half of the block
(approximately 980 square kilometers or 242,500 acres) may have high
permeability and be potentially commercial.

In addition, drilling activities of pilot development test wells P18, and
SYS05 are proceeding. These wells represent test wells reaching out as far to
the east and south as the Company has drilled to date. The SYS05 well is
located well into in the lower half of the block, approximately 14 kilometers
south and 22 kilometers east of the SYS02 and 35 kilometers south of the
producing 1H area. Pilot development test well P18 well is located 26
kilometers southeast of the 1H area, in the far eastern area of the block.
These wells will give the Company an expanded look at the permeability of the
#15 coal seam at a significant distance from the present producing area and
well beyond the recently drilled SYS02 and P12 wells. These test wells will
provide valuable information regarding the prevailing permeability in a
previously-untested significant portion of the Shouyang Block.

As announced on May 4th, the Company is connecting 14 previously drilled
wells to its gathering system. In addition, 3 wells currently being drilled,
and 9 wells with locations prepared for drilling, will be connected. This
will add a total of 26 additional wells to our original gathering system,
bringing the total number of wells tied to the gathering system to 56.


The Company will hold an operations update conference call in June. Call
hosts will include CEO, Mike McElwrath, and Executive Director of Operations,
David Minor.

About Far East Energy Corporation

Based in Houston, Texas, with offices in Beijing, Kunming, and Taiyuan
City, China, Far East Energy Corporation is focused on CBM exploration and
development in China.

Statements contained in this press release that state the intentions,
hopes, beliefs, anticipations, expectations or predictions of the future of
Far East Energy Corporation and its management are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended. It is
important to note that any such forward-looking statements are not guarantees
of future performance and involve a number of risks and uncertainties. Actual
results could differ materially from those projected in such forward-looking
statements. Factors that could cause actual results to differ materially from
those projected in such forward-looking statements include: there can be no
assurance as to the volume of gas that is ultimately produced or sold from
our wells; the fracture stimulation program may not be successful in
increasing gas volumes; due to limitations under Chinese law, we may have
only limited rights to enforce the gas sales agreement between Shanxi
Province Guoxin Energy Development Group Limited and China United Coalbed
Methane Corporation, Ltd., to which we are an express beneficiary; additional
pipelines and gathering systems needed to transport our gas may not be
constructed, or if constructed may not be timely, or their routes may differ
from those anticipated; the pipeline and local distribution/compressed
natural gas companies may decline to purchase or take our gas, or we may not
be able to enforce our rights under definitive agreements with pipelines;
conflicts with coal mining operations or coordination of our exploration and
production activities with mining activities could adversely impact or add
significant costs to our operations; certain of the proposed transactions
with Dart Energy (formerly Arrow Energy) may not close on a timely basis or
at all, including due to a failure to satisfy closing conditions or
otherwise; the anticipated benefits to us of the transactions with Dart
Energy may not be realized; the final amounts received by us from Dart Energy
may be different than anticipated; Dart Energy may exercise its right to
terminate the Farmout Agreement at any time; the Chinese Ministry of Commerce
("MOC") may not approve the extension of our PSCs on a timely basis or at
all; our Chinese partner companies or the MOC may require certain changes to
the terms and conditions of our PSCs in conjunction with their approval of
any extension of our PSCs, including a reduction in acreage; our lack of
operating history; limited and potentially inadequate management of our cash
resources; risk and uncertainties associated with exploration, development
and production of coalbed methane; proved reserves may not be reported in a
timely manner or at all and, if reported, may be smaller than anticipated;
our inability to extract or sell all or a substantial portion of our
estimated Contingent Resources; we may not satisfy requirements for listing
our securities on a securities exchange; expropriation and other risks
associated with foreign operations; disruptions in capital markets affecting
fundraising; matters affecting the energy industry generally; lack of
availability of oil and gas field goods and services; environmental risks;
drilling and production risks; changes in laws or regulations affecting our
operations, as well as other risks described in our 2010 Annual Report and
subsequent filings with the Securities and Exchange Commission.

Investor Relations of Far East Energy Corporation, +1-281-606-1600, Investorrelations at fareastenergy.com; or Bruce Huff, +1-832-598-0470, bhuff at fareastenergy.com, or Catherine Gay, +1-832-598-0470, cgay at fareastenergy.com, both of Far East Energy Corporation

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