Far East Energy Announces Progress of Winter Drilling Program; Added Emphasis on Identifying Additional Areas of High Potential; Imminent Gas Sales Agreement and Pipeline Rerouting; Project Finance Planning; and Date for Annual Meeting

HOUSTON, February 18, 2010 - Far East Energy Corporation (OTC Bulletin Board: FEEC) announced today it
has achieved significant progress in its winter drilling program, designed to
increase gas production from its Shouyang 1H Pilot Area in anticipation of
gas sales in the second half of 2010. Specifically, the Company has completed
five of the initially planned eight total wells to be drilled in the program.
The sixth well is presently underway. Wells seven and eight, as well as three
new wells, will spud in early March (after Chinese New Year) and be completed
in early April, thus fully utilizing the five available rigs, and bringing to
eleven the number of wells planned to be completed by April. Of these eleven
wells, nine will be program wells drilled in the 1H Pilot Area intended to
expand the field to the west and increase the amount of gas being produced in
preparation for anticipated gas sales in the second half of 2010; while two
are parameter wells drilled several kilometers to the west and southwest to
obtain further information regarding the geographic extent of the high
permeability/high gas content area.

The company also announced plans to rapidly begin producing these wells,
including a fracture stimulation program of ten wells to be fractured in
early March, and six to eight wells in late April. Most will be fractured
using improved methods developed by FEEC during its 2009 Work Program,
including the use of resin-coated sand to improve the stability and
durability of the fracs.

Current plans call for five rigs to commence five more wells in April and
early May, with the emphasis increasingly shifting to drilling parameter
wells at four to six kilometer intervals to the west, south, and east with
the goal of demonstrating that there is a very large area of the Shouyang
block that contains high gas content as well as good-to-exceptional
permeability. Of the five wells to be spudded in April and early May, four
will be parameter wells seeking to ascertain how much of the northern area of
the Shouyang Block shares the same rare combination of high permeability and
high gas content discovered in the 1H pilot Area.

It is rare to find high permeability and high gas content together in the
same coal. The San Juan Basin, is generally considered the most prolifically
producing CBM basin in the world, and is an example of what can happen when
high perm and high gas content are found in combination along with
synergistic geologic and hydrologic controls.

"If our parameter wells continue to show good-to-excellent permeability
in combination with high gas content, that will go a long way toward defining
the value proposition for our company," said Garry Ward, Senior Vice
President of Engineering.

To date, the 1H area pilot wells, as well as parameter wells drilled at
intervals of four to six kilometers to the south and to the west of the 1H
Pilot Area have revealed estimated permeability ranging from 10 millidarcies
(md) to over 100md. Permeability in the 2H area, about 4 kilometers south of
the 1H Pilot Area, appears to be around 60 md. In the P2 area, about 6
kilometers west of the 1H, the permeability appears to be between 20 and 40
md; while in the P3 well, about 6 kilometers southwest of the 1H area, the
permeability appears to be about 10 to 20 md, This range of permeability is
not unlike the San Juan Basin where permeability is generally high ranging
from 20 to 40 millidarcies, but can be as much as 65 to 75 md (initial
permeability before matrix shrinkage) in the "fairway". Thus, we believe that
the estimated high permeability in the 1H Pilot Area and in the parameter
wells, combined with high gas content throughout, preliminarily indicates an
area of very promising gas productivity potential, particularly relative to
typical permeability rates in China.

Far East is in discussions with three separate parties (two pipelines and
one CNG company) regarding the potential off-take and sale of gas produced
from the 1H Pilot Area. All gas sales will be negotiated by Far East and its
partner, China United Coalbed Methane (CUCBM). The two pipeline companies are
planning to lay lines of approximately 18 inches in diameter near the
Shouyang 1H Pilot Area. An 18-inch line would have the capacity to transport
between 30 and 50 million cubic feet of gas per day from Shouyang to the
provincial capital (Taiyuan) or other destinations. These developments could
enable Far East to initiate gas sales as early as the third quarter of 2010.

"In my estimation, if a pipeline is built within close proximity to us,
this is the best of all possible worlds. It could accelerate the date of
first gas sales and enhance our ability to sell larger volumes of gas, which
means we could soon have a long-term sales contract, revenues, and be moving
towards long-term project financing ," said Michael R. McElwrath, CEO of Far
East.

As soon as a gas sales agreement is signed, Far East anticipates entering
into early stage discussions and planning for long-term project finance.

"We have a number of milestones to reach and check off before we will
qualify for long-term project finance," said McElwrath. "However, we have
checked off commercial production, and could soon check a gas off-take
agreement off the list. Then, hopefully, we will check off gas sales and
revenues in the third quarter. We will, of course, have to reach positive
cash flow status and sufficient reserves, but we can see the path clearly
now, and that is gratifying."

Annual Meeting of Stockholders Announced

Far East also announced today that its 2010 Annual Meeting of
Stockholders will be held on December 9, 2010, at 10:00 a.m., local time, at
the Crowne Plaza North Greenspoint, 425 N. Sam Houston Parkway E., Houston,
Texas. The Board of Directors has established Thursday, October 28, 2010, as
the record date for determining stockholders of record entitled to notice of,
and to vote at, the 2010 Annual Meeting of Stockholders.

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: the pipelines
mentioned may not be constructed, or if constructed may not be timely, or
their routes may differ from those mentioned; the pipeline and local
distribution/CNG companies may decline to purchase or take our gas, or the
timing of any definitive agreement may take longer than anticipated and the
terms may not as advantageous as expected; the gas produced at our wells may
not increase to commercially viable quantities or may decrease; we may have
insufficient capital to fund the planned drilling or to develop the Shouyang
field; the high permeability and high gas content may not be as widespread as
anticipated; weather may significantly delay the planned drilling program;
wells may be damaged or adversely impacted during the production process,
resulting in decreases in the amount of gas produced, or that can be
produced; certain proposed transactions with 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 transactions with
Arrow may not be realized; the final amounts received by us from Arrow may be
different than anticipated; Chinese Ministry of Commerce (MOFCOM) may not
approve the extensions of the Qinnan Production Sharing Contract (Qinnan PSC)
on a timely basis or at all; PetroChina or MOFCOM may require certain changes
to the terms and conditions of the Qinnan PSC in conjunction with their
approval of any extension; our lack of operating history; limited and
potentially inadequate management of our cash resources; risk and
uncertainties associated with exploration, development and production of CBM;
expropriation and other risks associated with foreign operations; disruptions
in capital markets effecting 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 Annual Report on Form 10-K for 2008 and subsequent filings with the
Securities and Exchange Commission.

David Nahmias, +1-901-218-7770, dnahmias 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, all of Far East Energy Corporation