Far East Energy Announces Robust Winter Drilling Program and Related Funding

HOUSTON, January 13 - Far East Energy Corporation (OTC Bulletin Board: FEEC) announced today it
has commenced a robust winter drilling program in response to the rapid
increase in gas production from its Shouyang Block in Shanxi Province, China
that occurred in late November and December of last year.

Far East will finance the drilling program with the net proceeds of the
approximately US$4.5 million registered direct offering closed in December
2009. The goal of the program is to accelerate the dewatering in the 1H Pilot
Area to lower the pressure and increase the amount of gas being produced in
the Shouyang Block. As previously disclosed, Far East is in discussions with
three separate third parties regarding the potential off-take and sale of gas
produced from the area. Far East believes it could initiate gas sales by the
third quarter of 2010.

The focus of the winter drilling program is the drilling and fracturing
of eight wells by early March. The five drilling rigs being utilized are now
fully operational with the first of the wells having been spudded in
December. Of the eight wells, seven will expand the 1H Pilot Area to the west
and one parameter well will be drilled approximately four kilometers outside
of the 1H Pilot Area to the west in order to obtain further information
regarding the geographic extent of the high permeability/high gas content
area. In addition, the existing P4 parameter well will be fractured and the
production from the #15 seam of the P2 parameter well will be temporarily
suspended to accommodate the fracturing of the #9 seam using the same
wellbore.

"Winter is quite harsh in Shanxi Province, so December, January and
February are normally months when companies cease drilling operations and
evaluate results," said Michael McElwrath, CEO of Far East. "Temperatures
have been as low as -17C (-5F), but instead of staying dormant, we have
designed a workable drilling program and chosen to drill through the extreme
conditions because we are enthusiastic about the ramp up in gas production
and felt that those results call for us to do everything possible to maintain
such positive momentum."

Garry Ward, Senior Vice President of Engineering, added, "The rapid
increase in production that we experienced at the end of last year has
indicated the capability of the highly permeable #15 coal seam. Although this
increase is very positive, we believe that we have not yet seen the full
capacity that is often associated with a coal seam that has the permeability
of the #15 coal seam in the 1H Pilot Area. The winter drilling program is
designed to begin to exploit this rise in gas production by increasing our
water withdrawals and significantly enhancing gas production in 2010 as we
seek to move this project toward gas sales and project financing."

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 their routes may differ from those
mentioned; the pipeline and local distribution/CNG companies may decline to
purchase or take our gas; the gas produced at our wells may not increase to
commercially viable quantities or may decrease; we may have insufficient
capital to develop the Shouyang field; 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 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