Far East Energy Announces Updates on Drilling Program and Progress Toward Gas Sales Agreement

HOUSTON, April 12, 2010 - Far East Energy Corporation (OTC Bulletin Board: FEEC) today summarized
current and recently completed drilling and completion activities in its
Shouyang Block, designed to increase gas production from its Shouyang 1H
Pilot Area in preparation for potential gas sales in the second half of 2010.
Far East also discussed its near-term plans for exploration and development
of the northern portion of the Shouyang Block as well as recent developments
concerning potential pipeline access and second half-2010 gas sales.

The Company has drilled a cumulative total of 32 wells in the northern
portion of the Shouyang Block in Shanxi Province, China. Six of these wells
are horizontal wells, seven are deviated or directional wells, and 19 are
vertical wells. Twenty-six of those wells were drilled in the 1H Pilot Area.
These 26 wells provide the production pilot from which most of the Company's
gas production is currently derived, and this area is targeted to be steadily
expanded to the west and southwest to increase production in anticipation of
gas sales.

Six of the wells drilled to-date in northern Shouyang, including the
early 2V and 2H wells, serve as parameter or "step-out" wells to provide
further information regarding the geographic extent of the high
permeability/high gas content area, and have been drilled several kilometers
to the east, west and southwest. Thus far all parameter wells have revealed
good to excellent permeability, and some are already producing gas. The
results of all parameter wells will be analyzed with a goal of identifying
additional prospective areas for drilling and production operations across
the northern portion of the Shouyang Block.

Another 14 wells are expected to be drilled during the first half of
2010, with five to be drilled in the 1H Pilot Area, and nine to be parameter
exploration wells. The five Pilot Area wells are underway or nearing
commencement. The nine additional parameter wells will bring to thirteen the
number of parameter or step-out wells drilled in northern Shouyang for
exploratory purposes.

"Upon completion of these parameter exploration wells, we will have
covered a substantial swath of the northern portion of our Shouyang Block
from its eastern to its western boundary," said Michael R. McElwrath CEO and
President of Far East Energy. "We will have obtained essential data
facilitating our identification and high-grade ranking of what we believe to
be the best areas for the next pilots. Fortunately, in the step-out wells
drilled to-date, we are finding what appears to be much better permeability
than is normally found in China's gas rich coals."

In addition to this aggressive first-half 2010 drilling program,
approximately 25 wells are planned to be fracture stimulated from late March
through late July. Thirteen of these will be in the 1H Pilot Area, including
four existing Pilot Area wells that are being re-stimulated. Twelve are
parameter wells. All are being fracture stimulated using enhanced methods
developed by Far East during its 2009 Work Program, including the use of
resin-coated sand to improve the stability and durability of the fracs.
Production results from these efforts should be realized across the next few
months.

To date, the 1H area pilot wells, as well as parameter wells drilled at
intervals of four to six kilometers to the south and west of the 1H Pilot
Area have revealed estimated permeability ranging from 10 millidarcies (md)
to over 100md. Thus, the Company believes 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, particularly in contrast with typical
permeability rates in China.

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.

Far East remains in discussions regarding the potential off-take and sale
of gas produced from the 1H Pilot Area. Definitive agreements have not yet
been reached, and all gas sales will be negotiated by Far East and its
partner, China United Coalbed Methane (CUCBM). Far East had previously
disclosed that two pipeline companies are planning to lay lines of
approximately 18 inches in diameter near the Shouyang 1H Pilot Area. One of
those lines is well-underway and has been re-routed to pass within one to two
kilometers of the 1H Pilot Area by July 2010. The second competing pipeline
company has now stated that it has obtained approval to build a pipeline to
the City of Shouyang which is about 15 kilometers away, and desires to
discuss routing that line to our Shouyang Pilot Area and then on to Taiyuan,
the capital of Shanxi Province with a population of approximately 4 million.
These developments could enable Far East to initiate gas sales as early as
the third quarter of 2010.

"Current indications are that a second pipeline may be built within close
proximity of our Pilot Area. If so, this is an excellent development," said
McElwrath. "It is rare to have a pipeline within a few kilometers of your
holdings in China. Should it develop that two pipelines are built to within a
few kilometers of us, that will be rare indeed. It could accelerate the date
of first gas sales and facilitate the execution of the first gas sales
contract. That in turn should put Far East in position to begin discussions
and planning for long-term project finance. We will, of course, need to
demonstrate sufficient reserves, but the potential is quite clear."

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 be 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 2009 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