Far East Energy Provides Drilling Update and Details for Operations Update Conference Call

By Far East Energy Corporation, PRNE
Tuesday, June 21, 2011

HOUSTON, June 22, 2011 -

Far East Energy Corporation (OTC BB: FEEC) today
announced a drilling update on the Shouyang Block and details for
an upcoming conference call.

Drilling Update

The drilling of pilot development test well P18 is now complete
and scheduled for fracture stimulation in the coming month.
 The SYS05 well is still proceeding and is near core point on
the #15 coal seam.  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 far into 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 is located 26 kilometers
southeast of the 1H area, in the far eastern area of the block.

These wells give the Company an expanded look at the
permeability of the #15 coal seam at a significant distance from
its present producing area and considerably beyond the recently
drilled SYS02 and P12 wells.  Preliminary results indicate
high permeability could extend to the furthermost wells of the
Shouyang Block.  

The Company is presently connecting 19 previously drilled wells
to its gathering system.  These 19 wells, along with 3 wells
currently being drilled and 4 wells at locations prepared for
drilling, are expected to add 26 additional wells to our original
gathering system, bringing the total number of wells tied to the
gathering system to 56.

Operations Update Conference Call

The Company will host an operations update conference call on
Monday, July 25, 2011 at 11:00 a.m. Eastern Daylight Time (10:00
a.m. Central Daylight Time
), when David Minor, the Company’s new
Executive Director of Operations, returns from the field.  
Michael McElwrath, CEO, will introduce Mr. Minor, who will discuss
the Company’s projects and progress as well as development plans.
 Mr. McElwrath will provide an overview of new contingent
resource data which is expected to be received mid-July.

Conference Call

To participate in the conference call, participants have the
option to listen only to the call; or, to listen and submit
questions for the Q&A segment of the call by accessing a link
which will be posted on the Company’s website.  Please
:  questions can only be submitted via the conference
link which will be posted on the Company’s website at:

    Date:            Monday, July 25, 2011
    Time:            11:00 a.m. EDT - 10:00 a.m. CDT
    Dial in access:  1-800-860-2442 (U.S. participants toll free)
                     1-412-858-4600 (International participants toll free)
                     1-866-605-3852 (Canadian participants toll free)
    Request connect: Far East Energy Conference Call
    Call and Q&A:    www.fareastenergy.com

Far East Energy

Based in Houston, Texas, with offices in Beijing, Kunming, and
Taiyuan City, China, Far East Energy Corporation is focused on
coalbed methane 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 wells may not be drilled, or if
drilled may not be timely; 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 production sharing contracts (”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, +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, all of Far East Energy Corporation

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