Far East Energy Reports Net Present Value of Shouyang Block Contingent Resources

By Far East Energy Corporation, PRNE
Tuesday, April 5, 2011

HOUSTON, April 6, 2011 - Far East Energy Corporation (OTC BB: FEEC) today announced the results of
an independent report by Netherland, Sewell & Associates, Inc. (NSAI)
evaluating, as of December 31, 2010, the contingent gas resources and Net
Present Value at 10% Discount ("NPV10") of the net contingent cash flow for
the three target coal seams in Far East Energy's 485,000 acre (1960 square
kilometers) Shouyang Block, situated in Shanxi Province, China.

The report gives a Best Estimate of NPV10 of $738.3 million, and a High
Estimate of $1.46 billion, net to Far East.

"Obviously, this is a very strong report, and one with which we are well
pleased," said Michael R. McElwrath, CEO and President of Far East. "These
estimates highlight the robust economic potential of the Block. And, it is
important to note that we hope and believe that these numbers are just the
beginning, as meaningful improvements in well-by-well gas rates and
sustainability - which we certainly expect as we further develop, dewater,
and optimize production - should have the impact of increasing these
estimates, as well as reclassifying some of these resources as reserves."

McElwrath continued, "This report includes only our interest in the
Contingent Resources and, of course, does not constitute a reserves report.
While, under the terms of our gas sales agreement, we received payment for
gas at year-end 2010, we did not flow gas through the system until
mid-January, and even then that was frequently interrupted as we worked out
the bugs in the gathering system during the testing and commissioning
process. That lack of gas flow at year-end and our anticipation of frequent
interruptions as testing and commissioning occurred, led us to decide that
under the applicable rules we did not have a sufficiently completed gas sales
system functioning as of year-end to recognize proven gas reserves in our
December 31, 2010 financials. We will recognize proved gas reserves as
appropriate in 2011, and will also provide a report indicating the probable
and possible gas reserves at that time."

McElwrath continued, "With our current cash balance of $34 million, we
will again accelerate the pace of our drilling program, and drilling should
be funded until approximately the end of 2011. Additionally, we are also
targeting a total of 200 to 250 wells in 2012, and 300 to 400 in 2013. Of
course, the costs of these accelerated outyear drilling programs will be
partially offset by growing revenues from gas sales, and discussions are
underway with several international banks and other institutions for debt
financing. Shouyang's potential becomes more apparent with each successive
independent analysis that we receive, and we will proceed apace to realize
the value of the underlying resource."

Far East also announced that it is taking steps to attempt to list its
stock on a major securities exchange and more information regarding the
potential listing will be provided as it becomes available.

The full text of the NSAI report, gives a Low Estimate of NPV10 of $131.3
, a Best Estimate of $738.3 million, and a High Estimate of $1.46
, and contains further information and qualifications. It may be found
on the website of Far East Energy at www.fareastenergy.com. Contingent
resources do not constitute SEC reserves and are defined as those quantities
of petroleum which are estimated, as of a given date, to be potentially
recoverable from known accumulations, but for which the applied project is
not yet considered mature enough for commercial development because of one or
more contingencies. The estimates in the NSAI report were prepared in
accordance with the definitions and guidelines set forth in the 2007
Petroleum Resources Management System approved by the Society of Professional
Engineers. The resources shown in the NSAI report are estimates only and
should not be construed as exact quantities. Readers are urged to read the
report in its entirety.

Yunnan: Far East also announced that gas is now being produced in limited
quantities from its 264,863 acre (1,072 square kilometers) project in Yunnan
. Gas content measurements are very high at 500-700 scf/ton.

Far East Energy Corporation

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.

Netherland, Sewell & Associates

Netherland, Sewell & Associates, Inc. provides integrated consulting
services encompassing geophysics, geology, petrophysics, engineering,
reservoir modeling and economics. NSAI has performed geophysical, geologic
and engineering studies of reservoirs around the globe - from the North Sea
to South America, from the North Slope to South Florida, and from West Africa
to the Middle East and Indonesia - for leading major integrated petroleum
companies, both small and large independent oil and gas companies, and
various financial institutions and government agencies. For more information
about NSAI, please visit their website at www.netherlandsewell.com.

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; 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 PSC in conjunction with their approval of any
extension of our PSCs; 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, Bruce Huff, +1-832-598-0470, bhuff at fareastenergy.com, Catherine Gay, +1-832-598-0470, cgay at fareastenergy.com, all of Far East Energy Corporation

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