Far East Energy Updates Guidance on the Timing of Release of Independent Engineering Report With Total Gas Resources Identified for the Shouyang Block

HOUSTON, Nov. 5, 2010 /PRNewswire/ -- Far East Energy Corporation (OTC Bulletin Board: FEEC) announced today the anticipated timing of a release disclosing results of an independent report being prepared by Netherland, Sewell & Associates, Inc. (NSAI) estimating total coalbed methane resources (Original Gas-In-Place) in Far East Energy's Shouyang Block in Shanxi Province, China.  This report will cover three target coal seams (the Nos. 3, 9 and 15) and it is anticipated to be received by the company between November 15th and November 22nd.  Far East expects to disclose a summary of the results of the report shortly after its receipt.

"We are looking forward to receiving this initial report on Gas-in-Place for the Shouyang PSC," said Michael R. McElwrath CEO and President of Far East. "We anticipated completion in October; however, we extended our target to no later than Thanksgiving.  Because Shouyang is an enormous Block, and since we are exploring new areas with new wells on a constant basis, NSAI is considering as much new data as possible in this first report.  We have encouraged that approach in order to optimize the results of the initial study, while recognizing that more data gleaned from future wells will result in supplemental reports.  This report will be a very important indicator of the potential of Shouyang, and we are anxious to receive it."    

As previously announced, the NSAI resource report covering the overall resource base, or Original Gas-in-Place will be followed, subsequent to year-end, by a report covering SEC reserves in the Shouyang Block calculated as of December 31, 2010.

About 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 through its agreements with ConocoPhillips and China United Coalbed Methane Company, Ltd. (CUCBM).  

About Netherland, Sewell & Associates

Netherland, Sewell & Associates, Inc. provides integrated consulting services encompassing geophysics, geology, petro physics, 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 CUCBM, to which we are an express beneficiary; 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 the Qinnan PSC 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 the Qinnan PSC; 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; 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 2009 Annual Report and subsequent filings with the Securities and Exchange Commission.

SOURCE Far East Energy Corporation