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(PR NEWSWIRE) Far East Energy Obtains Extended Exploration Periods and Expands
rilling Program
Far East Energy Obtains Extended Exploration Periods and Expands Drilling Progra


HOUSTON, June 28 /PRNewswire-FirstCall/ -- Far East Energy Corporation
(OTC Bulletin Board: FEEC) announced that it has received the final approval
by the Ministry of Commerce in China of three Modification Agreements that
extend by two years the exploration periods of each of its three Production
Sharing Contracts ("PSC").
Two Modification Agreements with China United Coalbed Methane Corporation
Ltd. ("CUCBM") and ConocoPhillips China, Inc. ("ConocoPhillips") relate to the
Company's PSCs for the Shouyang Area and the Qinnan Area of the Shanxi
Province and, among other things, extend the exploration period under each PSC
until June 30, 2009. The third Modification Agreement with CUCBM relates to
the Company's PSC in the Enhong and Laochang Area in Yunnan Province and,
among other things, extends the exploration period under that PSC until
June 30, 2009.
"While exploration period extensions have generally been granted in China
to coalbed methane companies with active drilling programs, we are happy to
have formally procured extensions allowing us time to further expand
exploration efforts to maximize the areas tested for CBM production," said
Michael R. McElwrath CEO and President of Far East. "That expanded
exploration has begun in earnest, as we have just spudded our first long-reach
horizontal well in the Qinnan Block."
Far East Energy plans to drill the Qinnan horizontal well to a length of
approximately 3000 meters in the Number 3 coal seam. The Qinnan Block
contains approximately 500,000 acres and is located in close proximity to the
West-East Pipeline to Shanghai. At an estimated cost of $1.2 million, the
well should continue a trend of declining well costs as Far East Energy
expands its exploration efforts.
"As previously disclosed, a report recently released by Netherland Sewell
and Associates, Inc. has confirmed the potential revealed by our first wells
in Shouyang. We will use the extended exploration periods to further expand
exploration in Shouyang, and to begin to explore the potential of our equally
large Qinnan Block," said McElwrath. "If we can uncover potential in Qinnan
similar to that in Shouyang, we would then have two areas of high potential in
near proximity to two of the largest pipelines in China running to two of the
largest cities in China, namely Beijing and Shanghai."
Far East Energy's Production Sharing Contracts for the Shouyang and Qinnan
Blocks in Shanxi Province, have 30 year terms and cover 1,057,650 acre (4,280
square kilometers) under farmouts from ConocoPhillips. The Production Sharing
Contract in Yunnan Province covers a 264,863 acre (1,072 square kilometers)
project in Yunnan Province. Thus, the CBM concessions of Far East Energy
contain a land mass slightly larger than the State of Delaware. The Shanxi
properties are strategically located in near proximity to China's two largest
pipelines leading to the industrial centers of Shanghai and Beijing.
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).
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 preliminary
nature of well data, including permeability and gas content, and commercial
viability of the wells; risk and uncertainties associated with exploration,
development and production of oil and gas; drilling and production risks; our
lack of operating history; limited and potentially inadequate cash resources;
expropriation and other risks associated with foreign operations; anticipated
pipeline construction and transportation of gas; matters affecting the oil and
gas industry generally; lack of availability of oil and gas field goods and
services; environmental risks; changes in laws or regulations affecting our
operations, as well as other risks described in our Annual Report on Form 10-K
and subsequent filings with the Securities and Exchange Commission.
Contact:
David Nahmias
Far East Energy Investor Relations
901-218-7770
[e-mail]

Warren Laird / Vice President
CTA Integrated Communications
303-665-4200
[e-mail]
SOURCE Far East Energy Corporation


Contact Information:
David Nahmias of Far East Energy Investor Relations, [phone], dnahmias@f
*** end of story ***arren Laird, Vice President of CTA Integrated Communicatio

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