Far East Energy Notes 66% Increase in Shouyang Block

- Far East Energy Notes 66% Increase in Shouyang Block

Friday, July 22, 2011
Far East Energy Corp.

Far East Energy announced the results of an independent report prepared by Netherland, Sewell & Associates, Inc. ("NSAI") evaluating, as of June 30, 2011, the net 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, which is subject to certain limitations and assumptions described therein, gives a Best Estimate of NPV10 of $1.23 billion, which reflects a 66% increase over the previously prepared NSAI report as of December 2010; a High Estimate of $2.11 billion, which reflects a 44% increase; and a Low Estimate of $319.30 million, which reflects a 143% increase.

"Obviously, this is an exhilarating report. It reflects the great potential of the Shouyang Block project," said Michael R. McElwrath, CEO and President of Far East. "These estimates not only reinforce the belief we have had in this project since the beginning, but it also better defines the economic potential of the Shouyang Block. As you may recall when we released the December 2010 NSAI report we stated that it was our hope and belief that the numbers then reported by NSAI, were just the beginning indicators of the Shouyang Block's vast resource potential. Now, with the receipt of the latest NSAI report, a mere six months later, this is being borne out. As the Company continues its development of the Shouyang Block project, with operations now under the oversight of David Minor, Executive Director of Operations, we believe we are well positioned to enter the next development phase and expect to see increased well-by-well gas rates coupled with sustainability."

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SeaBird Secures LOI for 2D/3D Surveys in Far East

- SeaBird Secures LOI for 2D/3D Surveys in Far East

Tuesday, July 05, 2011
SeaBird Exploration plc

SeaBird provided a contract update regarding its business activities.

After completing half of her multi client survey in the Gulf of Mexico mid April, Osprey Explorer, will from mid July continue her multi-client survey following dry dock and standby waiting on environmental and other governmental approvals. This survey will be completed end August. Management expects cost recovery during the survey period including standby time with potential uplift following sales of survey data in the second half of 2011. She will then immediately mobilize for her previously reported survey in South America until early December 2011.

After completion of her current survey in South Africa around mid July, Northern Explorer will immediately mobilize for West Africa following an award for a survey with expected completion end September 2011 and thereafter commence a short survey through to end October.

SeaBird has received Letter of Awards for 2 further contracts for 2D/3D surveys in Far East, with expected completion January 2012.

These contracts have a combined value of about US $25-30 million. In addition, the harrier Explorer is continuing on her long term charter with PGS to mid September 2011.

CEO, Tim Isden, commented, "We are encouraged by the increase in volume and continuity in the 2D and low end 3D market. In addition we experience slightly firmer rates. SeaBird has a high quality fleet and an excellent reputation with clients, and this brings a higher expectation of awards. To date in 2011, SeaBird has reported contracts worth around US $70 million with potential MC sales uplift above that figure."

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Far East Energy Reports Shouyang Production Testing Results

- Far East Energy Reports Shouyang Production Testing Results

Monday, May 16, 2011
Far East Energy Corp.

Far East Energy announced the preliminary results of production testing on the SYS02, P8 and P12 pilot development test wells in the Shouyang Block. The SYS02 well is located midway between the northern and southern boundaries of the block and is approximately 20 kilometers south of the 1H production area. It is producing from a depth of 1274 meters which is several hundred meters deeper than the Company's wells in the northern portion of the block. Initial calculations indicate the Company has again found high permeability in the #15 coal seam, and that the high permeability observed at shallower depths also exists well down-structure at much greater depths.

The P8 is 12 kilometers due east of the 1H area. Preliminary production tests at the P8 also indicate high permeability. The P12 pilot development test well is located approximately 22 kilometers southeast of the 1H area and is producing between 35 and 60 Mcfpd, with indications of high permeability. If these preliminary high permeability results are maintained in the SYS02, P8, and P12, then this will indicate that the entire upper half of the block (approximately 980 square kilometers or 242,500 acres) may have high permeability and be potentially commercial.

In addition, drilling activities of pilot development test wells P18, and SYS05 are proceeding. 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 well into in 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 well is located 26 kilometers southeast of the 1H area, in the far eastern area of the block. These wells will give the Company an expanded look at the permeability of the #15 coal seam at a significant distance from the present producing area and well beyond the recently drilled SYS02 and P12 wells. These test wells will provide valuable information regarding the prevailing permeability in a previously-untested significant portion of the Shouyang Block.

As announced on May 4th, the Company is connecting 14 previously drilled wells to its gathering system. In addition, 3 wells currently being drilled, and 9 wells with locations prepared for drilling, will be connected. This will add a total of 26 additional wells to our original gathering system, bringing the total number of wells tied to the gathering system to 56.

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Minor to Lead Ops at Far East Energy

Minor to Lead Ops at Far East Energy

Monday, May 09, 2011
Far East Energy Corp.

Far East Energy Corp. announced Monday that the Company welcomes David J. Minor as Executive Director of Operations reporting directly to Michael R. McElwrath, CEO and President.

"We are very pleased to have Dave Minor join our team," said Michael McElwrath. He continued, "With his excellent credentials, Dave brings extensive coalbed methane experience to the table, with direct and comprehensive involvement in Alabama's Black Warrior Basin. As we move into the development stage of our operations at Shouyang, it is appropriate that we add advanced skill sets to our management capacity and Dave certainly advances our collective competencies for our CBM projects in China."

In his role as Executive Director of Operations for the Company, Minor will utilize his expertise to provide guidance and advice on all operational aspects of its Coalbed Methane Projects in China. His near term goals are to implement a series of operations objectives aimed at increasing the CBM production for currently existing wells and maximizing production for newly drilled wells.

With over thirty years of engineering and management experience, including project planning, drilling, completion and production, Minor has spent the majority of his career in management and technical supervisory roles; and most recently, a transition role as President and General Manager of Walter Black Warrior Basin LLC, a Walter Energy subsidiary, operator of approximately 1,400 coalbed methane wells in Alabama's Black Warrior Basin.

Minor served as Chairman of the Coalbed Methane Association of Alabama (CMAA) from 1996-1997 and again from 1999-2002. He has also served on the Environmental, Tax and Safety Committees. Minor is a member of the Society of Petroleum Engineers and served on numerous Committees. Other professional affiliations include the National Society of Professional Engineers, The University of Alabama Capstone Engineering Society, and The Order of the Engineer. He is a Registered Professional Engineer in Alabama, Mississippi, Oklahoma, Arkansas and Texas. Minor graduated from the University of Alabama with a BS Biology; a BS Civil Engineering; and, a MS Mineral Engineering (Petroleum).

"We look forward to the technical focus that Dave will bring to Far East," said Donald A. Juckett, Chairman of Far East. "We anticipate excellent results from his tenure at Far East as he brings a wide range of technical experience to bear on the exciting Shouyang Block."

Based in Houston, Texas, with offices in Beijing, Kunming, and Taiyuan City, China, Far East Energy Corp. is focused on coalbed methane exploration and development in China.

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Far East Reports Net Present Value of Shouyang Block Resources

Far East Reports Net Present Value of Shouyang Block Resources

Wednesday, April 06, 2011
Far East Energy Corp.

Far East announced the results of an independent report by Netherland, Sewell & Associates (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 Confirms Kora Drilling Agreement with Ophir

FAR Confirms Kora Drilling Agreement with Ophir

Friday, March 25, 2011
FAR

FAR announced that Detailed Agreements have now been finalized with Ophir confirming the terms of an earlier Heads of Agreement to participate in the drilling of the Kora Prospect via the acquisition of a 10 percent paying interest (8.8% beneficial interest) in the AGC Profond PSC, offshore Senegal and Guinea Bissau. Regulatory approval has been granted by the AGC Joint Authority. The agreements also allow Ophir the right to acquire a 22.5% beneficial interest in FAR's Senegal licences.

The Kora well is targeting a prospect having mean prospective oil resources of 448 million barrels (100% basis, Rocksource estimate). The well will be operated by Ophir using the semi-submersible rig Maersk Deliverer and is expected to spud around 11 April 2011 and take in the order of 24 days. The expected spud date may vary depending upon the timing of release by an existing contractor in Ghana from where the rig will mobilize to the AGC area.

The well location is 285km south west of the port of Dakar in a water depth of 2651m. The planned minimum Total Depth for the Kora well is 4,251mSS (approx. 1,600m below the mudline) although consideration will be given to drilling deeper based on the geology encountered.