Profile: Far East Energy Corp (FEEC.OB)

Far East Energy Corporation, incorporated on February 4, 2000, is a development-stage company principally engaged in the drilling, testing and completion of exploratory coalbed methane gas (CBM) wells and organizational activities. The Company is party to three production sharing contracts (PSCs), which cover the 485,000-acre Shouyang Block in Shanxi Province (the Shouyang PSC), the 573,000-acre Qinnan Block in Shanxi Province (Qinnan PSC), and the Enhong and Laochang areas, which total 265,000 acres, in Yunnan Province (the Yunnan PSC). On March 13, 2009, the Company formed an alliance related to its Qinnan Block with Arrow Energy International Pte Ltd (Arrow), the Singapore-based subsidiary of Arrow Energy Limited, a large Australian CBM producer.

During the year ended December 31, 2008, the Company focused its efforts to explore and develop CBM in Shanxi Province in northern People's Republic of China (PRC or China) and in Yunnan Province in southern PRC. During 2008, Far East Energy Corporation completed the drilling of its first horizontal well in the area, with 3,000 meters drilled in the #3 coal seam in its Qinnan Block, Shanxi Province. During 2008, it completed drilling the third and the fourth deviated wells in a five well pattern to test the #7, #8, #13 and #19 coal seams in Yunnan. The Company’s operations in the Shouyang and Qinnan Blocks in Shanxi Province and the Enhong-Laochang area of Yunnan Province are conducted under three separate production sharing contracts (PSCs).