Far East Energy Announces Shouyang CBM Block Reserves Estimate

Far East Energy Corporation has announced the release of an reserves updated with respect to its coalbed methane (CBM) project located in the Shouyang block in Shanxi Province, China as of December 31, 2012.

The updated report indicates that the net total proved reserves are now approximately 303.7 billion cubic feet (Bcf), with estimated future net cash flow, on an NPV10 basis, of approximately $1.1 billion.

The net total proved and probable reserves are now approximately 440.8 Bcf, with estimated future net cash flow, on an NPV10 basis, of approximately $2 billion. The net total proved, probable and possible reserves to be approximately 552.3 Bcf, with an estimated NPV10 of $2.8 billion.

The report was prepared by RISC Operations Pty Ltd (RISC), an internationally recognized independent petroleum advisory evaluation and valuation firm based in Perth, Australia.