FAR EAST ENERGY CORP (OTC:FEEC)

Item 1.03. Bankruptcy or Receivership.

On November 10, 2015, Far East Energy Corporation (the “Company”) commenced a bankruptcy case (the “Chapter 7 Case”) by filing a voluntary petition for relief under the provisions of chapter 7 of title 11 of the United States Code, 11 U.S.C. §§ 101 et seq. (the “Code”) in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”). The Chapter 7 Case is entitled “In re Far East Energy Corporation.” As a result of the filing of the Chapter 7 Case, a Chapter 7 trustee will be appointed by the Bankruptcy Court and will assume control of the Company. The assets of the Company will be liquidated in accordance with the Code. The Company’s board of directors, after spending considerable time and effort attempting to sell or restructure the Company and not being successful, concluded that no viable options remained for implementing a restructuring, or obtaining financing, and that the Chapter 7 case was the only alternative available.

Item 2.04. Triggering Events that Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

The filing of the Chapter 7 Case constituted an event of default under the terms of that certain Facility Agreement, dated November 28, 2011, as amended from time to time (the “Facility Agreement”), that certain Term Loan Facility Agreement, as amended from time to time (the “Term Loan Facility Agreement”), dated September 29, 2015, and that certain Indenture, dated January 15, 2013, for the Senior Secured Notes due 2016 (the "Indenture"), each among the Company, its wholly-owned subsidiary Far East Energy (Bermuda), Ltd. and the other parties thereto. As of the date hereof, approximately $23.2 million, $10.8 million and $89.1 million of principal and accrued but unpaid interest remains outstanding under the Facility Agreement, the Term Loan Facility Agreement and the Indenture, respectively. The filing of the Chapter 7 Case is an event of default under each of the Facility Agreement, the Term Loan Facility Agreement and the Indenture, and the amount outstanding under the Indenture has become immediately due and payable as a result of the filing of the Chapter 7 Case.

 
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Each of the directors of the Company, Mr. Donald A. Juckett, Mr. William A. Anderson, Mr. C. P. Chiang, Mr. John C. Mihm, Mr. Thomas E. Williams, and Mr. Michael R. McElwrath, resigned as a member of the Company’s board of directors effective immediately upon the filing of the Chapter 7 Case. The resignations are not the result of any disagreement with the Company regarding the Company’s operations, policies, or practices, but are because of the filing of the Chapter 7 Case. The Chapter 7 trustee will assume control over the assets of the Company, effectively eliminating the authority and powers of the board of directors of the Company.

Each of the officers of the Company, Mr. McElwrath, Chief Executive Officer and President, and Ms. Jennifer D. Whitley, Chief Financial Officer and Secretary, ceased to be officers and employees of the Company effective immediately upon the filing of the Chapter 7 Case. Mr. McElwrath and Ms. Whitley also resigned from their positions with the wholly-owned subsidiary of the Company, Far East Energy (Bermuda), Ltd., in each case effective immediately upon the filing the Chapter 7 Case. The appointment of the Chapter 7 trustee will effectively eliminate the authority and powers of the officers of the Company to act on behalf of the Company. The employment of each of Mr. McElwrath and Ms. Whitley by the Company was also terminated, effective immediately upon the filing of the Chapter 7 Case.

Item 1.01 Entry into a Material Definitive Agreement.

On October 5, 2015, Far East Energy Corporation (the “Company”) and Far East Energy (Bermuda), Ltd. (“FEEB”), a wholly-owned subsidiary of the Company, entered into an Amendment Agreement (the “Amendment”) with the lenders party thereto (collectively, the "Lenders").

The Amendment amends the facility agreement originally made and dated November 28, 2011 (as amended, the “Facility Agreement”) between the Company, FEEB and Standard Chartered Bank (“SCB”) to, among other things, extend the maturity date of the Facility Agreement to March 29, 2016. The rights and obligations of SCB under the Facility Agreement were transferred to the Lenders on September 29, 2015.

HOUSTON, Sept. 30, 2015 /PRNewswire/ -- Far East Energy Corporation (FEEC), the U.S. listed company that operates the Shouyang Coalbed Methane Production Sharing Contract in Shanxi Province, People's Republic of China, today announced that Far East Energy (Bermuda), Ltd. (FEEB), a wholly owned subsidiary of Far East Energy Corporation, has entered into a Term Loan Facility Agreement (TLFA), effective September 29, 2015, with the lenders party thereto.  The TLFA has a term ending March 29, 2016 and up to which $16,263,604 in aggregate principal amount will be loaned to FEEB in accordance with the terms of the TLFA. $8,763,604 of such amount was used to repay in full the amounts outstanding under the term loan facility agreements, dated as of February 24, 2015, April 8, 2015 and June 26, 2015, respectively.  The remaining $7,500,000 under the TLFA will be used for working capital approved by the lenders.  FEEB received an advance in the amount of $500,000 under the TLFA upon closing.

Far East Energy Corporation's ongoing strategic discussions remain underway, and the company will advise its shareholders at appropriate times as developments progress.

Item 1.01 Entry into a Material Definitive Agreement.

On September 10, 2015, Far East Energy (Bermuda), Ltd. (the “Borrower”), a wholly-owned subsidiary of Far East Energy Corporation (the “Guarantor”), the Guarantor and Standard Chartered Bank (the “Lender”) entered into the Thirteenth Extension Agreement to the Facility Agreement (the “Thirteenth Extension Agreement”) to, among other things, extend the maturity date of the Facility Agreement from September 4, 2015 to October 8, 2015. Interest due on September 4, 2015 will be deferred to the new maturity date of October 8, 2015. The Thirteenth Extension Agreement contains certain customary representations, warranties, releases and confirmations.

Item 1.01 Entry into a Material Definitive Agreement.

On July 20, 2015, Far East Energy (Bermuda), Ltd. (“FEEB”), a wholly-owned subsidiary of Far East Energy Corporation, entered into an Amendment Agreement (the “Amendment”) to that certain Term Loan Facility Agreement (the “Facility Agreement”), dated as of February 24, 2015, by and among FEEB, as borrower, and the lenders party thereto, to extend the repayment date of the Agreement from July 27, 2015 to October 8, 2015.

The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by reference to the Amendment, a copy of which is attached hereto as Exhibit 10.1, the amendment to the Facility Agreement attached as Exhibit 10.1 to the Form 8-K filed on June 29, 2015, the amendment to the Facility Agreement attached as Exhibit 10.1 to the Form 8-K filed on May 28, 2015, and the Facility Agreement attached as Exhibit 10.1 to the From 8-K filed on February 27, 2015, which are each incorporated herein by reference.

Item 1.01 Entry into a Material Definitive Agreement.

 
On July 2, 2015, Far East Energy (Bermuda), Ltd. (the “Borrower”), a wholly-owned subsidiary of Far East Energy Corporation (the “Guarantor”), the Guarantor and Standard Chartered Bank (the “Lender”) entered into the Twelfth Extension Agreement to the Facility Agreement (the “Twelfth Extension Agreement”) to, among other things, extend the maturity date of the Facility Agreement from July 3, 2015 to September 4, 2015. Interest due on July 3, 2015 will be deferred to the new maturity date of September 4, 2015. The Twelfth Extension Agreement contains certain customary representations, warranties, releases and confirmations.

Item 1.01 Entry into a Material Definitive Agreement.

 
On June 1, 2015, Far East Energy (Bermuda), Ltd. (the “Borrower”), a wholly-owned subsidiary of Far East Energy Corporation (the “Guarantor”), the Guarantor and Standard Chartered Bank (the “Lender”) entered into the Eleventh Extension Agreement to the Facility Agreement (the “Eleventh Extension Agreement”) to, among other things, extend the maturity date of the Facility Agreement from June 1, 2015 to July 3, 2015. Interest due on June 1, 2015 will be deferred to the new maturity date of July 3, 2015. The Eleventh Extension Agreement contains certain customary representations, warranties, releases and confirmations.

Item 1.01 Entry into a Material Definitive Agreement.

 
On April 30, 2015, Far East Energy (Bermuda), Ltd. (the “Borrower”), a wholly-owned subsidiary of Far East Energy Corporation (the “Guarantor”), the Guarantor and Standard Chartered Bank (the “Lender”) entered into the Tenth Extension Agreement to the Facility Agreement (the “Tenth Extension Agreement”) to, among other things, extend the maturity date of the Facility Agreement from April 30, 2015 to June 1, 2015. Interest due on April 30, 2015 will be deferred to the new maturity date of June 1, 2015. The Tenth Extension Agreement contains certain customary representations, warranties, releases and confirmations.

Item 1.01 Entry into a Material Definitive Agreement.

On April 8, 2015, Far East Energy (Bermuda), Ltd. (“FEEB”), a wholly-owned subsidiary of Far East Energy Corporation (the “Company”), entered into a Term Loan Facility Agreement (the “Agreement”), as borrower, with the lenders party thereto (collectively, the "Lenders").

The Agreement provides for a $4.0 million unsecured credit facility to be used for certain working capital purposes approved by the Lenders. It has a six-month term ending on October 8, 2015. Loans under the Agreement will be made by the Lenders pursuant to utilization requests delivered by FEEB. FEEB has the right to deliver up to fifteen utilization requests during the initial 45-day period after the date of the Agreement. FEEB delivered its first utilization request under the Agreement for $700,000, which was funded on April 8, 2015. Any amounts requested by FEEB pursuant to any subsequent utilization requests are subject to the prior approval of the Lenders. Loans under the Agreement will bear interest at a rate of 20%. The Agreement provides for a commitment fee of 5% of the total commitments under the Agreement. The commitment fee is payable upon repayment of the Loans. Upon a change of control, FEEB is required to repay all amounts owed to the Lenders under the Agreement.

The Agreement contains certain restrictive covenants, including, among others, prohibitions on entering into certain merger arrangements; on selling, transferring or otherwise disposing of assets; on creating or permitting certain liens; on making distributions; on issuing certain equity securities; on making a substantial change in the nature of FEEB's business; and on incurring certain indebtedness. The Agreement contains certain events of default that could, subject to certain conditions, cause the amounts owed by FEEB under the Agreement to be immediately due and payable.

The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the Agreement, a copy of which is attached hereto as Exhibit 10.1, and is incorporated herein by reference.

Item 1.01 Entry into a Material Definitive Agreement.

 
On March 31, 2015, Far East Energy (Bermuda), Ltd. (the “Borrower”), a wholly-owned subsidiary of Far East Energy Corporation (the “Guarantor”), the Guarantor and Standard Chartered Bank (the “Lender”) entered into the Ninth Extension Agreement to the Facility Agreement (the “Ninth Extension Agreement”) to, among other things, extend the maturity date of the Facility Agreement from March 31, 2015 to April 30, 2015. Interest due on March 31, 2015 will be deferred to the new maturity date of April 30, 2015. The Ninth Extension Agreement contains certain customary representations, warranties, releases and confirmations.
 
The foregoing description of the Ninth Extension Agreement does not purport to be complete and is qualified in its entirety by reference to the Ninth Extension Agreement attached hereto as Exhibit 10.1, the Extension Agreement to the Facility Agreement attached as Exhibit 10.79 to the Form 10-K filed on March 31, 2014, the Second Extension Agreement to the Facility Agreement attached as Exhibit 10.1 to the Form 8-K filed on July 11, 2014, the Third Extension Agreement attached as Exhibit 10.1 to the Form 8-K filed on September 15, 2014, the Fourth Extension Agreement attached as Exhibit 10.1 to the Form 8-K filed on October 31, 2014, the Fifth Extension Agreement attached as Exhibit 10.1 to the Form 8-K filed on November 28, 2014, the Sixth Extension Agreement attached as Exhibit 10.1 to the Form 8-K filed on January 5, 2015, the Seventh Extension Agreement attached as Exhibit 10.1 to the Form 8-K filed on January 15, 2015, the Eighth Extension Agreement attached as Exhibit 10.1 to the Form 8-K filed on February 19, 2015, and to the Facility Agreement attached as Exhibit 10.1 to the Form 8-K filed on December 2, 2011, the first amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on May 25, 2012, the second amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on November 28, 2012, the third amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on December 20, 2012, the fourth amendment thereto attached as Exhibit 10.3 to the Form 8-K filed on January 18, 2013, the fifth amendment thereto attached as Exhibit 10.4 to the Form 8-K filed on January 18, 2013, and the sixth amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on December 31, 2013, which are each incorporated by reference herein.

On March 13, 2015, Far East Energy (Bermuda), Ltd. (“FEEB”), a wholly-owned subsidiary of Far East Energy Corporation, notified China United Coalbed Methane Corporation, Ltd. (“CUCBM”) that FEEB has relinquished its rights relating to the Enhong-Laochang acreage in Yunnan Province, People’s Republic of China under that certain Production Sharing Contract for Exploitation of Coalbed Methane Resources in Enhong and Laochang, Yunnan Province, the People’s Republic of China, dated January 25, 2002, by and among FEEB and CUCBM, as amended (the “PSC”). Accordingly, FEEB will have no further commitments or obligations relating to the Enhong-Laochang acreage under the PSC. In addition, FEEB has relinquished its right, title and interest to certain equipment and facilities located within the boundaries of the Enhong-Laochang acreage.

Item 1.01 Entry into a Material Definitive Agreement.

On February 24, 2015, Far East Energy (Bermuda), Ltd. (“FEEB”), a wholly-owned subsidiary of Far East Energy Corporation (the “Company”), entered into a Term Loan Facility Agreement (the “Agreement”), as borrower, with the lenders party thereto (collectively, the "Lenders").

The Agreement provides for a $1.4 million unsecured credit facility to be used for certain working capital purposes approved by the Lenders. It has a three-month term ending on May 25, 2015. Loans under the Agreement will be made by the Lenders pursuant to utilization requests delivered by FEEB. FEEB has the right to deliver up to three utilization requests during the initial 45-day period after the date of the Agreement. FEEB delivered its first utilization request under the Agreement for $350,000, which was funded on February 25, 2015. Any amounts requested by FEEB pursuant to the second and third utilization requests are subject to the prior approval of the Lenders. Loans under the Agreement will bear interest at a rate of 25%. Upon a change of control, FEEB is required to repay all amounts owed to the Lenders under the Agreement plus a change of control premium equal to the principal amount of the loans drawndown under the Agreement at such time multiplied by 5.5, minus the principal amount of the loans drawndown under the Agreement at such time.

The Agreement contains certain restrictive covenants, including, among others, prohibitions on entering into certain merger arrangements; on selling, transferring or otherwise disposing of assets; on creating or permitting certain liens; on making distributions; on issuing certain equity securities; on making a substantial change in the nature of its business; and on incurring certain indebtedness. The Agreement contains certain events of default that could, subject to certain conditions, cause the amounts owed by FEEB under the Agreement to be immediately due and payable.

Item 1.01 Entry into a Material Definitive Agreement.

On February 18, 2015, Far East Energy (Bermuda), Ltd. (the “Borrower”), a wholly-owned subsidiary of Far East Energy Corporation (the “Guarantor”), the Guarantor and Standard Chartered Bank (the “Lender”) entered into the Eighth Extension Agreement to the Facility Agreement (the “Eighth Extension Agreement”) to, among other things, extend the maturity date of the Facility Agreement from February 13, 2015 to March 31, 2015. Interest due on February 13, 2015 will be deferred to the new maturity date of March 31, 2015. The Eighth Extension Agreement contains certain customary representations, warranties, releases and confirmations.

Item 1.01 Entry into a Material Definitive Agreement.

 
On December 31, 2014, Far East Energy (Bermuda), Ltd. (the “Borrower”), a wholly-owned subsidiary of Far East Energy Corporation (the “Guarantor”), the Guarantor and Standard Chartered Bank (the “Lender”) entered into the Sixth Extension Agreement to the Facility Agreement (the “Sixth Extension Agreement”) to, among other things, extend the maturity date of the Facility Agreement from December 31, 2014 to January 15, 2015. Interest due on December 31, 2014 will be deferred to the new maturity date of January 15, 2015. The Sixth Extension Agreement contains certain customary representations, warranties, releases and confirmations.

The foregoing description of the Sixth Extension Agreement does not purport to be complete and is qualified in its entirety by reference to the Sixth Extension Agreement attached hereto as Exhibit 10.1, the Extension Agreement to the Facility Agreement attached as Exhibit 10.79 to the Form 10-K filed on March 31, 2014, the Second Extension Agreement to the Facility Agreement attached as Exhibit 10.1 to the Form 8-K filed on July 11, 2014, the Third Extension Agreement attached as Exhibit 10.1 to the Form 8-K filed on September 15, 2014, the Fourth Extension Agreement attached as Exhibit 10.1 to the Form 8-K filed on October 31, 2014, the Fifth Extension Agreement attached as Exhibit 10.1 to the Form 8-K filed on November 28, 2014, and to the Facility Agreement attached as Exhibit 10.1 to the Form 8-K filed on December 2, 2011, the first amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on May 25, 2012, the second amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on November 28, 2012, the third amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on December 20, 2012, the fourth amendment thereto attached as Exhibit 10.3 to the Form 8-K filed on January 18, 2013, the fifth amendment thereto attached as Exhibit 10.4 to the Form 8-K filed on January 18, 2013, and the sixth amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on December 31, 2013, which are each incorporated by reference herein.

Item1.01 Entry into a Material Definitive Agreement.

 
On November 28, 2014, Far East Energy (Bermuda), Ltd. (the “Borrower”), a wholly-owned subsidiary of Far East Energy Corporation (the “Guarantor”), the Guarantor and Standard Chartered Bank (the “Lender”) entered into the Fifth Extension Agreement to the Facility Agreement (the “Fifth Extension Agreement”) to, among other things, extend the maturity date of the Facility Agreement from December 5, 2014 to December 31, 2014. Interest due on November 28, 2014 will be deferred to the new maturity date of December 31, 2014. The Fifth Extension Agreement contains certain customary representations, warranties, releases and confirmations.

The foregoing description of the Fifth Extension Agreement does not purport to be complete and is qualified in its entirety by reference to the Fifth Extension Agreement attached hereto as Exhibit 10.1, the Extension Agreement to the Facility Agreement attached as Exhibit 10.79 to the Form 10-K filed on March 31, 2014, the Second Extension Agreement to the Facility Agreement attached as Exhibit 10.1 to the Form 8-K filed on July 11, 2014, the Third Extension Agreement attached as Exhibit 10.1 to the Form 8-K filed on September 15, 2014, the Fourth Extension Agreement attached as Exhibit 10.1 to the Form 8-K filed on October 31, 2014, and to the Facility Agreement attached as Exhibit 10.1 to the Form 8-K filed on December 2, 2011, the first amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on May 25, 2012, the second amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on November 28, 2012, the third amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on December 20, 2012, the fourth amendment thereto attached as Exhibit 10.3 to the Form 8-K filed on January 18, 2013, the fifth amendment thereto attached as Exhibit 10.4 to the Form 8-K filed on January 18, 2013, and the sixth amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on December 31, 2013, which are each incorporated by reference herein.

Management Discussion and Analysis

Operating Revenue during the three months ended September 30, 2014 increased $0.9 million, or 214%, as compared to the same period a year ago due primarily to the increase in the number of producing wells connected to the gathering system and the increased 2014 gas contract price (up 42% from the 2013 gas contract price).

Item 1.01 Entry into a Material Definitive Agreement.

On October 30, 2014, Far East Energy (Bermuda), Ltd. (the “Borrower”), a wholly-owned subsidiary of Far East Energy Corporation (the “Guarantor”), the Guarantor and Standard Chartered Bank (the “Lender”) entered into the Fourth Extension Agreement to the Facility Agreement (the “Fourth Extension Agreement”) to, among other things, extend the maturity date of the Facility Agreement from October 31, 2014 to December 5, 2014. The Fourth Extension Agreement contains certain customary representations, warranties, releases and confirmations.

The foregoing description of the Fourth Extension Agreement does not purport to be complete and is qualified in its entirety by reference to the Fourth Extension Agreement attached hereto as Exhibit 10.1, the Extension Agreement to the Facility Agreement attached as Exhibit 10.79 to the Form 10-K filed on March 31, 2014, the Second Extension Agreement to the Facility Agreement attached as Exhibit 10.1 to the Form 8-K filed on July 11, 2014, the Third Extension Agreement attached as Exhibit 10.1 to the Form 8-K filed on September 15, 2014, and to the Facility Agreement attached as Exhibit 10.1 to the Form 8-K filed on December 2, 2011, the first amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on May 25, 2012, the second amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on November 28, 2012, the third amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on December 20, 2012, the fourth amendment thereto attached as Exhibit 10.3 to the Form 8-K filed on January 18, 2013, the fifth amendment thereto attached as Exhibit 10.4 to the Form 8-K filed on January 18, 2013, and the sixth amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on December 31, 2013, which are each incorporated by reference herein.

Item 1.01 Entry into a Material Definitive Agreement.

On September 12, 2014, Far East Energy (Bermuda), Ltd. (the “Borrower”), a wholly-owned subsidiary of Far East Energy Corporation (the “Guarantor”), the Guarantor and Standard Chartered Bank (the “Lender”) entered into the Third Extension Agreement to the Facility Agreement (the “Third Extension Agreement”) to, among other things, extend the maturity date of the Facility Agreement from September 15, 2014 to October 31, 2014. The Third Extension Agreement contains certain customary representations, warranties, releases and confirmations.

The foregoing description of the Third Extension Agreement does not purport to be complete and is qualified in its entirety by reference to the Third Extension Agreement attached hereto as Exhibit 10.1, the Extension Agreement to the Facility Agreement attached as Exhibit 10.79 to the Form 10-K filed on March 31, 2014, the Second Extension Agreement to the Facility Agreement attached as Exhibit 10.1 to the Form 8-K filed on July 11, 2014, and to the Facility Agreement attached as Exhibit 10.1 to the Form 8-K filed on December 2, 2011, the first amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on May 25, 2012, the second amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on November 28, 2012, the third amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on December 20, 2012, the fourth amendment thereto attached as Exhibit 10.3 to the Form 8-K filed on January 18, 2013, the fifth amendment thereto attached as Exhibit 10.4 to the Form 8-K filed on January 18, 2013, and the sixth amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on December 31, 2013, which are each incorporated by reference herein.

Item 1.01 Entry into a Material Definitive Agreement.

 
On July 9, 2014, Far East Energy (Bermuda), Ltd. (the “Borrower”), a wholly-owned subsidiary of Far East Energy Corporation (the “Guarantor”), the Guarantor and Standard Chartered Bank (the “Lender”) entered into the Second Extension Agreement to the Facility Agreement (the “Second Extension Agreement”) to, among other things, extend the maturity date of the Facility Agreement from July 15, 2014 to September 15, 2014. The Second Extension Agreement contains certain customary representations, warranties, releases and confirmations.
 

HOUSTON, May 8, 2014 /PRNewswire/ -- Far East Energy Corporation (OTCBB:FEEC), the U.S. listed company that operates the Shouyang Coalbed Methane (CBM) Production Sharing Contract (PSC) in Shanxi Province, People's Republic of China, today announced that it has filed its results for the quarter ending March 31, 2014 on Form 10-Q with the SEC.  The company also announced the release of an updated independent engineering report prepared by Resource Investment Strategy Consultants (RISC), as of December 31, 2013.  The reserves estimates in the updated RISC report were prepared in accordance with the standards recognized by the Society of Petroleum Engineers (SPE) in the Petroleum Resources Management System (PRMS).

Gas sales volumes in the first quarter of 2014 were up 73% compared to the same period in 2013, following the multi-well drilling and fracing program completed during 2013.  At the same time, and as previously announced, the gas contract price for 2014 has increased following negotiation with our off-taker, Shanxi Provincial Guoxin.  For first quarter 2014, the company received a gas price averaging the equivalent of $8.90/Mcf, up 38% from the same period in 2013.  The actual base price paid for our gas prior to subsidies rose by 42% on January 1, 2014, from 1.2 RMB per cubic meter to 1.7 RMB per cubic meter.  As a result of these two factors, operating revenue in Q1 2014 was up 138% compared to the same period in 2013.

Commenting, CEO and President Michael McElwrath said, "It's rewarding to see that the work put into the Shouyang Block in 2013 drilling and fracing new wells has resulted in a significant increase in production and revenues during the first quarter of 2014."

Separately, the company has released an updated reserves report conforming to the PRMS standards as defined by the SPE engineers and prepared by RISC, as of December 31, 2013.  The updated report indicates that the estimated future net cash flow, on an NPV10 basis, for the 2P (Proved plus Probable) reserves has increased to $2.85 billion, up 39% from the figure at December 31, 2012, reflecting an 104% increase in the Proved Developed reserves category.  Reserves have been upgraded from the Proved Undeveloped category to the Proved Developed category, to leave overall 1P and 2P reserves at similar levels, of 301 Bcf and 439 Bcf, respectively.

In March 2014, RISC had released its reserve report prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC).  The primary difference in the two reports is in regard to the calculation of proved reserves.  The PRMS guidelines allow for more Proved Undeveloped locations to be assigned (that would otherwise be assigned as Probable reserves under the rules and regulations of the SEC) when an area is known to have certain geologic connectivity in a region.  This difference is particularly relevant to CBM projects where the coal seam characteristics are well known.

CEO Michael McElwrath said, "Our development drilling in 2013 and our 42% increase in gas price are both reflected in this report, which continues to underscore the value of our Shouyang project."

The Overall Development Plan (ODP) for the 1H production area is expected to be submitted to the NDRC shortly and the company expects to receive the "road-pass" ODP by this summer.

With a strong 2013 program now showing results in terms of higher gas production, the key focus for management is to secure the funds required to broaden the production well pattern in the core 1H area, and to continue the appraisal of the southern portion of the Shouyang Block. 

Commenting further, McElwrath said, "We are devoting substantial time to securing the funding required to continue the development of the Shouyang PSC.  The extension to the Standard Chartered Bank facility agreement provides time to progress further.  Field activity continues, with the next round of drilling and fracing subject to the ability to secure new funding.  We are mindful of our shareholders, are very grateful for your continued support of the company and are committed to providing you further updates as we continue to make progress toward our shared goals."

Management Discussion and Analysis

Results of Operations

Year Ended 2013 compared to Year Ended 2012

Sale volumes for the year ended December 31, 2013, net to Far East, decreased 28 MMcf, or 12%, as compared to the same period a year ago.  This decrease is partially attributable to intermittent interruptions from the power supply to our pumps and compressors as the Shanxi Province engaged in upgrades to the regional power infrastructure in the first several months of 2013.

Oil and gas exploration costs, other than the costs of drilling exploratory wells, are charged to expense as incurred. The costs of drilling exploratory wells are capitalized pending determination of whether they have discovered proved commercial reserves.  For further discussion of our accounting policies, see "Critical Accounting Policies—Accounting for Oil and Gas Properties" below.

Far East Energy (Bermuda), Ltd. (“FEEB”), a wholly-owned subsidiary of Far East Energy Corporation (the “Company”), and China United Coalbed Methane Corporation Ltd. (“CUCBM”) are parties to that certain Production Sharing Contract for the Exploitation of Coalbed Methane Resources for the Shouyang Area in Shanxi Province, Qinshui Basin, The People’s Republic of China, dated April 16, 2002 (as amended from time to time, the “Shouyang PSC”). On December 6, 2013, FEEB and CUCBM agreed to extend the exploration period under the Shouyang PSC to June 30, 2016 for 1,103.1 square kilometers (272,581.95 acres) (designated as Area B in the Shouyang PSC). In return for such extension, FEEB agreed to drill at least 39 additional wells in such area by June 30, 2016. In addition, FEEB and CUCBM agreed to revise certain additional terms of the Shouyang PSC to reflect the agreement regarding the foregoing matters and certain other matters and intend to do so within 90 days following December 6, 2013.

HOUSTON, Nov. 12, 2013 /PRNewswire/ -- Far East Energy Corporation (OTCBB:FEEC), the U.S. listed company that operates the Shouyang Block Coalbed Methane (CBM) Production Sharing Contract (PSC) in Shanxi Province, People's Republic of China, is pleased to provide an update on operations.

Since the last release of October 30th, the company has fraced 7 additional wells, of which 6 are production wells and one an appraisal well, bringing the total number of wells fraced so far this year to 65.  Of this combined total, 57 are production wells and 8 are appraisal wells.

The company is continuing to drill new wells with 5 wells in the process of being drilled, one of which has been completed and is awaiting perforation.

As the company reported in its press release of October 30th, Critical Desorption Pressure (CDP) has been reached in a number of discrete locations, as a result of the ongoing de-watering process. 

Commenting, CEO Mike McElwrath said, "In the first seven days of November, our field team  fraced wells at a rate of one well per day while preparing additional wells for the fracing and pumping process.  And since mid-June when the first new wells began pumping, water production in the 1H Production Area has increased by approximately 96%.  The hard work of this year is now evident across much of the core production area, as we see initial gas in an increasing number of wells."

HOUSTON, Oct. 30, 2013 /PRNewswire/ -- Far East Energy Corporation (OTCBB:FEEC), Operator of the Shouyang Block Coalbed Methane (CBM) Production Sharing Contract (PSC) in Shanxi Province, People's Republic of China, today announced that an additional 21 wells have been commenced since July 31, bringing to 74 the total number of wells spudded in 2013. Additionally, 32 additional wells have been fraced since July 31, bringing to 58 the number of wells fraced in 2013. Of the 74 wells that have been spudded thus far in the 2013 drilling program, 47 are new production wells in the core 1H Production Area, and 27 are appraisal wells which have confirmed the lateral extension of the high-permeability and high gas content #15 coal seam across the Shouyang Block.

More importantly, in terms of making progress towards significant gas production from Shouyang, as of October 29, of the 58 wells fraced this year, 51 have been production wells in the 1H Production Area, including 28 fraced since the end of July 2013. In addition, 7 appraisal wells have been fraced this year, including 4 since July 31. Twelve further wells are scheduled to be fraced over the next two to three weeks, ten of which are production wells.

Commenting, CEO Michael McElwrath said, "The 2013 drilling program has already more than doubled that of any prior year in terms of wells spudded and will soon more than double the number of production wells fraced in any previous year. But the true measure lies in water produced as we strive to reach critical desorption pressure (CDP) across a broad area thereby achieving a meaningful gas saturation and attendant gas production. And since mid-June when the first new wells began pumping, water production in the 1H Production Area has increased by 80 to 85% while the number of wells on pump to date has increased by approximately 30% and CDP is now beginning to be achieved in a number of discrete areas."

 HOUSTON, Sept. 30, 2013 /PRNewswire/ -- Far East Energy Corporation (OTCBB:FEEC), the U.S. listed company that operates the Shouyang Block coalbed methane (CBM) Production Sharing Contract in Shanxi Province, Peoples Republic of China, in partnership with China United Coalbed Methane Co., Ltd., is pleased to announced the latest results of its intensive 2013 drilling program.

Since early June when the first group of wells were fraced, weekly water production across the Shouyang Block 1H core production area has risen 54%.   This increase in field water production results from the first 26 wells fraced and placed on pump in 2103. An additional 8 wells will soon be placed on pump, which will further add to the water production.

Commenting, CEO Michael R. McElwrath said, "We are exceptionally pleased to register such a strong rise in water production on the basis of the first 26 of our recently fraced wells being placed on pump across the past few months.  This increase in water production, coming as it does from only 26 wells, clearly indicates the effectiveness of our new fracs, and we look forward to seeing how the next group of wells will further contribute to the dewatering of the field.  Historically, this is exactly what we should expect to see from a high-permeability, high gas content CBM project.   As new wells continue to come on-stream, and water production continues to increase, sufficiently de-pressurizing the seam, the high levels of CBM gas contained in the seam should be released and produced."

Appraisal Wells Reveal 10 Meter Coal Seam Thickness
As the Company continues to analyze the results of the appraisal well drilling program, in the southern and eastern sections of the Shouyang Block, recent appraisal wells have revealed coal seam thickness as high as 10.3 meters in the target #15 coal seam, which compares to previously known ranges of 3-5 meters of thickness.   

McElwrath continued, "These recent appraisal well results further confirm the world-class nature of the Shouyang Block, as evidence of these thicker coals in the southeastern portion of Shouyang, coupled with high gas content, indicates excellent production potential. We hope to see this new data provide added uplift to our gas resources, and ultimately, to our valuation."

HOUSTON, May 28, 2013 /PRNewswire/ -- Far East Energy Corporation (OTCBB: FEEC) today announced that 7 new wells have been commenced in the 12 days since the last 2013 drilling program update release issued on Thursday, May 16, bringing to 23 the number of wells spudded in 2013. They are production wells 62-4D, 81-1D, 81-2D, 81-3D, and 165D and appraisal/exploration wells SYSE-09 and SYE-09. Additionally five wells reached total depth (TD) in the past 12 days. These are the 62-2V, 62-1D and 104D production wells, as well as the SYW-13 and SYW-09 appraisal wells. The Company noted that the 62-2V was drilled in only 12 days.

"On the 16th, we had 13 rigs in the field; now we have 18 rigs in the field with 4 more en-route," said CEO Michael McElwrath. "We have spudded 7 new wells in the past 12 days -- a testament to our entire team on the ground and their hard work."

Meanwhile, the Company's 2013 frac campaign has commenced, with 16 wells now ready to be fracture stimulated, 13 of which are production wells and 3 of which are appraisal wells.

Bob Hockert, Far East Energy China Country Manager commented, "We are excited the frac program is underway. A little over a week ago, our team had 12 wells ready to frac, and that number has now moved up to 16. By the time these 16 wells are stimulated, another 10 wells will be in the queue for fracing. Our goal is to continue the frac program uninterrupted until late October or November, ultimately comprising approximately 100 wells."

Hockert continued, "We have beefed up our capabilities in the field, adding 14 field personnel, including 5 drilling supervisors, a completions engineer, and several landmen. Additionally, a GIS mapping specialist and Land Manager have been added in Beijing. The results are reflected in the ability to spud 7 wells in 12 days."

HOUSTON, May 13, 2013 /PRNewswire/ -- Far East Energy Corporation (OTCBB:FEEC) announced today that Jennifer D. Whitleyhas been appointed as Chief Financial Officer to succeed Bruce N. Huff .  On May 7, 2013, Mr. Huff notified the Company that he was resigning as the Company's Chief Financial Officer for medical reasons. 

"It is with sadness that we announce Bruce Huff 's resignation and retirement," said Michael R. McElwrath , CEO and President of Far East Energy.  Continuing, McElwrath said, "As the Company's longest-tenured CFO, Bruce has made many tremendous contributions to Far East Energy.  He joined the Company in May of 2004, and while serving as CFO saw the company successfully acquire its lynchpin Shouyang concession from ConocoPhillips, was a key contributor to many successful fundraises that funded the early exploration and initial development of our high permeability discovery in Shouyang, and tirelessly fulfilled a very demanding role as our CFO.    

"Bruce was also responsible for bringing Jennifer Whitley to the Company.  His value to the Company and its shareholders cannot be over-estimated.  I am pleased that Jennifer has been able to take on the mantle of CFO during this busy period for the company; her previous experience as Finance Director of a UK listed oil & gas company and CFO of a US mid-stream international energy company provide a strong background for this role.  Given events of the past year in which Jennifer played an integral role, the transition will be seamless."

McElwrath continued, "We wish Bruce and his family great happiness in his retirement.  The Board of Directors and the entire staff � from corporate headquarters to the Beijing staff as well as our field personnel, join in thanking Bruce for the key role he played in the history of Far East."

Ms. Whitley has served as the interim Chief Financial Officer of the Company since February 2013 and Director of Finance of the Company since January 2011.  Prior to joining the Company, Ms. Whitley served as the Chief Financial Officer of Zero Emission Energy Plants Ltd, a mid-stream international energy company focused in Louisiana and China, from 2008 to 2010.  From 2006 to 2008, Ms. Whitley served as the Finance Director of Global Energy Development PLC where she was responsible for all of the financial, accounting, and administrative matters for the UK listed company's international oil exploration and production operations. Previously, Ms. Whitley worked at Harken Energy Corporation and on the audit staff of Ernst & Young LLP.

Mrs. Whitley is a Certified Public Accountant and serves on the board of Zero Emission Energy Plants, as well as the board of the Houston Chapter of Financial Executives International.  She also serves as Chairman of the Youth Development Center and on the Advisory Board of MentorConnect.  She is a member of the Texas Society of CPAs and has previously served on the Business Advisory Council of Pepperdine University.  In 2006, Mrs. Whitley received the Change the World Award from her university in honor of her not-for-profit work with children in Houston's under-served neighborhoods.

HOUSTON, May 10, 2013 /PRNewswire/ -- Far East Energy Corporation (OTCBB:FEEC) today announced that appraisal well SYS03 has reached total depth; preliminary gas content has been determined for the SYE06 appraisal well; and, the 108D, an additional production well has spudded, bringing to 14 the number of wells spudded thus far in 2013.

The focus for the company remains the drilling and well-fracing program that management detailed in its conference call held April 18, 2013, and which was discussed further in its operations update press release of May 6, 2013.

As part of the company's continuing appraisal well program, the SYS03, which is located in the east to southeast portion of the Shouyang Block, completed drilling to a total depth of 1,471 meters (or 4,826 feet) and penetrated the #15 coal seam revealing a total coal seam thickness of 3.77 meters (or approximately 12.4 feet).  The coal was cored in its entirety and seven samples have been collected for desorption testing, which will allow for an assessment of gas content. Wire-line logging and open-hole testing will shortly be completed with estimates of permeability to follow.

The SYS03 well is a good control point between the P18 and SYS05 wells, verifying good continuity and stability of the targeted #15 coal seam.  This encouraging result from the SYS03 greatly enhances confidence in the potential of the east and southeast portions of the Shouyang Block.

Meanwhile, results from the testing of core samples from the SYE06 appraisal well indicate an initial gas content of 592 standard cubic feet per ton (scf/t) or 16.76 cubic meters per ton (m³/t) in the #15 coal seam and 383 scf/t or 10.84 m³/t in the #9 coal seam.  This well is approximately 5 kilometers due east of the P18 appraisal well, and continues to confirm high gas content across virtually all of the Shouyang Block.

CEO Michael McElwrath said, "I am very pleased with the progress we have made this year on the Shouyang Block.  As previously announced, our drilling contractors are in the process of mobilizing up to twenty-five rigs dedicated to the Shouyang Block and we are in final preparations for the kickoff of the frac program, with 10 wells now awaiting fracing.  The operations team in China is wholly focused on delivery of the Company's 2013 drilling program, and we are encouraged by the results of yet another appraisal well, the SYE06, that affirms high gas content in our targeted coal seams across an ever-expanding area."

Gas sales for Q1 2013 were 66.9 MMcf, an increase of 40% over the same period in 2012.  Average gas price for Q1 2013 was $6.47/Mcf, inclusive of the various state and provincial subsidies and VAT refunds.  This compares to an average of $6.45/Mcf in Q1 2012.

Due to increased demand for power in the vicinity of our 1H Pilot Area, the electric grid in that area is being upgraded.  This increased demand for electricity is indicative of the rapid growth of energy demand in the region, for manufacturing facilities, chemical plants, and for the gas-fired power generation facility and LNG facilities being built adjacent to our 1H Pilot Area.  As a result of this ongoing upgrade, since March 2013, the company has been experiencing intermittent power supply interruptions to its compressors in the Shouyang Block, as the power grid is being upgraded.  In order to lessen the impact of these interruptions, the company's field personnel are in the process of procuring and installing company-owned gas-fired generators to ensure power continuity at its sales point.

As announced on January 16, 2013, the company completed a $60 million private debt placement during the first quarter, which funds a full production and appraisal well program through 2013. 

HOUSTON, April 16, 2013 /PRNewswire/ -- Far East Energy Corporation (OTCBB: FEEC) today announced the release of an updated independent engineering report prepared by RISC Operations Pty Ltd (RISC), an internationally recognized independent petroleum advisory evaluation and valuation firm based in Perth, Australia, with respect to its coalbed methane (CBM) project located in the Shouyang block in Shanxi Province, China as of December 31, 2012.  The reserves estimates in the updated RISC report were prepared in accordance with the standards recognized by the Society of Petroleum Engineers (SPE) in the Petroleum Resources Management System (PRMS).

The updated RISC report indicates that the net total proved reserves under PRMS standards are now approximately 303.7 billion cubic feet (Bcf), with estimated future net cash flow, on an NPV10 basis, of approximately US$1.1 billion.  In addition, the updated RISC report estimates the net total proved and probable reserves under PRMS standards are now approximately 440.8 Bcf, with estimated future net cash flow, on an NPV10 basis, of approximately US$2.0 billion.  And the updated RISC report estimates the net total proved, probable and possible reserves  to be approximately 552.3 Bcf, with an estimated NPV10 of US$2.8 billion.

HOUSTON, Oct. 5, 2012 /PRNewswire/ -- Far East Energy Corporation (OTCBB:FEEC) previously announced the intention of Far East Energy (Bermuda), Ltd., a wholly owned subsidiary of Far East Energy Corporation, to offer, subject to market conditions, senior secured notes due 2017 in a private placement not registered under the Securities Act of 1933, as amended (the "Securities Act").  

Far East Energy (Bermuda), Ltd. and its management, due to applicable rules and regulations, are prohibited from making further detailed statements related to the offering at this time. However, Far East Energy (Bermuda), Ltd. and its management continues to work with their advisors and potential investors to complete the transaction.

On July 19, 2012, Far East Energy (Bermuda), Ltd. (“FEEB”), a wholly-owned subsidiary of Far East Energy Corporation (the “Company”) received a drawdown of $2.6 million (the “Advance”) pursuant to the $25 million Facility Agreement, dated as of November 28, 2011 and as amended as of May 21, 2012 (as amended, the “Facility Agreement”), with Standard Chartered Bank, as lender, and the Company, as guarantor. In connection with the Advance, FEEB also elected to extend the term of the Facility Agreement by three months, which extended the term of the Facility Agreement to November 28, 2012. FEEB intends to use the proceeds of the Advance to fund certain expenses under the Facility Agreement and for general corporate purposes. After giving effect to the Advance, borrowings under the Facility Agreement will have an outstanding principal amount of $22.9 million with accrued and unpaid interest of $0.4 million. FEEB may, from time to time, draw additional funds under the Facility Agreement up to the credit limit stated therein. All terms and conditions under the Facility Agreement, including the applicable interest rate, remain unchanged.

The foregoing description of the Facility Agreement does not purport to be complete and is qualified in its entirety by reference to the Facility Agreement attached as Exhibit 10.1 to the Form 8-K filed on December 2, 2011, and the amendment thereto attached as Exhibit 10.1 to the Form 8-K filed on May 25, 2012, which are incorporated by reference herein.

Item 1.01. Entry into a Material Definitive Agreement

On June 15, 2012, Far East Energy (Bermuda), Ltd. (“FEEB”), a wholly-owned subsidiary of Far East Energy Corporation, was notified that the Ministry of Commerce of the People's Republic of China approved its modification agreement (the “Modification Agreement”) to the Production Sharing Contract (the “Yunnan PSC”) for Exploitation of Coalbed Methane Resources for the Enhong and Laochang Area in Yunnan Province, the People’s Republic of China, dated January 25, 2002, between China United Coalbed Methane Corporation Ltd. and FEEB. Under the terms of the Modification Agreement, FEEB will relinquish the Enhong Block while retaining the 483 square kilometer Laochang Block (approximately 119,340 acres). The Modification Agreement extends the exploration period of the Yunnan PSC to December 31, 2013