MODIFICATION AGREEMENT FOR PRODUCT SHARING CONTACT FOR EXPLOITATION OF COALBED METHANE RESOURCES IN ENHONG AND LAOCHANG, YUNNAN PROVINCE, THE PEOPLE?S REPUBLIC OF CHINA

Exhibit 10.1

MODIFICATION AGREEMENT
FOR
PRODUCT SHARING CONTACT
FOR
EXPLOITATION OF COALBED METHANE RESOURCES
IN ENHONG AND LAOCHANG,
YUNNAN PROVINCE, THE PEOPLE’S REPUBLIC OF CHINA

WHEREAS, China United Coalbed Methane Corporation Ltd. (hereafter abbreviated as “CUCBM”) entered into a Product Sharing Contract for Exploitation of Coalbed Methane Resources in Enhong and Laochang areas, Yunnan Province, the People’s Republic of China dated the 3rd day of December, 2002 (referred to below as “Contract”), with Far East Energy Corporation (referred to below as “FEEC”). The Contract was approved by the Ministry of Foreign Trade and Economic Co-operation on December 16, 2002 and began implementation from January 1, 2003; and

WHEREAS, the exploration period of the Contract, as provided by Article 4.2 of the Contract, expires on December 31, 2005, but both Parties desire that the exploration period of the Contract shall be extended from three (3) years to four and half (4.5) years in accordance with Article 4.3 of the Contract.

NOW, THEREFORE, CUCBM and FEEC mutually agree to modify the Contract as follows:

In Article 4.2, the sentence “The exploration period, beginning on the Date of Commencement of the Implementation of the