RELEASE AGREEMENT

Exhibit 10.1

RELEASE AGREEMENT

This Release Agreement (the “Agreement”) is among Jeff Brown (“Executive”), 31 Filigree Pines, Houston, Texas 77382, and Far East Energy Corporation and Far East Energy (Bermuda) Ltd. (individually and collectively “Far East Energy” or the “Company”). This Agreement is effective on the eighth day after it is signed by Executive (“Effective Date”).

Section 1. Termination of Employment

1.1 Executive voluntarily resigns from his employment and each and every position of Far East Energy effective May 16, 2007 (the “Resignation Date”). Executive acknowledges that his voluntary resignation alleviates Far East Energy from paying any severance benefits to him under the terms of the parties’ employment agreement dated October 29, 2005 (the “Employment Agreement”). Executive’s last day of in-office duties shall be May 14, 2007. After the Resignation Date, Executive shall not accrue nor shall he be eligible or entitled to accrue any additional benefits, including 401K contributions, retirement benefits or vacation benefits, to which he may previously have been eligible or entitled and that are made available to Far East Energy employees from time to time or which were provided to Executive pursuant to the Employment Agreement. On or before the Company’s next regularly schedule payday after the Resignation Date, Far East Energy will provide to Executive his final pay for all work performed through the Resignation Date.

1.2 In consideration for the release of all claims and other agreements by Executive provided for herein, Far East Energy will pay Executive the following severance benefits: Far East Energy shall pay to Executive on June 29, 2007, Eighty Thousand Dollars and no/100 ($80,000), less all applicable withholdings, (referred to herein as the “Separation Payment”). Executive agrees that the Separation Payment amount is new and separate consideration and is above and beyond any amounts to which he may be, or may have previously been, entitled. Additionally, the Executive will be allowed to stay in the apartment housing at the expense of Far East Energy until June 30, 2007 at the latest. The Executive will be provided one driver and car for regular hours until June 30, 2007 for your personal use, provided that no overtime shall be incurred by the driver. The Company will pay Executive’s relocation costs to Houston, Texas, not to exceed six thousand dollars ($6,000). The Company will pay to Executive the cost of two coach class tickets to return to Houston, Texas. The Executive will be provided the use of two cellular phones in China through the earlier of his departure date from China or June 30, 2007. The Executive will be provided income tax preparation services for 2007 by a preparer mutually agreed upon by both parties at a cost not to exceed $300.

1.3 In exchange, Executive hereby fully and finally releases Far East Energy (including all parents, subsidiaries, and affiliated entities), its shareholders, directors, officers, principals, vice-principals, partners, agents, employees, legal counsel and other legal representatives of every kind (collectively the “Released Parties”) from any and all claims, actions, demands, and/or causes of action, of whatever kind or character, whether now known or unknown, arising

from, relating to, or in any way connected with, facts or events occurring on or before the Effective Date of this Agreement. Executive agrees that this Agreement specifically includes, without limitation, a release and waiver of any personal injury claims, negligence claims, contractual claims (express or implied), wrongful discharge claims, and claims of discrimination, retaliation and harassment of every possible kind, including but not limited to, claims on the basis of race, color, sex, national origin, religion, disability, age (under the Age Discrimination in Employment Act (the “ADEA”) or any other statute), and any related attorney’s fees and costs claims, if any, that he may have against Released Parties. Executive agrees not to make comments that disparage the Released Parties and/or the business of the Released Parties. Executive agrees not to pursue future employment with Far East Energy or its affiliates. Executive is not relying upon any representations by the Released Parties legal counsel in deciding to enter into this Agreement, and Executive waives and releases the Released Parties from any claims that this Agreement was procured by fraud or signed under duress or coercion so as to make the Agreement not binding. Executive understands and agrees that by signing this Agreement he is giving up the right to pursue any legal claims that he may have against the Released Parties. Provided, nothing in this provision of the Agreement shall be construed to prohibit Executive from challenging the validity of the ADEA release in this Section of the Agreement or from filing a charge or complaint with the Equal Employment Commission or other appropriate agency or from participating in any investigation or proceeding conducted by the Equal Employment Opportunity Commission or other appropriate agency. However, Far East Energy will assert all such claims have been released in a final binding release agreement.

1.4  IMPORTANT INFORMATION REGARDING ADEA RELEASE . Executive understands and agrees that:

1.5 Executive agrees that any and all sums paid or provided to him pursuant to Section 1.2 will be forfeited and become immediately due and payable to Far East Energy and that Far East Energy will have no further obligations to Executive under Section 1.2 in the event that Executive asserts any claim, demand or cause of action, including any cause of action for indemnity and contribution or third-party action, arising out of, resulting from, or in any way related to any of the claims or potential claims encompassed within this Agreement, or any action to set aside, invalidate or avoid this Agreement, except as a result of the Company’s breach of this Agreement. Executive further agrees that a breach of the covenant set forth in Section 1.3 will entitle Far East Energy and its successors and assigns to a full recovery in an action for damages, including, but not limited to, recovery of its or their costs, expenses and attorneys’ fees for investigation, prosecution or defense of any action brought in breach of this covenant. Such recover of monies shall not otherwise affect the enforceability of the Agreement or of other individual promises contained in this Agreement. However, nothing in this paragraph shall prevent Executive from challenging the enforceability of the ADEA waiver.

1.6 Acknowledgement of Restrictive Covenants in Employment Agreement . Executive acknowledges his specific agreements and obligations contained within and does hereby reaffirm his agreement to comply with Sections 3(c),(d), and (e); 10; 12; 13; and 19 of the Employment Agreement.

1.7 Human Resources Matters . Executive further agrees to provide Far East Energy prior to June 15, 2007, with a written declaration in the form set forth as the Attachment A, that Executive has report