EX-10.1






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 Contract, shall be divided into two (2) phases and shall consists of three
(3) consecutive Contract Years,........” shall be modified to read “The exploration period, beginning
on the Date of Commencement of the Implementation of the Contract, shall be divided into two (2)
phases and shall consist of four and half (4.5) consecutive Contract Years, ....”



In Article 4.2, the sentence “the first phase of one and one half (1.5) Contract Years (the first
Contract Year through the sixth month of the second Contract Year)... shall be modified to read “the
first phase of two and one quarter (2.25) Contract Years (the first Contract Year through the third
month of the third contract year)....”



In Article 4.2, the sentence “the second phase of one and one half (1.5) Contract Years (the
seventh month of the second Contract Year through the end of the third Contract Year)” shall be
modified to read “the second phase of two and one quarter (2.25) Contract Years (the fourth month
of the third Contract Year through the sixth month of the fifth Contract Year)....”



All other provisions of the Contract shall remain unchanged.



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This Modification Agreement shall be written in both Chinese and English in accordance with the
provisions of Article 28.1 of the Contract, and both versions shall have equal force and effect.



This Modification Agreement, as a supplementary document to the Contract, shall be an integral part
of the Contract and shall be effective from the day of the approval by the Ministry of Commerce of
the People’s Republic of China.



IN WITNESS WHEREOF, this Modification Agreement is signed on this 20th day of October, 2005 by the
authorized representative of each Party hereto.



CHINA UNITED COALBED METHANE CORPORATION, LTD.



By:



Name: /s/ Jie Mingxun



Title:



FAR EAST ENERGY CORPORATION




By: /s/ Michael R. McElwrath





Name: Michael R. McElwrath

Title: CEO and President




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