Document:

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                                                                    EXHIBIT 10.7

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT ("Agreement") is made on this 1st day of May,
2004, by and between Far East Energy Corporation, a Nevada corporation
("Company"), and Bruce N. Huff, a resident of Texas ("Executive").

                                    PREMISES

         WHEREAS, Company desires to employ Executive as its Chief Financial
Officer, pursuant to the terms and conditions hereof; and

         WHEREAS, Executive possesses experience as a member of executive
management of companies in the oil and gas industry, and desires to serve as
Company's Chief Financial Officer; and

         WHEREAS, in consideration for Executive's future services as Chief
Financial Officer of the Company, Company desires to grant to Executive
non-qualified options to purchase shares of its common stock (the "Common
Stock"), and Executive desires to receive partial payment for his services in
options to purchase shares of Common Stock.

                                    AGREEMENT

         NOW THEREFORE, with the above provisions incorporated herein by this
reference, in consideration of the mutual promises contained herein, the
benefits to be derived by each party hereunder and other good and valuable
consideration, the sufficiency of which is hereby expressly acknowledged, the
parties hereto mutually agree as follows:

3.       Employment. Company hereby agrees to employ Executive and Executive
         hereby agrees to accept full time employment as Chief Financial Officer
         of Company, upon the terms and conditions set forth in this Agreement.

4.       Term. The employment of Executive by Company pursuant to this Agreement
         shall commence on May 1, 2004, and end Five (5) years hereafter, unless
         sooner terminated pursuant to Section 4 below (hereinafter referred to
         as the "Service Period").

5.       Compensation. In consideration for the services to be rendered by
         Executive, the Company shall compensate Executive as follows (such
         compensation and benefits being hereinafter referred to as
         "Compensation Benefits"):

6.       Base Salary. Company shall pay to Executive a base annual salary of
         $160,000 during the Service Period (such amount, as it may be increased
         from time to time, may sometimes hereinafter be referred to as "Base
         Salary"). Company shall conduct a
<PAGE>
         review of Executive twelve (12) months from the date of this Agreement
         at which time Executive's Base Salary may be increased.

                           B. Signing Bonus. As a material inducement to
                  Executive to accept the position of Chief Executive Officer,
                  Company shall pay to Executive a signing bonus in the amount
                  of $25,000.00 immediately upon the effective date of this
                  Agreement.

                           C. Bonus. Executive shall be eligible to receive
                  annual bonuses of approximately fifteen to twenty-five percent
                  of his then current base salary, subject to management review.

                           D. Insurance. Company shall pay the full cost of
                  health care insurance for Executive and Executive's immediate
                  family. During the Service Period, Company shall provide
                  Executive with any other benefits that Company makes available
                  to other similarly situated Executives.

                           E. Common Stock. As additional compensation, Company
                  shall grant to Executive, pursuant to the Stock Option
                  Agreement attached hereto as Exhibit A and incorporated herein
                  by reference, a non-qualified option to purchase 500,000
                  shares ("Shares") of Common Stock. The Stock Option Agreement
                  will include certain registration rights for the benefit of
                  the Executive.

                           F. Vacation. Executive shall be entitled to vacation
                  befitting that of a senior executive, which in no event shall
                  be less than four weeks per year.

7.       Termination. Executive's employment hereunder shall terminate as a
         result of any of the following events:

                           8. Executive's death;

9.       Executive shall be unable to perform his duties hereunder for a
         continuous period of at least six months or an aggregate of nine months
         during any continuous twelve month period by reason of illness,
         accident or other physical or mental disability, as verified by a
         licensed physician mutually selected by the Company and Executive
         ("Disability");

10.      Termination by Executive upon 30 days advance notice in writing to
         Company; or termination by Company by giving 30 days advance notice in
         writing to Executive;

11.      Termination by Company for Cause, where "Cause" shall mean: (i) the
         final non-appealable conviction of Executive of a felony; (ii) gross
         misappropriation or theft of company funds; or (iii) complete and total
         abandonment of duties for thirty (30) consecutive days (other than for
         reason of disability).

         5. Severance Pay. As a material inducement to Executive to secure his
services as Chief Financial Officer, Company agrees that in the event that
Executive is terminated by Company for any reason (other than for "Cause" as
defined herein below),
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or is terminated after a Change in Control, Company shall immediately pay to
Executive a single lump-sum severance or separation payment of Fifty Thousand
Dollars ($50,000). "Cause" shall mean gross misappropriation or theft of company
funds, conviction of a felony, or complete and total abandonment of duties for
thirty consecutive days (other than for reason of disability). Executive shall
retain all of his rights in, and ownership of, all stock options vested as of
the date of termination, or that would vest within thirty (30) days following
the date of termination or separation, or contractual default.

         6. Representations and Warranties. Executive hereby represents and
warrants to the Company that (i) the execution, delivery and performance of this
Agreement by Executive does not and shall not conflict with, breach, violate or
cause a default under any contract, agreement, instrument, order, judgment or
decree to which Executive is a party or by which Executive is bound, and (ii)
Executive is not a party to or bound by any employment agreement, noncompetition
agreement or confidentiality agreement with any other person or entity which in
any way may restrict, impair or limit the performance of his duties hereunder.

         7. Duties. During the term of this Agreement, Executive shall initially
serve as the Senior Vice President of Exploration and Production of Company.
Executive shall perform the tasks and have the rights, powers and obligations
normally associated with the office of Senior Vice President of Exploration and
Production, including such other offices or positions that Company's board of
directors ("Board of Directors") shall reasonably request.

         8. Covenant Not to Compete. In exchange for the various consideration
provided herein, during the term of this Agreement and for a period of one (1)
year following the date of termination, in the event Executive leaves or
abandons his position with Company otherwise than for Good Reason, then
Executive will not compete with Company through involvement on any project that
Company is then pursuing, or did pursue within the one hundred twenty (120) days
prior to Executive's departure from Company (a "Competing Project"). In the
event that Executive is hired as an Executive or consultant of an entity that is
involved in a Competing Project, Executive shall recuse himself from and not
participate in, directly or indirectly, any activities of such entity with
respect to the evaluation, development or operation of the Competing Project.

         9. Non-Disclosure of Information. In exchange for the various
consideration provided herein, Executive will not, directly or indirectly,
during the term of this Agreement and for a period of one (1) year after the
termination of this Agreement, disclose to any person not authorized by Company
to receive or use such information, except for the sole benefit of Company, any
of Company's confidential or proprietary data, information, or techniques, or
give to any person not authorized by Company to receive any information that is
not generally known to anyone other than Company or that is designated by
Company as "Limited," "Private," or "Confidential," or similarly designated.

         10. Expenses. In accordance with Company's published Expense
Reimbursement Policy, Executive may incur reasonable expenses for promoting or
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developing Company's business, including reasonable expenses for entertainment,
travel, and similar items. In accordance with Company's published Expense
Reimbursement Policy, Company will reimburse Executive for all such expenses
upon Executive's periodic presentation of an itemized account of such
expenditures.

         11. Entire Agreement. This Agreement constitutes the entire
understanding between the parties, and there are no covenants, conditions,
representations, or agreements, oral or written, of any nature whatsoever, other
than those herein contained.

         12.      Severability. If any term, condition, clause, or provision of
                  this Agreement shall be deemed to be void or invalid, then
                  that term, condition, clause, or provision shall be stricken
                  from this Agreement to the extent it is held to be void or
                  invalid, and in all other respects this Agreement shall be
                  valid and in full force and operation.

         13.      Notices. For the purpose of this Agreement, notices and all
                  other communications provided for in this Agreement shall be
                  in writing and shall be deemed to have been duly given when
                  received at the addresses written below on (i) the third
                  business day after the date when sent by certified or
                  registered mail; (ii) the next business day after the date
                  sent by guaranteed overnight courier; or (iii) the date sent
                  by telecopier or delivered by hand, in each case, to the
                  addresses set forth below:

                  If to Company:    Far East Energy Corporation
                                    400 North Sam Houston Pkwy., Suite 205
                                    Houston, Texas 77060
                                    Attention: Michael R. McElwrath
                                    (713) 586-1899

                      With a Copy to:   Woltjen Law Firm
                                        Attn: Kevin S. Woltjen
                                        4144 N. Central Expwy., Suite 410
                                        Dallas, Texas 75204
                                        (214) 742-5555

                  If to Executive: Bruce N. Huff
                                   1931 Winding Hollow Drive
                                   Katy, Texas 77450

         or to such other addresses as the parties may specify in writing.

         14.      Arbitration. Any controversy or claim arising out of or
                  relating to this Agreement or the breach of it, shall be
                  settled by arbitration in accordance with the rules of the
                  American Arbitration Association, and judgment on the award
                  rendered may be entered in any court having jurisdiction.

         15.      Governing Law and Venue. This Agreement shall be governed by,
                  and construed in accordance with, the laws of the State of
                  Texas without reference
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                  to the conflict of laws principles thereof. In the event any
                  dispute regarding this Agreement arises between the Parties
                  and is not resolved at arbitration, such dispute shall be
                  brought in a proper jurisdiction located within Harris County,
                  Texas.

         16.      Attorney's Fees. If any action at law or in equity, including
                  an action for declaratory relief or any form of dispute
                  resolution, is brought to enforce or interpret the provisions
                  of this Agreement, the prevailing party shall be entitled to
                  recover actual attorney's fees, court costs, and other costs
                  incurred in proceeding with the action from the other party.
                  The attorney's fees, court costs or other costs, may be
                  ordered by the fact finder, in any decision of any action
                  described in this section or may be enforced in a separate
                  action brought for determining attorney's fees, court costs,
                  or other costs. In the event Company is represented by
                  in-house counsel and Company prevails in any such action or
                  dispute resolution, all parties agree that Company may recover
                  attorney's fees incurred by that in-house counsel in an amount
                  equal to that attorney's normal fees for similar matters, or,
                  should that attorney not normally charge a fee, by the
                  prevailing rate charged by attorneys with similar background
                  in that legal community.

         17.      Assignment. This Agreement shall not be assignable by any
                  party to this Agreement, except upon the written consent of
                  all parties hereto. Executive shall not have the right to
                  pledge, encumber, or dispose of the right to receive any
                  Compensation Benefits under this Agreement, which Compensation
                  Benefits and the right thereto are expressly declared to be
                  non-assignable and nontransferable and, in the event of any
                  attempted assignment or transfer, Company shall have no
                  further liability hereunder.

         18.      Counterparts. This Agreement may be executed in two
                  counterparts, each of which shall be deemed an original but
                  both of which together shall constitute one and the same
                  agreement.

         19.      Right to Counsel. Executive hereby agrees that Company has
                  advised and encouraged him to retain his own counsel and that
                  he has had full opportunity to retain such counsel to review
                  this document and advise him of the terms and conditions set
                  forth herein.
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         IN WITNESS WHEREOF, the parties hereto have executed this Agreement
under seal the day and year first above written.

FAR EAST ENERGY CORPORATION,                     BRUCE N. HUFF
a Nevada corporation

 /s/ Michael R. McElwrath                        /s/ Bruce N. Huff
-----------------------------------              --------------------------
Michael R. McElwrath, President                  Bruce N. Huff<PAGE>
                                                                    EXHIBIT 10.8

                                ESCROW AGREEMENT

      This Escrow Agreement dated as of the effective date (the "Effective
Date") set forth on schedule 1 attached hereto ("Schedule 1") by and among the
purchaser identified on Schedule 1 (the "Purchaser"), the seller identified on
Schedule 1 (the "Seller") and J.P. Morgan Trust Company, N.A., as escrow agent
hereunder (the "Escrow Agent").

WHEREAS, the Purchaser and the Seller have agreed to deposit in escrow certain
funds and wish such deposit to be subject to the terms and conditions set forth
herein.

NOW THEREFORE, in consideration of the foregoing and of the mutual covenants
hereinafter set forth, the parties hereto agree as follows:

1. APPOINTMENT. The Purchaser and Seller hereby appoint the Escrow Agent as
their escrow agent for the purposes set forth herein, and the Escrow Agent
hereby accepts such appointment under the terms and conditions set forth herein.

2. ESCROW FUND. Simultaneous with the execution and delivery of this Escrow
Agreement, the Purchaser is depositing with the Escrow Agent the sum indicated
as the escrow deposit on Schedule 1 (the "Escrow Deposit"). The Escrow Agent
shall hold the Escrow Deposit and, subject to the terms and conditions hereof,
shall invest and reinvest the Escrow Deposit and the proceeds thereof (the
"Escrow Fund") as directed in Section 3.

3. INVESTMENT OF ESCROW FUND. During the term of this Escrow Agreement, the
Escrow Fund shall be invested and reinvested by the Escrow Agent in the
Investment as indicated and set forth on Schedule 1 or such other investments as
shall be directed in writing by both Purchaser and Seller and as shall be
acceptable to the Escrow Agent. All investment orders involving U.S. Treasury
obligations, commercial paper and other direct investments will be executed
through JPMorgan Fleming Asset Management (JPMFAM), in the investment management
division of JPMorgan Chase. Subject to principles of best execution,
transactions are effected on behalf of the Escrow Fund through broker-dealers
selected by JPMFAM. In this regard, JPMFAM seeks to attain the best overall
result for the Escrow Fund, taking into consideration quality of service and
reliability. An agency fee will be assessed in connection with each transaction.
Periodic statements will be provided to Purchaser and Seller reflecting
transactions executed on behalf of the Escrow Fund. The Purchaser and Seller,
upon written request, will receive a statement of transaction details upon
completion of any securities transaction in the Escrow Fund without any
additional cost. The Escrow Agent shall have the right to liquidate any
investments held in order to provide funds necessary to make required payments
under this Escrow Agreement. The Escrow Agent shall have no liability for any
loss sustained as a result of any investment in an investment indicated on
Schedule 1 or any investment made pursuant to the instructions of the parties
hereto or as a result of any liquidation of

<PAGE>

any investment prior to its maturity or for the failure of the parties to give
the Escrow Agent instructions to invest or reinvest the Escrow Fund.

4. DISPOSITION AND TERMINATION. This Escrow Agreement will fulfill the surety
bond requirement previously contracted for by the Purchaser and Seller in two
farmout agreements (collectively the "Farmout Agreements") entered into on June
17, 2003, one covering the assignment of a participating interest under the
Qinnan PSC and the second covering the assignment of a participating interest
under the Shouyang PSC. Section 6.4 of both Farmout Agreements requires the
Purchaser to provide work performance guarantees in the form of a surety bond of
a total of $1 million for the first phase of the exploration period covering
costs to be incurred as required under Article 6.5 of the Qinnan Farmout and for
the first and second phases of the exploration period covering costs to be
incurred as required under Article 6.7 of the Shouyang Farmout. Such surety bond
must be submitted within thirty (30) days after the Approval Date, which is the
date on which the Ministry of Commerce for the People's Republic of China
approves the assignment of the participating interests as detailed in the
Farmout Agreements. The Approval Date is March 22, 2004 since the Minister of
Commerce approved the assignments on such date, and as a consequence, the surety
bond must be submitted on May 14, 2004, which is also the Effective Date of this
Escrow Agreement.

In the event the Purchaser is in default, as described in Article 8.1 of the
Farmout Agreements, in connection with its obligations under Article 6.5 of the
Qinnan Farmout and/or Article 6.7 of the Shouyang Farmout, the Seller shall have
the right to give written instructions to the Escrow Agent, directing the Escrow
Agent to release to the Seller the amount of the Escrow Funds required to fully
satisfy the remainder of such obligations under the Farmout Agreements. Such
written instructions shall (1) provide the details of the amount and the reasons
for the default under Article 8.1 of the Farmout Agreements and (2) be given by
the Seller by one of the Seller's authorized representatives as set forth on
Schedule 2. Such released Escrow Funds shall be directed and utilized by the
Seller to satisfy the Purchaser's obligations in accordance with Article 6.5 of
the Qinnan Farmout and Article 6.7 of the Shouyang Farmout, and the balance of
the Escrow Funds, if any, shall be refunded to the Purchaser. If the Purchaser
fully satisfies its obligations under the Farmout Agreements, the Escrow Agent
shall release the Escrow Funds to the Purchaser pursuant to the joint written
instructions of the Purchaser by one of Purchaser's authorized representatives
as set forth on Schedule 2 and of the Seller by one of the Seller's authorized
representatives as set forth on Schedule 2. Upon delivery of all of the Escrow
Funds by the Escrow Agent, this Escrow Agreement shall terminate, subject to the
provisions of Section 8.

5. ESCROW AGENT. The Escrow Agent undertakes to perform only such duties as are
expressly set forth herein and no duties shall be implied. The Escrow Agent
shall have no liability under and no duty to inquire as to the provisions of any
agreement other than this Escrow Agreement. The Escrow Agent may rely upon and
shall not be liable for acting or refraining from acting upon any written
notice, instruction or request furnished to it hereunder and believed by it to
be genuine and to have been signed or presented by the proper party or parties.
The Escrow Agent shall be under no duty to inquire into or

<PAGE>

investigate the validity, accuracy or content of any such document. The Escrow
Agent shall have no duty to solicit any payments which may be due it or the
Escrow Fund. The Escrow Agent shall not be liable for any action taken or
omitted by it in good faith except to the extent that a court of competent
jurisdiction determines that the Escrow Agent's gross negligence or willful
misconduct was the primary cause of any loss to the Purchaser or Seller. The
Escrow Agent may execute any of its powers and perform any of its duties
hereunder directly or through agents or attorneys (and shall be liable only for
the careful selection of any such agent or attorney) and may consult with
counsel, accountants and other skilled persons to be selected and retained by
it. The Escrow Agent shall not be liable for anything done, suffered or omitted
in good faith by it in accordance with the advice or opinion of any such
counsel, accountants or other skilled persons. In the event that the Escrow
Agent shall be uncertain as to its duties or rights hereunder or shall receive
instructions, claims or demands from any party hereto which, in its opinion,
conflict with any of the provisions of this Escrow Agreement, it shall be
entitled to refrain from taking any action and its sole obligation shall be to
keep safely all property held in escrow until it shall be directed otherwise in
writing by all of the other parties hereto or by a final order or judgment of a
court of competent jurisdiction. Anything in this Escrow Agreement to the
contrary notwithstanding, in no event shall the Escrow Agent be liable for
special, indirect or consequential loss or damage of any kind whatsoever
(including but not limited to lost profits), even if the Escrow Agent has been
advised of the likelihood of such loss or damage and regardless of the form of
action.

6. SUCCESSION. The Escrow Agent may resign and be discharged from its duties or
obligations hereunder by giving 10 days advance notice in writing of such
resignation to the other parties hereto specifying a date when such resignation
shall take effect. The Escrow Agent shall have the right to withhold an amount
equal to any amount due and owing to the Escrow Agent, plus any actual costs and
expenses incurred by the Escrow Agent in connection with the termination of the
Escrow Agreement. Any corporation or association into which the Escrow Agent may
be merged or converted or with which it may be consolidated, or any corporation
or association to which all or substantially all the escrow business of the
Escrow Agent's corporate trust line of business may be transferred, shall be the
Escrow Agent under this Escrow Agreement without further act.

7. FEES. The Purchaser agrees to (i) pay the Escrow Agent upon execution of this
Escrow Agreement and from time to time thereafter reasonable compensation for
the services to be rendered hereunder, which unless otherwise agreed in writing
shall be as described in Schedule 1 attached hereto, and (ii) pay or reimburse
the Escrow Agent upon request for all expenses, disbursements and advances,
including reasonable attorney's fees and expenses, incurred or made by it in
connection with the preparation, execution, performance, delivery, modification
and termination of this Escrow Agreement.

8. INDEMNITY. The Purchaser and the Seller shall jointly and severally
indemnify, defend and save harmless the Escrow Agent and its directors,
officers, agents and employees (the "indemnitees") from all loss, liability or
expense (including the fees and expenses of in house or outside counsel) arising
out of or in connection with (i) the Escrow Agent's execution and performance of
this Escrow Agreement, except in the case

<PAGE>

of any indemnitee to the extent that such loss, liability or expense is due to
the gross negligence or willful misconduct of such indemnitee, or (ii) its
following any instructions or other directions from the Purchaser or the Seller,
except to the extent that its following any such instruction or direction is
expressly forbidden by the terms hereof. The parties hereto acknowledge that the
foregoing indemnities shall survive the resignation or removal of the Escrow
Agent or the termination of this Escrow Agreement. The parties hereby grant the
Escrow Agent a lien on, right of set-off against and security interest in the
Escrow Fund for the payment of any claim for indemnification, compensation,
expenses and amounts due hereunder.

9. TINS. The Purchaser and the Seller each represent that its correct Taxpayer
Identification Number ("TIN") assigned by the Internal Revenue Service ("IRS")
or any other taxing authority is set forth ON THE SIGNATURE PAGE HEREOF. In
addition, all interest or other income earned under the Escrow Agreement shall
be allocated and/or paid and reported by the Purchaser to the Internal Revenue
Service or any other taxing authority. Notwithstanding such written directions,
Escrow Agent shall report and, as required withhold any taxes as it determines
may be required by any law or regulation in effect at the time of the
distribution. In the absence of timely direction, all proceeds of the Escrow
Fund shall be retained in the Escrow Fund and reinvested from time to time by
the Escrow Agent as provided in Section 3. In the event that any earnings remain
undistributed at the end of any calendar year, Escrow Agent shall report to the
Internal Revenue Service or such other authority such earnings as it deems
appropriate or as required by any applicable law or regulation or, to the extent
consistent therewith, as directed in writing by the Purchaser. In addition,
Escrow Agent shall withhold any taxes it deems appropriate and shall remit such
taxes to the appropriate authorities.

10. NOTICES. All communications hereunder shall be in writing and shall be
deemed to be duly given and received:

      (i) upon delivery if delivered personally or upon confirmed transmittal if
      by facsimile;

      (ii) on the next Business Day (as hereinafter defined) if sent by
      overnight courier; or

      (iii) four (4) Business Days after mailing if mailed by prepaid registered
      mail, return receipt requested, to the appropriate notice address set
      forth on Schedule 1 or at such other address as any party hereto may have
      furnished to the other parties in writing by registered mail, return
      receipt requested.

Notwithstanding the above, in the case of communications delivered to the Escrow
Agent pursuant to (ii) and (iii) of this Section 10, such communications shall
be deemed to have been given on the date received by the Escrow Agent. In the
event that the Escrow Agent, in its sole discretion, shall determine that an
emergency exists, the Escrow Agent may use such other means of communication as
the Escrow Agent deems appropriate. "Business Day" shall mean any day other than
a Saturday, Sunday or any other day on which the Escrow Agent located at the
notice address set forth on Schedule 1 is authorized or required by law or
executive order to remain closed.

11. SECURITY PROCEDURES. In the event funds transfer instructions are given
(other than in writing at the time of execution of this Escrow Agreement, as
indicated in Schedule 1 attached hereto), whether in writing, by telecopier or
otherwise, the Escrow Agent is authorized to seek confirmation of such
instructions by telephone call-back to

<PAGE>

the person or persons designated on schedule 2 hereto ("Schedule 2"), and the
Escrow Agent may rely upon the confirmation of anyone purporting to be the
person or persons so designated. The persons and telephone numbers for
call-backs may be changed only in a writing actually received and acknowledged
by the Escrow Agent. If the Escrow Agent is unable to contact any of the
authorized representatives identified in Schedule 2, the Escrow Agent is hereby
authorized to seek confirmation of such instructions by telephone call-back to
any one or more of your executive officers, ("Executive Officers"), which shall
include the titles of President and CFO, as the Escrow Agent may select. Such
"Executive Officer" shall deliver to the Escrow Agent a fully executed
Incumbency Certificate, and the Escrow Agent may rely upon the confirmation of
anyone purporting to be any such officer. The Escrow Agent and the beneficiary's
bank in any funds transfer may rely solely upon any account numbers or similar
identifying numbers provided by the Purchaser or the Seller to identify (i) the
beneficiary, (ii) the beneficiary's bank, or (iii) an intermediary bank. The
Escrow Agent may apply any of the escrowed funds for any payment order it
executes using any such identifying number, even when its use may result in a
person other than the beneficiary being paid, or the transfer of funds to a bank
other than the beneficiary's bank or an intermediary bank designated. The
parties to this Escrow Agreement acknowledge that these security procedures are
commercially reasonable.

12. MISCELLANEOUS. The provisions of this Escrow Agreement may be waived,
altered, amended or supplemented, in whole or in part, only by a writing signed
by all of the parties hereto. Neither this Escrow Agreement nor any right or
interest hereunder may be assigned in whole or in part by any party, except as
provided in Section 6, without the prior consent of the other parties. This
Escrow Agreement shall be governed by and construed under the laws of the State
of New York. Each party hereto irrevocably waives any objection on the grounds
of venue, forum non-conveniens or any similar grounds and irrevocably consents
to service of process by mail or in any other manner permitted by applicable law
and consents to the jurisdiction of the courts located in the State of New York.
The parties further hereby waive any right to a trial by jury with respect to
any lawsuit or judicial proceeding arising or relating to this Escrow Agreement.
No party to this Escrow Agreement is liable to any other party for losses due
to, or if it is unable to perform its obligations under the terms of this Escrow
Agreement because of, acts of God, fire, floods, strikes, equipment or
transmission failure, or other causes reasonably beyond its control. This Escrow
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Escrow Agreement as of
the date set forth in Schedule 1.

TAX CERTIFICATION: Taxpayer ID#:    88-0459590
                                 -----------------------------------------------

Customer is a (check one):

<TABLE>
<S>                  <C>                   <C>                  <C>
_X_ Corporation      ___ Municipality      ___ Partnership      ___ Non-profit or Charitable Org
___ Individual       ___ REMIC             ___ Trust            ___ Other _________________
</TABLE>

Under the penalties of perjury, the undersigned certifies that:

(1)   the entity is organized under the laws of the United States or
      _____________ (specify country)

(2)   the number shown above is its correct Taxpayer Identification Number (or
      it is waiting for a number to be issued to it); and

(3)   it is not subject to backup withholding because: (a) it is exempt from
      backup withholding or (b) it has not been notified by the Internal Revenue
      Service (IRS) that it is subject to backup withholding as a result of
      failure to report all interest or dividends, or (c) the IRS has notified
      it that it is no longer subject to backup withholding.

(If the entity is subject to backup withholding, cross out the words after the
(3) above.)

Investors who do not supply a tax identification number will be subject to
backup withholding in accordance with IRS regulations.

NOTE: THE IRS DOES NOT REQUIRE YOUR CONSENT TO ANY PROVISION OF THIS DOCUMENT
OTHER THAN THE CERTIFICATIONS REQUIRED TO AVOID BACKUP WITHHOLDING.

PURCHASER - FAR EAST ENERGY CORPORATION

SIGNATURE: _/S/ BRUCE N. HUFF________________

PRINTED NAME: Bruce N. Huff
TITLE:  Chief Financial Officer

TAX CERTIFICATION: Taxpayer ID#:    98-0091375
                                 -----------------------------------------------

Customer is a (check one):

<TABLE>
<S>                  <C>                   <C>                  <C>
_X_ Corporation      ___ Municipality      ___ Partnership      ___ Non-profit or Charitable Org
___ Individual       ___ REMIC             ___ Trust            ___ Other _________________
</TABLE>

Under the penalties of perjury, the undersigned certifies that:

(1)   the entity is organized under the laws of the United States or
      ____Liberia_____________ (specify country)

(2)   the number shown above is its correct Taxpayer Identification Number (or
      it is waiting for a number to be issued to it); and

(3)   it is not subject to backup withholding because: (a) it is exempt from
      backup withholding or (b) it has not been notified by the Internal Revenue
      Service (IRS) that it is subject to backup withholding as a result of
      failure to report all interest or dividends, or (c) the IRS has notified
      it that it is no longer subject to backup withholding.

(If the entity is subject to backup withholding, cross out the words after the
(3) above.)

Investors who do not supply a tax identification number will be subject to
backup withholding in accordance with IRS regulations.

NOTE: THE IRS DOES NOT REQUIRE YOUR CONSENT TO ANY PROVISION OF THIS DOCUMENT
OTHER THAN THE CERTIFICATIONS REQUIRED TO AVOID BACKUP WITHHOLDING.

SELLER - CONOCOPHILLIPS CHINA INC.

SIGNATURE:___/S/ STEVE PARK_________

PRINTED NAME: STEVE PARK

<PAGE>

TITLE: _VICE PRESIDENT_____________________________________

J.P. MORGAN TRUST COMPANY, N.A.
AS ESCROW AGENT

BY:__JOSIE HIXON_____________________
      Authorized Signer

<PAGE>

14. Schedule 1

EFFECTIVE DATE: MAY 14, 2004

NAME OF PURCHASER: FAR EAST ENERGY CORPORATION
Seller Notice Address: 400 N. Sam Houston Parkway East, Suite 205
Houston, Texas 77060
Purchaser TIN: 88-0459590
Wiring Instructions:

NAME OF SELLER: CONOCOPHILLIPS CHINA INC.
Purchaser Notice Address: Primary Address: 600 North Dairy Ashford Rd., Houston,
TX 77079-1175 Copy to: Room 1201 Millenium Tower, No. 38 Xiaoyun Road,
Chaoyang District Beijing 100027 China
Seller TIN: 98-0091375
Wiring Instructions:
15. Escrow Deposit: $1,000,000

INVESTMENT:                     [specify]

      [X]   JPMorgan Chase Bank Money Market Account;

      [ ]   A trust account with JPMorgan Chase Bank;

      [ ]   A money market mutual fund, including without limitation the
            JPMorgan Fund or any other mutual fund for which the Escrow Agent or
            any affiliate of the Escrow Agent serves as investment manager,
            administrator, shareholder servicing agent and/or custodian or
            subcustodian, notwithstanding that (i) the Escrow Agent or an
            affiliate of the Escrow Agent receives fees from such funds for
            services rendered, (ii) the Escrow Agent charges and collects fees
            for services rendered pursuant to this Escrow Agreement, which fees
            are separate from the fees received from such funds, and (iii)
            services performed for such funds and pursuant to this Escrow
            Agreement may at times duplicate those provided to such funds by the
            Escrow Agent or its affiliates.
            Fund

ESCROW AGENT NOTICE ADDRESS:        J.P. Morgan Trust Company, N.A.
                                            600 Travis, 11th Floor
                                            Houston, TX 77002
                                            Attention: Josie Hixon

<PAGE>

                                    Fax No.: (713) 216-6590

ESCROW AGENT'S COMPENSATION:

                                   SCHEDULE 2

                     TELEPHONE NUMBER(S) FOR CALL-BACKS AND
           PERSON(S) DESIGNATED TO CONFIRM FUNDS TRANSFER INSTRUCTIONS

If to Purchaser:

         Name                                       Telephone Number

1.   Bruce N. Huff                            713-586-1896
     ---------------------------------        ----------------------------------
2.   Lynne Watson                             713-586-1900
     ---------------------------------        ----------------------------------
3.   Mike McElwrath                           713-586-1898
     ---------------------------------        ----------------------------------

If to Seller:

         Name                                       Telephone Number

1.   David W. Brown                           281-293-1099
     ---------------------------------        ----------------------------------
2.   Steve M. Park                            81-293-6574
     ---------------------------------        ----------------------------------
3.   Joe Y. Hwang                             8610-8451-8666 ext. 6177
     ---------------------------------        ----------------------------------

Telephone call-backs shall be made to each Purchaser and Seller if joint
instructions are required pursuant to this Escrow Agreement.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]