RE: Coal Bed Methane Gas Sales Agreement for Shouyang Project ("GSA") by and between CUCBM and Shanxi Provincial Guoxin Energy Development Group Co. Ltd. ("Buyer")

Exhibit
10.3

Xxxx 00,
0000

Xxxxx
United Coal Bed Methane Corporation Ltd. ("CUCBM"):

            RE:

            Coal
      Bed Methane Gas Sales Agreement for Shouyang Project ("GSA") by and
      between CUCBM and Shanxi Provincial Guoxin Energy Development Group Co.
      Ltd. ("Buyer")

Thank you
for your letter titled "Regarding Shouyang Project CBM Purchase and Sale
Contract dated June 8, 2010," identified as CUCBM Business Management Dept.
document No. [2020]25.  We are pleased with the completion of the
negotiations and finalization of the GSA in accordance with Section 14.6.1 of
the Shouyang PSC.  We accept the current terms of the
GSA.
 
Neither
the GSA nor your letter will modify any rights of FEEB under the Shouyang
PSC.

              Yours
      truly,

              FAR
      EAST ENERGY (BERMUDA), LTD.

              /s/ Xxxxxxx X. XxXxxxxxx

              Name:
      Xxxxxxx X. XxXxxxxxx

              Title:   Chairman

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RE: Coal Bed Methane Gas Sales Agreement for Shouyang Project ("GSA") by and between CUCBM and Shanxi Provincial Guoxin Energy Development Group Co. Ltd. ("Buyer")

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