In the last trading session Far East Energy Corp. (PINK:FEEC) stock fell down again to a strong support level for this month. The company has not issued any news these days and yesterday’s share price move signaled that FEEC could fall again into a lower trading range. 
Shortly before market close FEEC fell to $0.18, which has been a strong level of support touched a number of times since the beginning of the month. The session closed at $0.1899, a 0.05% decline from the previous close. Yet, there are signs of weakness. RSI lies now exactly at 50 and looks like it could reverse, while yesterday’s volume was five times higher than the average for the past three months with nearly 2.2 million traded shares.
The latest 8-K from the company is from October 13, 2011, and it constitutes also the latest news from FEEC. Then, the company announced an amendment of the employment agreement of its President and CEO Michael R. McElwrath. According to the new terms of the agreement, the term has been extended from October 13, 2013 to October 13, 2014. Also, the material conditions include that Mr. McElwrath would receive an annual salary of not less than $396,900, as well as one performance bonus period per year.
Far East Energy Corp. engages in the development of coalbed methane gas properties exclusively in the People’s Republic of China and its gas sales commenced in the first quarter of the year. The results have not been satisfactory so far with the revenues of only $214,000 for the first six months of 2011, while the net loss for the same period exceeded $7 million.
FEEC also had current liabilities of over $21 million at the end of June 2011 and the stock holds high dilution risks. According to the latest 10-Q, the number of outstanding common shares increased from 291 million to 342 million in just six months.
