BullRaid

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Friday , July 20, 2007 07:01ET

HOUSTON, Jul 20, 2007 (BUSINESS WIRE) -- Far East Energy Corporation (OTC BB:FEEC) announced that it has agreed to a tentative term sheet for a proposed equity investment of $15 million by the International Finance Corporation (IFC), the private sector arm of the World Bank Group based in Washington, D.C. The financing would support FEEC's coal bed methane projects in China's Shanxi and Yunnan Provinces. The final terms and closing of the offering are subject to entering into definitive documentation and approval of the boards of directors of IFC and Far East Energy as well as other requirements. Closing is anticipated to occur prior to the end of the third calendar quarter of 2007.

The IFC has also indicated that it is interested in considering future long-term project financing. In addition to this potential project financing, IFC, as a member of the World Bank Group, can potentially render political risk mitigation, guidance on developing a long term strategy to leverage potential carbon finance opportunities under the Kyoto Protocol, and assistance on other aspects of Far East Energy's activities in China.