LONDON (Alliance News) - Great Eastern Energy Corp Ltd on Monday said its earnings in the first half of the financial year will be below market expectations because of issues at one of its largest customer's plants.
The coal bed methane and gas company operates the Raniganj (South) licence in India and said demand "remains strong", but said one of its largest customers is having a problem with its plant which will negatively impact Great Eastern Energy's earnings for the first half of the financial year ended September 30.
Great Eastern Energy, which didn't name the customer, said it is continuing to hold talks with other potential offtake customers.
"The company has been informed by the customer that its respective original equipment manufacturer personnel are now currently on site to resolve these issues, and that works to remedy the problem should be completed by the end of next month," it said in a statement.
"This is a short term setback as production continues to increase and the board remains confident for the future," Great Eastern Energy added.
Coal-bed methane is an unconventional source of natural gas that requires methods similar to fracking to extract. Countries all over the world, including the US, the UK, Australia and China, are currently exploring the technique of using old coal seams to produce natural gas to boost domestic energy production.
Great Eastern Energy shares were untraded on Monday, last trading at 32.0 pence per share.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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