GEEC.L Regulatory News (GEEC)

31 Oct 2007 07:01

Great Eastern Energy Corp Ltd31 October 2007 31 October, 2007 Great Eastern Energy Corporation Limited ("Company", "GEECL", or "Great Eastern") Franchise Agreement Great Eastern Energy Corporation Limited ("Company", "GEECL", Great Eastern")(AIM: GEEC.L), a Company involved in the exploration, development and productionof Coal Bed Methane (CBM) in India, is pleased to announce that it has enteredinto a franchise agreement with the Indian Oil Corporation ("IOC"), a Fortune500 company and India's largest downstream operation with the largest number ofretail outlets in the country. Further to the MOU signed earlier this year and announced on 6 June 2007, GreatEastern has agreed to establish CNG dispensing stations at IOC retail outlets inthe cities located in and around the Company's licence area. It is expected thatwhen these 5 stations are fully operational they will dispense approx. 1.5mmscfd of CNG per day at an average delivered price of over $15 / mcf. TheCompany expects the number of stations supplied to increase as production of CBMgas grows. Commenting, Prashant Modi, President and COO of Great Eastern, said: "We aredelighted to announce this agreement with the Indian Oil Corporation. This isthe first commercial agreement of its type in India and demonstrates theversatility, credibility and potential of CBM as an alternative fuel source inIndia. It also represents a further step forward in the evolution of the Companyfrom production to end-user distribution." -ENDS- For further information: Great Eastern EnergyYK Modi Chairman & CEO + 44 (0) 20 7743 6663Prashant Modi President & COO Pelham Public RelationsPhilip Dennis +44 (0)20 7743 6663Hugh Barker +44 (0)20 3008 5009 Arden PartnersRichard Day +44 (0)20 7398 1632Tom Fyson +44 (0)20 7398 1637 Notes to Editors: Great Eastern Energy Corporation Ltd. ("Great Eastern") raised £19m in December2005 through an admission of Global Depositary Receipts (GDRs) on the AIMmarket. The Company has a notional market capitalization of £174 million (US$360 million). Great Eastern holds a licence for the exploration and production of CBM in the210 sq km block in the Raniganj Coalfields, West Bengal. For more information please visit www.geecl.com This information is provided by RNS The company news service from the London Stock Exchange