17 Mar 2009 10:26
Great Eastern Energy Corporation Limited
Gas Sale Agreement ("GSA")
Great Eastern Energy Corporation Limited ("Great Eastern Energy" or "the Company"), a company involved in the exploration, development and production of coal bed methane in India, is pleased to announce that the Company has entered into a long term Gas Sale Agreement with Mackeil Ispat & Forging Limited, a steel company based in Durgapur, West Bengal, India, with gas sale commencing on or before 30 June 2009 for a 25 year period.
Under the GSA, Great Eastern will eventually supply 1.57 MMSCFD (44,500 SCMD) of gas to Mackeil Ispat & Forging Limited after the first 12 months of the GSA. During the first 12 months of the GSA, supply will gradually increase, over every three months to reach this level. The gas will initially be delivered in cascades but the company intends to supply the gas through its pipeline to Durgapur once it has been completed later this year.
Commenting, Prashant Modi, President & COO of Great Eastern, said:
"The signing of this agreement is a further step change in the Company as we progressively move from being a development business to one focused on both development and also gas sales. The signing of this agreement also reflects the progress being made in the laying of Great Eastern's third major distribution pipeline. Furthermore, this agreement is a significant step towards establishing CBM as a viable source of gas in West Bengal.
Disclaimer
Great Eastern Energy Corporation Limited is proposing, subject to market conditions and other considerations, a public issue of its equity shares and has filed its Draft Red Herring Prospectus ("DRHP") with the Securities & Exchange Board of India ("SEBI").
This press release does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any equity shares, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. Any potential investor should note that investment in equity shares involves a high degree of risk. For details, potential investors should refer to the DRHP filed with the SEBI including the section titled "Risk Factors". The Equity Shares of the Company have not been and will not be registered under the U.S. Securities Act 1933, as amended or any state securities laws in the United States. This announcement may not be released in the United States.
This announcement does not constitute an offer of securities for sale in any jurisdiction, including the United States, and any securities described in this announcement may not be offered or sold in the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act.
-ENDS-
For Further Information:
Great Eastern Energy
YK Modi Chairman & CEO +44 (0)20 7743 6363
Prashant Modi President & COO
Arden Partners
Richard Day +44 (0)20 7398 1632
Adrian Trimmings
RBC Capital Markets
Sarah Wharry +44 (0) 20 7653 4667
Pelham Public Relations
Philip Dennis +44 (0)20 7337 1516