29 Jul 2010 07:00
Great Eastern Energy Corporation Limited
("Great Eastern" or "the Company")
Interim Management Statement
Great Eastern Energy Corporation Limited (LSE:GEEC) a company involved in the exploration, development and production of Coal Bed Methane in India, today issues its Interim Management Statement for the period from 1 April 2010 to the date of this announcement as required by the UK Listing Authority Disclosure and Transparency Rules.
Award of CBM block
As previously announced, Great Eastern has been awarded a new block at Mannargudi, Tamil Nadu situated at the southern part of India. The CBM resource of the block is estimated at 0.98 TCF as per the information from Directorate General of Hydrocarbons.
Move to LSE Main Market
The Company moved its GDR listing from AIM to a standard listing on the Main Market of the London Stock Exchange in May 2010. With the growth experienced by Great Eastern on AIM, the management considers the Main Market the most appropriate platform for the continued development of the Company.
Operational Highlights
·; External pipelines completed and commissioned (77.62 km)
·; Capacity of approximately 110 mmscfd at 45 bar pressure
·; 42 wells interconnected; further wells being connected
·; Drilled 74 wells
·; Fraccing summary:
§ Total wells fracced - 42
§ Further fracturing underway
·; 36 wells dewatering/producing
·; 24.62 mmscfd has been contracted/MOUs signed
·; In addition to the franchisee agreement with Indian Oil Corporation Limited, another franchisee agreement was signed with Bharat Petroleum Corporation Limited for supplying CNG in February 2010
Financial Highlights
·; Sales of CBM gas of US$ 2.54 million for the quarter ended 30 June 2010 (quarter ended 30 June 2009: US$ 0.24 million) vs US$ 2.47 million (for the year ended 31 March 2010) demonstrates the enhanced sales momentum that Great Eastern is now experiencing.
·; The Company has long-term debt of US$ 55.70million as at 30 June 2010 from a consortium of Indian banks for the project located at Raniganj (South), West Bengal.
·; On 19 July 2010, the Company announced its year end figures for the period up to 31 March 2010 and reported that it had moved into profit on an EBITDA basis for the current financial year.
Commenting, Prashant Modi, President and COO of Great Eastern, said:
"The Company has continued to make solid operational progress. All the core constituents for the commercialisation of the Raniganj blocks are now in place and we look forward to further developing production to meet existing sales agreements over the next 18 months. The award of the Tamil Nadu block provides the Company with additional longer term prospects. Having now successfully developed the skills needed to commercialise CBM in India, we are well placed to develop its clear potential."
For further information:
Great Eastern Energy +44 (0)20 7337 1516
Yogendra Kr. Modi - Chairman & CEO
Prashant Modi - President & COO
Arden Partners plc +44 (0)20 7614 5918
Richard Day
Adrian Trimmings
RBC Capital Markets +44 (0)20 7653 4000
Martin Eales
Brett Jacobs
Pelham Bell Pottinger +44 (0)20 7861 3232
Philip Dennis
Elena Dobson