4 Jan 2011 14:19
January 4, 2011
Great Eastern Energy Corporation Limited
("Great Eastern" or the "Company")
Signing of the MOU and approval for Petroleum Exploration License - Mannargudi CBM Block
Great Eastern Energy Corporation Limited, a company involved in the exploration, development and production of Coal Bed Methane ("CBM") in India, is pleased to announce it has today signed a Memorandum of Understanding (MOU) with the Government of Tamil Nadu and received approval from them for granting the Petroleum Exploration License ("PEL") in relation to the Company's second CBM Block, Mannargudi. The grant of approval of the PEL is ahead of the Company's expectations.
By signing of this MOU, the Government of Tamil Nadu has agreed to facilitate the Company in getting necessary approvals and clearances for successful implementation of the project. Great Eastern has committed to make an initial investment in exploration activities of approximately US$ 21 million over 5 years in its committed minimum work program ("MWP") of 50 core wells and 30 pilot production wells. Depending on the outcome of the MWP, a further investment of upto US$ 800 million is estimated for fully developing the Mannargudi Block.
As announced at the time, the Mannargudi Block was awarded to Great Eastern as part of the CBM-IV licensing round in June last year. Subsequent to being awarded the Block, the Company signed the Production Sharing Contract with the Government of India in July 2010.
The total effective area of the Mannargudi Block, which excludes the area with proposed coal mining operations, is 667 sq km. The gas in place in the effective area is 0.98 Tcf as estimated by the Directorate General of Hydrocarbons, India.
-ENDS-
For further information:
Great Eastern Energy
YK Modi Chairman & CEO + 44 (0) 20 7861 3232
Prashant Modi President & COO
Arden Partners
Richard Day +44 (0)20 7614 5917
Adrian Trimmings
Pelham Bell Pottinger Public Relations
Philip Dennis +44 (0)20 7861 3919
Elena Dobson +44 (0) 207861 3147