4 Jul 2013 07:00
4 July 2013
Great Eastern Energy Corporation Limited
("Great Eastern" or "the Company")
Production Update on Raniganj (South) Block and Dividend Policy
Great Eastern Energy Corporation Limited (LSE:GEEC), the fully integrated, leading Indian Coal Bed Methane (CBM) company is pleased to announce that gross production has now increased to 20.40 mmscfd, up 18% from the gross production rate announced on 10 June 2013.
The following table shows the gross production rates at our Raniganj (South) Block as on 30 June 2013
Forecasted Exit Gross Production | Actual Exit Gross Production (mmscfd) | ||
Region | Low end (mmscfd) | High end (mmscfd) | |
North Bank | 18.3 | 20.3 | 18.8 |
South Bank | 3.4 | 3.8 | 1.6 |
Total | 21.7 | 24.1 | 20.4 |
As previously announced on 24 February 2012, the Company discovered that the coal seams of the southern bank are under-saturated. As a result of this under-saturation, the dewatering time to initial gas production is taking longer than expected. As announced on 10 June 2013, 17 wells are already producing gas in the southern bank. Further two core wells have been drilled in the last year on the southern bank, which have re-confirmed the gas content and producibility. Production from the north side of the block has met with expectations.
In the light of the increasing production trend and the Company becoming profitable, the Company may consider announcing a dividend in the coming years subject to the recommendation of the Board of Directors and approval by the shareholders, in their discretion, and will depend on a number of factors, including but not limited to our earnings, general financial conditions, capital requirements, results of operations, restrictive covenants under the loan or financing arrangements etc.
For further information please contact:
Great Eastern Energy | |
Yogendra Kr. Modi Chairman & CEO Prashant Modi President & COO | +44 (0)20 7337 1516 |
Goldman Sachs International | |
Alastair Maxwell | +44 (0)20 7774 1000 |
Duncan Stewart | |
Arden Partners | |
Richard Day | +44 (0)20 7614 5917 |
Macquarie Capital (Europe) Limited | |
Steve Baldwin | +44 (0)20 3037 2362 |