15 Dec 2009 07:00
15 December 2009
Great Eastern Energy Corporation Limited
Significant Gas Sale Agreement
Great Eastern Energy Corporation Limited ("Great Eastern" or "the Company"), a company involved in the exploration, development and production of coal bed methane in India, is pleased to announce it has entered a significant long term Gas Sale Agreement (GSA) with SAIL ISP (ISP) for the supply of up to 12.85 MMscfd of gas.
Under the agreement, Great Eastern will initially supply 2.31 MMscfd from February 2010, increasing to 12.85 MMscfd in 2011. The gas initially supplied under the agreement will go to ISP's existing steel facility in Burnpur, Asansol. After the expansion of that facility, which is currently taking place, gas will be supplied at peak volumes. The expanded facility is expected to be completed in 2011.
Gas supplied under this GSA will be transported to ISP through the gas pipeline completed in October 2009 and demonstrates the Company's ability to service large scale gas agreements.
ISP is a subsidiary company of the Steel Authority of India Limited, with whom Great Eastern already has a gas sales agreement in place for the supply of gas to SAIL Growth Works in Kulti.
Commenting, Prashant Modi, President & COO of Great Eastern, said:
"This very significant sales arrangement will produce substantial revenues for the Company over the life of the agreement. This agreement also demonstrates the Company's ability to service long term significant commercial supply arrangements and is a further reflection of Great Eastern's shift from a Company focused on drilling operations to sales, marketing and the commercialisation of its assets".
Disclaimer---- http://www.geecl.com/IPO-SEBI-Disclaimer.html
-ENDS-
For Further Information:
Great Eastern Energy
YK Modi Chairman & CEO +44 (0)20 7337 1516
Prashant Modi President & COO
Arden Partners
Richard Day +44 (0)20 7614 5932
Adrian Trimmings
RBC Capital Markets
Sarah Wharry +44 (0) 20 7653 4667
Pelham Public Relations
Philip Dennis +44 (0)20 7337 1516
Elena Dobson +44 (0)20 7337 1517