GEEC.L Regulatory News (GEEC)

5 Feb 2007 07:01

Great Eastern Energy Corp Ltd05 February 2007 For Immediate Release: 7.00am Monday 5 February 2007 Great Eastern Energy Corporation Ltd Trading Update Great Eastern Energy Corporation Ltd. (Great Eastern), a Company involved in theexploration, development and production coal bed methane (CBM) in India, ispleased to make the following trading update in advance of investor meetingsduring the week starting 5 February 2007. Since the last update at the interim results on 20th November 2006, the Companyhas continued to make solid progress and remains in line with expectations ofachieving saleable gas production by the middle of 2007. The completion of wells, which includes perforation, fracturing and installationof pumps, is slightly ahead of where we anticipated at the time of the resultswith 23 wells now completed. Of these wells, 18 are currently dewatering and 5wells are producing gas. Gas production is currently 437 mcfd, a 25% increaseover November, with the most productive of the wells producing 200mcfd. As drilling and completion activities have progressed, the on site team hasgained a better understanding of the license area and as a result both theaverage drilling time per well and the time needed to complete each well hasbeen substantially reduced. Commenting, YK Modi, Chairman and CEO of Great Eastern, said: "The Company has continued to make solid progress in line with expectations.The market for resources in India remains buoyant and we look forward toachieving saleable production by the middle of this year". -ENDS- For further information: Great Eastern EnergyYK Modi Chairman & CEO + 44 (0) 20 7743 6673 Pelham Public RelationsJames Henderson +44 (0)20 7743 6673Philip Dennis Arden PartnersRichard Day +44 (0)20 7398 1632Steve Pearce Notes to Editors: Great Eastern Energy Corporation Ltd ("Great Eastern") raised £19m in December2005 through an admission of Global Depositary Receipts (GDRs) on the AIMmarket. The Company has a notional market capitalization of £130.7m. Great Eastern holds a licence to explore for CBM in the 210 sq km block in theRaniganj Coalfields, West Bengal. An independent report by Schlumberger awarded3P reserves of 817bcf and gas in place reserves of 1.386tcf, with average gascontent of 250 scf per ton to the block. The project plan involves drilling of 100 production wells over an estimatedfour year period in the first phase. In addition to 3 pilot wells, the first 20production wells have been drilled / completed and 18 are dewatering prior toproduction. The market for natural gas in India is growing rapidly on the backof strong economic growth. This information is provided by RNS The company news service from the London Stock Exchange