14 Jul 2010 07:00
RNS Number : 3054P
Great Eastern Energy Corp Ltd
14 July 2010
Great Eastern Energy Corporation Limited
(“Great Eastern” or “the Company”)
Confirmation of the Award of CBM Block at Mannargudi
Further to announcement on June 25, 2010, Great Eastern Energy Corporation Ltd, a company involved in the exploration, development and production of coal bed methane in India, announces it has received a letter from the Government of India confirming the award of the Mannargudi Block in the state of Tamil Nadu, Southern India. It is intended that the contract covering this Block will be signed between the Company and the Government of India in the last week of July.
The Mannargudi Block covers an area of 691 km² and has been attributed gas in place of 0.98 Tcf by the Directorate General of Hydrocarbons ("DGH").
The royalty payable on gas produced from the Mannargudi Block starts at 35%, increasing to an upper limit of 45% as production increases. Under the conditions for the award of the Block, the Company has committed to drilling 50 core wells and 32 pilot production wells over 5 years after receiving all the approvals.
Yogendra Kr. Modi, Chairman & CEO of Great Eastern, commented:
“The award of this further block provides the Company with a significant additional growth opportunity. It will also change the balance of the Company in the longer term as a result of having a wider spread of assets. Great Eastern has proved its ability to develop CBM acreage and, although the geology in this new block is different, we are well positioned to be able to exploit its clear potential.
The block itself received the highest number of bids in the recent license round. The fiscal terms under which we have gained the license are more stringent then under our existing block, however, we believe they remain highly commercial”.
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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 5900
Adrian Trimmings
RBC Capital Markets
Martin Eales +44 (0)20 7653 4000
Brett Jacobs
Pelham Bell Pottinger
Philip Dennis +44 (0)20 7861 3919
Elena Dobson +44 (0)20 7861 3147
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