LONDON, July 16 /PRNewswire-FirstCall/ -- Great Eastern (AIM: GEEC.L), a Company involved in the exploration, development and production of coal bed methane (CBM) in India, is pleased to announce, as outlined at the time of the Group's preliminary results in June, that it has commenced initial industrial sales of CBM as well as sales of Compressed Natural Gas "CNG" for vehicles in and around Asansol, West Bengal, India.
The delivered price being obtained by GEECL is between $13 to $15 / mcf.
The occasion was inaugurated by Mr.Nirupem Sen, Hon'ble Minister of Commerce and Industry, West Bengal, who said "The commencement of sales of CBM will change the face of industrialisation and reduce pollution in the state of West Bengal."
The Prime Minister of India, Dr. Manmohan Singh, commented, "I am pleased to learn that Great Eastern Energy Corporation limited is making the first sale of its gas at Asansol. It is note worthy that this will be the first Coal Bed Methane sale in India. The commercial exploitation of Coal bed Methane will certainly help in meeting India's growing energy needs."
Mr YK Modi, Chairman and Chief Executive Officer, GEECL, added,"
"We are proud to be India's first private sector company to venture into Coal Bed Methane exploration, production and distribution. India's continued economic growth is dependent upon meeting the growing energy demand. We believe that the production and adoption of CBM can play an important part in meeting the energy shortage in a cost efficient and clean fashion."
About GEECL:
Great Eastern Energy Corporation Ltd. ("Great Eastern") raised GBP19m in December 2005 through an admission of Global Depositary Receipts (GDRs) on the AIM market. The Company has a notional market capitalization of GBP172 million.
Great Eastern holds a licence to explore for CBM in the 210 sq km block in the Raniganj Coalfields, West Bengal. In a report dated June 1, 2007, Netherland, Sewell and Associates, Inc. (NSAI) put the Original Gas-in-Place (OGIP) at 1.92 TCF, which is an increase of 38.5% from the previous report used at the time of the floatation of the Company in December 2005. The NSAI report was prepared in accordance with 2000 petroleum resources definitions approved by the Society of Petroleum Engineers (SPE), World Petroleum Council (WPC), and American Association of Petroleum Geologists (AAPG). In accordance with the standards, the OGIP will move into reserves after entering into commercial off-take contracts and providing established production profiles.
GEECL has already drilled 23 production wells and proposes to drill a further 80 production wells in a phased manner over a period of 3 years.
For further information:
Great Eastern Energy
YK Modi Chairman & CEO
Prashant Modi
President & COO
+44-(0)20-3008-5509
Pelham Public Relations
Philip Dennis
Hugh Barker
+44-(0)20-3008-5509
Arden Partners
Richard Day
Steve Pearce
+44-(0)20-7398-1632
Great Eastern Energy Corporation Ltd.
CONTACT: For further information: Great Eastern Energy, YK Modi
Chairman & CEO, Prashant Modi, President & COO, +44-(0)20-3008-5509; Pelham
Public Relations: Philip Dennis, Hugh Barker, +44-(0)20-3008-5509; Arden
Partners: Richard Day, Steve Pearce, +44-(0)20-7398-1632
