Final Results

10 June 2013

Great Eastern Energy Corporation Limited

("Great Eastern" or "the Company")

Full Year Results Year ended 31 March 2013

Great Eastern Energy Corporation Limited (LSE: GEEC), the fully integrated, leading Indian Coal Bed Methane (CBM) company, is pleased to announce its Preliminary Results for the 12 months ended 31 March 2013.

Highlights

Financials:

·; Total revenue increased by 23% to US$ 29.18m (2012: US$ 23.72m)

·; On a constant currency basis total revenue has increased by 40% to Rs. 1,589m (2012: Rs. 1,137m)

·; EBITDA increased by 31% to US$ 18.69m (2012: US$ 14.30m)

·; On a constant currency basis EBITDA increased by 48% to Rs. 1,018m (2012: Rs. 686m)

·; PAT pre MTM* US$ 10.01m (2012: pre MTM* US$ 5.41m)

·; On a constant currency basis PAT pre MTM* Rs. 545m (2012: pre MTM* Rs. 259m)

·; PAT after MTM* profit of US$ 7.42m (2012: loss after MTM* of US$ 2.75m)

·; On a constant currency basis PAT after MTM* profit of Rs. 404m (2012: loss after MTM* of Rs. 132m)

·; The Company has a net debt of US$ 101.13m as at 31 March 2013

* MTM (Mark to Market) is on account of the restatement of the foreign currency loans and derivatives

Upstream:

Raniganj (South) Block:

·; Production increased to 17.3 mmscfd, up 94% from May 2012, and a 17% increase from October 2012

·; A total of 150 wells drilled; including 50 deviated wells successfully drilled

·; 16 deviated wells producing gas

·; Total of 127 wells dewatering / producing gas, a 43% increase over the previous year

·; Increase of 7% to 277 BCF (from 258 BCF as at May 2012) in 3P reserves at Raniganj (South) Block

·; Increase of 12 % to 139 BCF (from 124 BCF as at May 2012) in 2P reserves at Raniganj (South) Block

Mannargudi Block:

·; Final approvals expected from the State Government

·; Minimum work program consists of 30 pilot production wells and 50 core holes

Raniganj (North) Block:

After the period end, in May, Oil and Natural Gas Corporation Ltd. ("ONGC") awarded a 25% Participating Interest in Raniganj (North) Block, which is adjacent to our Raniganj (South) Block. The Company has accepted their offer on 17 May 2013, which is subject to execution of Farm-in related, and Joint Operatorship agreements with ONGC (along with its consortium) and the approval from the Government of India.

Downstream:

·; Great Eastern continues to supply to its existing customer base while adding further new industrial customers

·; 40.37 mmscfd gas under contract / MOU, an increase of 8% over the year

Outlook

·; Commence work on the Mannargudi Block once expected approvals received

·; Minimum work program consists of 30 pilot production wells and 50 core holes

·; Finalise agreements and procure approvals for the 25% Participating Interest awarded to the Company by ONGC in the Raniganj (North) Block

·; 150 wells planned to be drilled over the next four years on the Raniganj (South) Block

·; Listing of equity shares of the Company on Indian Stock Exchanges, subject to regulatory approvals and market conditions

Prashant Modi, President and COO of Great Eastern, commented:

"This has been a significant year for Great Eastern. Operationally we continue to make excellent progress. The Company has increased reserves and production at Raniganj (South), and due to the large local demand this increase has flowed directly through to revenue. The award of preferred bidder status by ONGC for the Raniganj (North) Block provides us with an exciting opportunity to build on this success.

On a corporate level, the proposed listing in India is a natural progression in the Company's development, and will help boost liquidity and drive future growth."

*Due to regulatory provisions (consisting inter alia SEBI rules, regulations and guidelines), in the light of the on-going IPO process, the Company has not made any forward looking statements.

A presentation for analysts will be held at 9am on Monday 10 June 2013 at the offices of M:Communications, 1 Ropemaker Street, London, EC2Y 9AW.

For further information please contact:

Chairman's Statement

Financials

In the 12 months to 31 March 2013 Great Eastern made material progress across the business, delivering significant growth in production, revenue, and profit.

The increase in revenue and profit was as a result of the significant uplift in gas production and corresponding sales. With existing gas sales contracts and MOUs in place, any increase in production is reflected in enhanced revenue, which in turn falls through to growth in cash flow.

Total revenue increased by 23% to US$ 29.18m as compared to the corresponding previous financial year, while EBITDA increased by 31% to US$ 18.69m. On a constant currency basis total revenue has increased by 40% to Rs. 1,589m.

At the PAT level (pre MTM) the company has made a significant profit of US$ 10.01m as compared to a profit (pre MTM) of US$ 5.41m during the last financial year. MTM (Mark to Market) is on account of the restatement of the foreign currency loans and derivatives.

The Company has a net debt of US$ 101.13m as at 31 March 2013, with various leading banks. The Company has access to total debt facilities of Rs. 2.45 billion (approximately US$ 46m) from the consortium of bankers. The company has drawn down US$ 27.48m.

The supply and demand dynamic for Indian gas, and the pricing environment, remains extremely attractive and is likely to remain so for some years to come.

Having seen the benefit of considerable investment in asset and infrastructure development over the years, Great Eastern is now a significantly de-risked and profitable business. These results confirm that we are at the start of a sustained period of visible and profitable growth as we ramp up production to its full potential, as well as developing additional resources.

Reserves, Drilling & Production

In March 2013 we announced an increase in our reserve numbers, as provided by independent reserve engineers Advance Resources International, Inc. (ARI). There has been an increase of 2% in Original-Gas-In-Place (OGIP) to 2.40 TCF from 2.35 TCF, an increase of 7% in gross Proven, Probable and Possible reserves (3P) and an increase of 12 % in 2P reserves from May 2012.

We continue to make progress in production ramp-up. A total of 150 wells have now been drilled at our Raniganj (South) block, with a total of 127 wells dewatering / producing gas, a 43% increase over the previous year. The commencement of drilling deviated wells from a single well site and the drilling of multiple wells from the same location will also accelerate production, with increased time efficiency and faster completions. To date 50 deviated wells have been drilled.

The Company has been awarded a 25% Participating Interest in Raniganj (North) Block which was offered by ONGC through a competitive bidding process initiated in January, 2013. The current operator of this block is ONGC.

Raniganj (North) Block is adjacent to the current Raniganj (South) Block of the Company in the state of West Bengal, India. The Gas-in-Place in the entire Raniganj (North) Block as per the Directorate General of Hydrocarbons (DGH) is 1.5 TCF.

The Company has accepted their offer on 17 May 2013, which is subject to execution of Farm-in related, and Joint Operatorship agreements with ONGC (along with its consortium) and the approval from the Government of India.

Sales, Marketing, & Distribution

Since May 2012 additional contracts were signed for 2.84 mmscfd. In total, the Company has 40.37 mmscfd of gas under contract / MOU. This represents an increase of 8% over the year.

Great Eastern is well placed to supply gas in and around highly industrialised region of Asansol-Raniganj-Durgapur.

Mannargudi CBM Block

The Mannargudi Block covers an effective area of 667 sq. km. and is located in the southern part of the country.

The Company signed a CBM contract for the Mannargudi Block with the Government of India on 29 July 2010, and has signed the Petroleum Exploration License with the Government of Tamil Nadu. The Company has received Environment Clearance and final approval is expected from the Government of Tamil Nadu. Work will start soon after receipt of requisite approvals which will consist of 30 pilot production wells and 50 core holes.

Indian IPO

The Company has received shareholder approval to conduct an Initial Public Offering in India in order to raise further capital and to achieve a listing of its Ordinary Shares on the Indian Stock Exchanges alongside its existing listing of Global Depository Receipts on the Main Market of the London Stock Exchange.

The Indian IPO is being conducted interalia in order to raise further funds for the Company, to increase liquidity in its public shares, and also help raise awareness in the markets in which it operates. As elicited in the shareholder approval, it is anticipated that these funds will be allocated towards the acceleration of the Company's next phase of development, acquisition of new acreages in CBM, repayment of the debt or any other objects as Board or its committee may decide from time to time. The allocation of such funds is yet to be finalised and will interalia depend on the total amount raised, which in turn is dependent on the price determined through the book building process. Subject to regulatory approvals and market conditions, it is intended to list the shares on the BSE Limited and National Stock Exchange of India Limited and such other recognised stock exchanges as may be determined by the Board from time to time.

CSR

I'm pleased to inform that in the first ever Economic Times Bengal Corporate Awards, the Company has been awarded "The Best Entity in the Area of Corporate Social Responsibility".

Great Eastern has contributed towards improving the environment in this area through substitution of polluting fuels with the use of clean energy. We also sponsor a number of medical camps, blood donation camps, sporting activities, and community health initiatives in the region.

Great Eastern views itself as an integral part of the community in which it works, with the business designed to not only create value for the company but also to make a positive contribution to the sustainable development of the local area.

I would like to thank our management team and all personnel for their on-going contribution to our continuing success.

Outlook

We are well placed to build on the success to date of the 12 months to 31 March 2013 in the current year to 31 March 2014. We will endeavour to drive production growth in the Raniganj (South) Block. We have the infrastructure in place to meet the demand of the market in the highly industrialised region of Asansol - Raniganj - Durgapur.

We look forward to commencing work at the Mannargudi Block post the receipt of official approvals, and being selected as the preferred bidder by ONGC on the Raniganj (North) block brings in another exciting area of development into our operations.

Looking further ahead we have an exciting drilling schedule with some 150 wells planned to be drilled over the next four years on the Raniganj (South) Block alone.

Independent Auditors' Report

To the Members of

Great Eastern Energy Corporation Limited

We have audited the accompanying financial statements of Great Eastern Energy Corporation Limited ("the Company"), which comprise the statement of financial position as at 31 March 2013, the income statement, the statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal controls relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal controls.An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion 

In our opinion, the financial statements give a true and fair view of the financial position of the Company as at 31 March 2013, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

Emphasis of Matter

In view of their technical nature, we have placed reliance on technical/ commercial evaluation by the management in respect of categorization of wells as exploratory; development; and producing, allocation of cost incurred on them; internal estimation of proved / proved developed reserves and basis thereof, depletion of producing properties on the basis of the proved developed reserves and liability for abandonment costs.

KPMG

Date: 07 June 2013

Place: New Delhi

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