Full Year Results Year ended 31 March 2015

22 July 2015

Great Eastern Energy Corporation Limited

("Great Eastern" or "the Company")

Full Year Results Year ended 31 March 2015

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 2015.

Highlights

Financials: Continued growth in key metrics

· Total revenue increased by 9% to US$ 37.46m (2014: US$ 34.44m)

· EBITDA increased by 4% to US$ 24.80m (2014: US$ 23.92m)

· Cash generation increased by 13% to US$ 20.21m (2014: US$ 17.90m)

· PBT pre MTM / DTE* increased by 13% to US$ 16.83m (2014: US$ 14.84m)

· PAT pre MTM / DTE* increased by 12% to US$ 16.17m (2014: US$ 14.50m)

· PAT post MTM / DTE* increased by 11% to US$ 11.35m (2014: US$ 10.20m)

· The Company has a net debt of US$ 93.67m as at 31 March 2015 with a debt:equity ratio of 1.08

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

DTE (Deferred Tax Expense) is on account of difference in depreciation rates used for financial accounts and tax accounts and other expenses like exchange fluctuation / MTM

Operational and Corporate Highlights: management strategy delivering results

· Installation of new lower capacity pumps are delivering a positive impact on current production and setting the scene for higher volume future production targets

· Production increased by 10% to 12.81 mmscfd in FY 2015 (11.70 mmscfd for the 12 months ended 31 March 2014)

· Production increased by 18% to 15.06 mmscfd in July 2015 (12.81 mmscfd average for the 12 months ended 31 March 2015)

Pipeline and Pump optimisation results:

· 17% increase in gas flow (by 1,581 mcfd) as a result of pipeline optimisation. Out of the total entailed optimisation, 50% has been completed. Further improvement in gas flow is anticipated with more optimisation being carried out of the pipelines

· 176% increase in gas flow (by 475 mcfd) as a result of pump optimisation. Further improvement in gas flow is anticipated as a result of regular dewatering

* Pricing is based in Rs.

· A total of 156 wells have been drilled, which provides a substantial base for production growth, as they continue to dewater and are further optimised

· 150 wells fracced which are currently producing and / or dewatering

· Increase in Reserves as announced on June 3, 2015; report done by independent reserve engineers Advance Resource International, Inc. (ARI)

· Recovery factor increased to 55% from 30%, in the low estimate

· OGIP has increased to 2.62 TCF from 2.44 TCF (2005: 1.39 TCF)

Outlook Highlights: confident for the future

· Decisive action taken to maximise production at Raniganj (South) block providing results and setting the scene for further upside

· 144 further wells planned to be drilled on the Raniganj (South) block

· Operational strategy in place is to continue to maximise production from existing wells and to continue to pursue sales opportunities in the highly industrialised region of Asansol-Raniganj-Durgapur through our own dedicated pipeline network

Favourable Indian Market conditions:

· Improved political and economic environment in India provides a positive demand outlook

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

"Management's strategy is delivering good growth in revenues, sales volume, and profitability. We have the opportunity to sustain this growth through our current reserves and producing acreage alongside our production optimisation programmes. We are, therefore, looking forward to the future with confidence."

About the Company

The Company is a fully integrated gas production, development and exploration company in India, providing gas to the growing industrial region of West Bengal. Gas is being produced (Coal-Bed Methane gas) from the Raniganj (South) license area, which covers 210 sq. km, with 2.62 TCF of Gas-in-Place. 

The Company's second asset is the Mannargudi license situated in the state of Tamil Nadu in India, which covers an area of 667 sq. km and 0.98 TCF Gas-in-Place.

In the year ended as on 31 March 2015, the Company increased its turnover by 9% to US$ 37.46m, EBITDA by 4% to US$ 24.80m and cash generation by 13% to US$ 20.21m.

For further information please visit www.geecl.com

For further information please contact:

Great Eastern Energy

Yogendra Kr. Modi Chairman & CEO +44 (0)20 7614 5917

Prashant Modi President & COO

Arden Partners

James Felix +44 (0)20 7614 5900

Ciaran Walsh

Camarco  

Ginny Pulbrook +44 (0)20 3757 4992

Billy Clegg

Georgia Mann

Financials

Chairman's Statement

In the 12 months to 31 March 2015 Great Eastern made material progress across the business, delivering significant growth in production, revenue, and profit.

Total revenue increased by 9% to US$ 37.46m as compared to the corresponding previous financial year, while EBITDA increased by 4% to US$ 24.80m. The Company has a net debt of US$ 93.67m as at 31 March 2015 with a Debt:Equity ratio of 1.08, improving from 1.39 as at 31 March 2014.

Sales increased by 12% to 3.73 bcf this year compared with 3.33 bcf in the previous year.

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

Operational update: Reserves, Drilling & Production

As announced in June 2015, the independent reserve engineers, Advance Resources International, Inc., have increased the Recovery factor to 55% from 30%, in the low estimate and the Original-Gas-In-Place (OGIP) to 2.62 TCF (from 2.44 TCF), an increase of 7.38%. Since we listed in 2005, the OGIP has increased substantially from 1.39 TCF at that time.

Management's focus on improving production by the installation of new lower capacity pumps is now delivering a positive impact on current production and setting the scene for higher volume future production targets.

Average production increased by 10% to 12.81 mmscfd in FY 2015 from 11.70 mmscfd in FY 2014.

Production increased by 18% to 15.06 mmscfd in July 2015 from 12.81 mmscfd average for the 12 months ended 31 March 2015.

In addition, improved results have been achieved from optimising the pipelines. These are encouraging and have resulted in an increase of 17% in gas flow (by 1,581 mcfd). Out of the total entailed optimisation, 50% has been completed. Further improvement in gas flow is anticipated with more optimisation being carried out of the pipelines.

Due to the successful pump optimisation, we have been able achieve a 176% increase in gas flow (by 475 mcfd). Further improvement in gas flow is anticipated as a result of regular dewatering.

* Pricing is based in Rs.

We continue to make progress in production and sales ramp-up. A total of 156 wells have now been drilled at our Raniganj (South) block, which, with planned dewatering and optimisation measures provides a substantial base for production growth.

Sales, Marketing, & Distribution

The Company has 44.16 mmscfd of gas under contract / MOU, an increase of 3.91% from December 2014.

Great Eastern is well placed to supply gas in and around the highly industrialised region of Asansol-Raniganj-Durgapur through its own dedicated pipeline network.

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 has received Environment Clearance and approval is awaited from the State Government of Tamil Nadu.

The current minimum work programme consists of 30 pilot production wells and 50 core holes.

The block is currently under Arbitration with the Government.

CSR

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.

Indian Economy

The growing Indian economy will provide continued strong gas demand:

· There is political stability in India giving a clear direction to the economy, which is showing signs of a "Turnaround", according to the OECD's latest survey

· Government has launched a campaign for promoting manufacturing in India, which has attracted fresh investments in the sector

· GDP growth rate is expected to recover to 6.6% in 2015-16 and the new Government expects growth to reach 7% - 8% in two years

· The Government has fast-tracked stalled projects and is taking steps to make project clearance streamlined. In addition it has liberalised foreign indirect investment in insurance, defence production, and critical areas

· The twin deficits are down with a fiscal deficit targeted at 4% and current account deficit at 1.6% of GDP in 2015-16

· Consumer Inflation is down to 4.9% in April 2015 and the Government is taking proactive steps to contain food price rises through the creation of a stabilisation fund and managing a large food buffer stock

· In addition the Budget has ruled out any fresh retrospective taxation. Outstanding issues are being resolved and there is an emphasis on raising savings rates to push up investments

· The Indian stock markets are the best performing amongst emerging market economies (EMEs)

Outlook

We are well placed to build on the success of the 12 months to 31 March 2015. We plan to drive production and sales growth in the Raniganj (South) block through the optimisation process undertaken by the Company, which are already delivering the desired results.

With the new Government in place, we are confident that the general economic conditions will improve thereby giving a new impetus to growth.Click on, or paste the following link into your web browser, to view the accompanying financial statements.

http://www.rns-pdf.londonstockexchange.com/rns/6945T_-2015-7-21.pdf