Half Yearly Report

2 December 2013

Great Eastern Energy Corporation Limited

("Great Eastern" or "the Company")

Interim Results

For the six months ended 30 September 2013

Great Eastern Energy Corporation Limited (LSE: GEEC), the fully integrated, leading Indian Coal Bed Methane (CBM) Company, is pleased to announce its Interim Results for the six months ended 30 September 2013.

Highlights

Financials:

· Total revenue increased by 11% to US$ 16.03m (Six month period year ended 31 March 2013: US$ 14.47m)

· On a constant currency basis total revenue has increased by 21% to Rs. 947.53m (Six month period year ended 31 March 2013: Rs. 783.69m)

· EBITDA increased by 31% to US$ 11.39m (Six month period year ended 31 March 2013: US$ 8.71m)

· On a constant currency basis EBITDA increased by 43% to Rs. 673.26m (Six month period year ended 31 March 2013: Rs. 471.73m)

· PAT pre MTM* increased by 67% to US$ 7.14m (Six month period year ended 31 March 2013: US$ 4.28m)

· On a constant currency basis PAT pre MTM* increased by 83% to Rs. 422.05m (Six month period year ended 31 March 2013: Rs. 231.80m )

· PAT after MTM* profit of US$ 0.27m (Six month period year ended 31 March 2013: US$ 3.39m)

· On a constant currency basis PAT after MTM* profit of Rs. 15.96m (Six month period year ended 31 March 2013: Rs.183.60m)

· The Company has a net debt of US$ 103.95m as at 30 September 2013

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

Upstream:

Raniganj (South) Block: 

· Production capacity increased to 21.31mmscfd, up 23% from as announced on 10 June 2013 and 70% from as announced on 29 October 2012

· Average sales for November 2013 increased to 10.10mmscfd, up 40% from average sales for May 2013

· A total of 156 wells drilled; including 56 directional / deviated wells successfully drilled

· Total of 148 wells dewatering / producing gas, a 17% increase from June 2013 and a 37% increase over the previous year

Mannargudi Block:

· Approvals anticipated from the State Government

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

Raniganj (North) Block:

In May 2013, Oil and Natural Gas Corporation Ltd. ("ONGC") awarded a 25% Participating Interest in Raniganj (North) Block, which is adjacent to our Raniganj (South) Block. This 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 customers while adding further new industrial customers

· 40.59 mmscfd gas under contract / MOU, an increase of 7% from October 2012.

Outlook

· Commence work on the Mannargudi Block once 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

· 144 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, said:

"The production capacity continues to grow from the Raniganj (South) block. The revenues and sales volume continue to show good growth. We have an active drilling programme on the Raniganj (South) block to fully develop the area, with approval anticipated from the State Government for our other Mannargudi Block and we are finalising farm-in agreements for the Raniganj (North) Block. We have plenty to do with our current acreage and we are looking forward with confidence."

A presentation for analysts will be held at 9am on the day at the offices of Macquarie Capital

(Europe) Limited, Ropemaker Place, 28, Ropemaker Street, London EC2Y 9HD

IPO Disclaimer: http://www.geecl.com/disclaimerClause.html

For further information please contact:

Great Eastern Energy

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

Prashant Modi President & COO

Goldman Sachs International

Alastair Maxwell +44 (0)20 7774 1000

Duncan Stewart

Arden Partners

Richard Day +44 (0)20 7614 5917

Katelin Kennish

Macquarie Capital (Europe) Limited

Steve Baldwin +44 (0)20 3037 2362

Shore Capital

Pascal Keane +44 (0)20 7408 4090

Jerry Keen

Chairman's Statement

Financials

In the first six months of FY 2013-14 Great Eastern made material progress across the business, delivering significant growth in production, revenue, and profit.

Total revenue increased by 11% to US$ 16.03m as compared to the six month period ended 31 March 2013, while EBITDA increased by 31% to US$ 11.39m. On a constant currency basis, total revenue has increased by 21% to Rs. 947.51m and EBITDA increased by 43% to Rs. 673.26m.

At the PAT level, pre MTM (Mark to Market) the company has made a significant profit of US$ 7.14m as compared to a pre MTM profit of US$ 4.28m in the six month period ended 31 March 2013, an increase of 67%. On a constant currency basis, PAT level pre MTM increased to 82% to Rs. 422.05m. MTM is on account of the restatement of the foreign currency loans and derivatives.

The Company has a net debt of US$ 103.95m as at 30 September 2013, with various leading banks. The Company has drawn down Rs. 2.13billion (~ US$ 33.93m) out of the debt facility of Rs. 2.45billion (~ US$ 39.03m).

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.

Reserves, Drilling & Production

We continue to make progress in production ramp-up. A total of 156 wells have now been drilled at our Raniganj (South) block, with a total of 148 wells dewatering / producing gas, a 17% increase from June 2013 and a 37% increase over the corresponding period in the last year.

The commencement of drilling directional / 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.

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 as of 6 February 2003. This is subject to execution of Farm-in related Joint Operatorship agreements with ONGC (along with its consortium) and the approval from the Government of India.

Sales, Marketing, & Distribution

Since October 2012 additional contracts were signed for 2.49 mmscfd. In total, the Company has 40.59 mmscfd of gas under contract / MOU. This represents an increase of 7%.

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 has received the Environment Clearance and approval is anticipated from the State 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 Indian IPO is being conducted in order to raise further fundsfor the Company, for drilling and completion of CBM wells in the Raniganj (South) Block and for general corporate purposes.

The Company has filed its Draft Red Herring Prospectus (DRHP) with Securities and Exchange Board of India (SEBI) on 16 September 2013 and is awaiting regulatory approvals.

CSR

I'm pleased to inform that in the first ever Economic Times Bengal Corporate Awards in March 2013, the Company was 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 of the first six months of FY 2013-14. 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 approvals, and being selected as the preferred bidder by ONGC on the Raniganj (North) block brings in another encouraging area of development into our operations.

Looking further ahead we have an exciting drilling schedule with 144 wells planned to be drilled over the next four years on the Raniganj (South) Block alone.

Please click on the link below to view the full Interim Results:

 http://www.rns-pdf.londonstockexchange.com/rns/3573U_-2013-11-29.pdf