3rd Jun 2015 07:00
June 3, 2015
Great Eastern Energy Corporation Limited
("Great Eastern" or "the Company")
Reserves update
Great Eastern Energy Corporation Limited (LSE: GEEC), the fully integrated, leading Indian Coal Bed Methane (CBM) company is pleased to announce today an upgrade in its reserves.
Reserves update:
We are reporting an increase in reserve numbers at the Raniganj (South) license area, situated in West Bengal, which has been provided by the independent reserve engineers, Advance Resources International, Inc. (ARI) on May 31, 2015.
· Proved reserves (1P) increased 232.61% to 259.10 BCF (from 77.90 BCF as at December 2013)
· Proved, and Probable reserves (2P) increased 137.12% to 442.70 BCF (from 186.70 BCF as at December 2013)
· Proved, Probable, and Possible reserves (3P) increased 87.64% to 543.40 BCF (from 289.60 BCF as at December 2013).
· 3P NPV 10%* of US$ 1.09 billion, and undiscounted US$ 3.34 billion
· Original-Gas-In-Place (OGIP) increased 7.38% to 2.62 TCF (from 2.44 TCF as at December 2013)
* Net present value at a discount rate of 10%
Reserve Classification System | As on | As on | % Change | Total Future Net Revenues ($ Million) | ||
31-Dec-13 | 30-Nov-14 | |||||
(Gross) | (Gross) | Undiscounted | NPV 10% | |||
Reserves (BCF) | 1P | 77.90 | 259.10 | 232.61% | $1,606 | $602 |
2P | 186.70 | 442.70 | 137.12% | $2,732 | $946 | |
3P | 289.60 | 543.40 | 87.64% | $3,338 | $1,094 | |
Contingent Resources (BCF) | 1C | 91.60 | 169.90 | 85.48% | $1,048 | $104 |
2C | 257.30 | 274.30 | 6.61% | $1,698 | $170 | |
3C | 424.10 | 419.80 | (1.01)% | $2,583 | $275 | |
OGIP (TCF) | Best Estimation | 2.44 | 2.62 | 7.38% | ||
The changes in 1P, 2P, and 3P reserves are a result of new wells coming on production in new areas, and an increase in estimated recoveries based on historical production and the upward revision of OGIP.
Commenting Prashant Modi, President and COO of Great Eastern said:
"We are delighted that we are delivering on our strategy of optimising production from existing wells and continuing to build on our resource potential. The substantial increase in reserves with a 3P NPV of US$ 1.09 billion, are third party fully verified and endorse the strength of our growth strategy.
The supply/demand balance for gas in India is still strong and we are seeing continued interest from new industrials customers, for which we are very well positioned to deliver."
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 six months to 30 September 2014, the Company increased its turnover by 21% to US$19.45m, EBITDA by 14% to US$12.97m and cash generation by 23% to US$10.77m.
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
Steve Douglas +44 (0)20 7614 5900
James Felix
Camarco
Ginny Pulbrook +44 (0)20 3757 4980
Billy Clegg
Georgia Mann
Explanatory Notes: Reserves are those quantities of petroleum which are anticipated to be commercially recovered from known accumulations from a given date forward. Contingent resources are those quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from known accumulations. |
Notes to Editors
Advance Resources International, Inc. (ARI) is a leading, recognized independent petroleum evaluators with substantial international experience. They have conducted this assessment in accordance with the classification guidelines set out in the Society of Petroleum Engineer's Petroleum Resource Management System (SPE, PRMS).
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