20th Aug 2007 07:02
Great Eastern Energy Corp Ltd20 August 2007 Press Release 20 August, 2007 Great Eastern Energy Corporation LTD Production and Debt Facility Update Great Eastern Energy Corporation Limited ("Company", "GEECL", Great Eastern")(AIM: GEEC.L), a Company involved in the exploration, development and productionof coal bed methane (CBM) in India, is pleased to provide the following tradingupdate. Since the Preliminary results on 6th June 2007, the Company has continued tomake solid progress. Current production is consistently between 1mmcfd and 1.5mmcfd from 9 of thecurrent 18 wells dewatering (of a total of 23 wells drilled), representing anaverage increase of 150% over June. In the last week, production from these 9wells has averaged 1.3mmcfd. This increase follows the fitting of filters to thepumps on these 9 wells to remedy the sand problems affecting the dewateringprocess and subsequent production levels. The remaining nine wells are expected to have filters fitted and to be fullydewatering by the end of August 2007. Construction of the Gas Gathering Stationis continuing and is on schedule, with the delivery of the pipelines havingcommenced last month. Following discussion with a consortium of banks, Great Eastern is also pleasedto announce is has gained approval from the State Bank of India, the lead bank,for a US$ 25 million debt facility. It is anticipated that this will be followedby further commitments from the bank's subsidiaries or other consortium membersin the near future. The debt facility enables the Company to progress the nextphase of wells, with preparation for this phase nearing completion and withdrilling expected to commence in approximately two months. Commenting, YK Modi, Chairman and CEO of Great Eastern, said: "The Company has made significant process in the last few months. By fitting thefilters we have resolved the dewatering problems and production has increasedsignificantly as a result. The provision of this initial debt facility is alsoanother strong validation of Great Eastern. Our first customer, Shree BalajiGlass Manufacturing Pvt. Ltd., is extremely satisfied and is looking atincreasing his plant capacity due to the availability of CBM. Demand for gas inIndia continues to grow and CBM will play an important part in meeting thisgrowing energy need." -ENDS- For further information: Great Eastern EnergyYK Modi Chairman & CEO + 44 (0) 20 7743 6663Prashant Modi President & COOPelham Public RelationsPhilip Dennis +44 (0)20 7743 6663Hugh Barker +44 (0)20 3008 5009 Arden PartnersRichard Day +44 (0)20 7398 1632Tom Fyson Notes to Editors: Great Eastern Energy Corporation Ltd. ("Great Eastern") raised £19m in December2005 through an admission of Global Depositary Receipts (GDRs) on the AIMmarket. The Company has a notional market capitalization of £ 163 m ($ 330 m) Great Eastern holds a licence to explore for CBM in the 210 sq km block in theRaniganj Coalfields, West Bengal. For more information please visit www.geecl.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
GEEC.L