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11 November 2020

Great Eastern Energy Corporation Limited

("Great Eastern" or "the Company")

 Half Year Results for the six months ended 30 September 2020

Great Eastern Energy Corporation Limited (LSE: GEEC), the fully integrated, leading Indian Coal Bed Methane ("CBM") Company, is pleased to announce its reviewed half year results for the six months ended 30 September 2020.

Abridged Financials for H1 FY 2021:

$ - U.S. Dollar

INR - Indian Rupee

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

** Per GDR

*** Pricing is based in INR

·    The full set of the reviewed half year financial statement is available at the following link: https://www.geecl.com/financials.php

·    Due to COVID-19, there was a national lockdown in India from March 23, 2020 until the end of June 2020, which was thereafter gradually relaxed.  This had an adverse impact on sales in H1 FY 2020 - 2021.  The Company has taken appropriate measures to minimize the impact by optimizing costs and increasing efficiencies.

·    The Company continues to maintain sufficient liquidity to meet all of its financial obligations and had not availed itself of the optional debt moratorium allowed by the Reserve Bank of India due to COVID-19. 

·    Shale gas and CBM reserves and resources in the Raniganj (South) block (as previously announced on November 15, 2018):

o  OGIP of 6.13 TCF (best estimate) / 9.25 TCF (high estimate)

o  3P + 3C + 3U is 2,988.40 BCF (2.99 TCF)

·    Undiscounted value of $13.78 billion

·    Discounted value of $4.31 billion

·    According to market reports, GAIL (India) Limited's upcoming "Jagdishpur - Haldia & Bokaro - Dhamra pipeline" is expected to be operational by February 2021.  This pipeline will provide the Company with the opportunity to expand its customer base and sales significantly by accessing the huge market of Kolkata and also to the wider State of West Bengal.  The transportation tariff of this pipeline has been fixed at Rs. 71.08/mmbtu (~$0.96/mmbtu) including 12% for Goods and Services Tax.

·    India LNG imports for September 2020 were ~5% higher than September 2019 and the cumulative imports for H1 FY 2020 - 2021 were ~3% lower than period of H1 FY 2019 - 2020.  As per the publically available data, the average delivered LNG price for H1 FY 2020 - 2021 was $7.49/mmbtu.  Transporting this to the eastern region, via the above mentioned pipeline, would entail the additional transportation tariff mentioned above.

Prashant Modi, Managing Director & CEO of Great Eastern, said:

"The COVID-19 pandemic and associated economic slowdown globally and in India has created severe challenges across the spectrum.  With repeated lockdowns worldwide, we expect this situation to continue until one of the many vaccines being developed becomes available.  There has been some positive news on the vaccine earlier this week and we hope for a positive outcome.  Encouragingly, the Company's business and balance sheet has been able to comfortably withstand the severe impact of these events.

With the steps taken by the government to accelerate the growth of the Indian economy due to COVID-19, demand for hydrocarbons in India has grown post June 2020."

About the Company

A fully integrated gas production, development and exploration Company in India. Gas is being produced from the Raniganj (South) block in West Bengal, which covers 210 sq. km with 9.25 TCF of Original Gas-in-Place.  The Company's second license is the Mannargudi block in Tamil Nadu, which covers 667 sq. km with 0.98 TCF of Original Gas-in-Place.