The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018.  Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

11 November 2021

Great Eastern Energy Corporation Limited

("Great Eastern" or "the Company")

 Half Year Results for the six months ended 30 September 2021

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 6 months ended 30 September 2021.

Abridged Financials for H1 FY 2022:

* 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 Indian rupee ("INR")

$ - U.S. Dollar

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

·    FY 2021 was an unprecedented year with the COVID-19 pandemic impacting global supply chains, amidst the biggest global health crisis ever faced.

·    As announced on 14 July 2021, the COVID-19 pandemic had an adverse impact on Sales that were further compounded by the subsequent national lockdown that occurred in India.  However, to mitigate this impact, the Company has taken appropriate measures to optimize costs and increase efficiencies. 

·    Although sales volumes were impacted by the economic impact of the COVID-19 pandemic, reassuringly, the average gas sales prices received held up and remained strong, and the Company remained profitable.  Encouragingly, operations continue to grow with gas production increasing from a full year average of 15.20 mmscfd to an average of 15.87 mmscfd in October 2021, including choked production.

·    As announced on 14 July 2021, the Company continues to focus on optimising its debt coupon rate and had been able to reduce the same from 10.32% in FY 2021 to 9.58% in the ongoing FY 2022.  This has now further been reduced to 9.48% in the ongoing FY 2022.  Due to this, there will an annual saving, in FY 2022, of ~ $0.51m.

·    The Company is profitable and cash generative and continues to maintain sufficient liquidity to meet all of its financial obligations on time.

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

·    As announced on 14 July 2021, for the Shale exploration program, the Company continues to be in the process of obtaining the balance of final approvals which are expected later this year.  

·    As announced on 14 July 2021, GAIL (India) Limited partially commissioned the "Jagdishpur - Haldia & Bokaro - Dhamra pipeline" on 6 February 2021.  Further work on laying the pipeline section to Kolkata is underway and has made progress. The transportation tariff of this pipeline has been fixed at INR 71.08/mmbtu ($0.96/ mmbtu) including 12% of Goods and Services Tax.

·    India's cumulative LNG imports for the current year till September 2021 was lower by 0.8% compared with the corresponding period of the previous year.  As per the publicly available data, the current average long term delivered LNG price in India is $13.41/mmbtu.  Transporting this gas to the eastern region via the above-mentioned pipeline would entail additional transportation costs mentioned above and other costs to customers in eastern India.  Great Eastern believes the resulting gas sales price ex pipeline to customers in eastern India will be in sync with its current average selling price and, together with the pipeline, will allow Great Eastern to sell additional gas sales volumes to new customers that will be financially attractive.

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

"Despite the impact of the Global COVID-19 pandemic, and a slowdown in the growth rate of the Indian economy, gas sales prices, revenue and sales volume have largely remained resilient.  The Board would like to reiterate that the Company's business and balance sheet has been able to comfortably withstand the severe impact of these unprecedented events. 

"In response to the pandemic, we had implemented a focused plan of optimising production, cutting costs and increasing efficiencies which have yielded results. 

"Encouragingly, during the current financial year, energy prices have exceeded pre-pandemic levels with international oil prices currently above $80 per barrel and also strong gas prices world wide.

"We are pleased to see the progress on the GAIL pipeline which, on completion, will allow us to pursue further material growth into the large and untapped industrial market of the wider State of West Bengal.  We also look forward to progressing our Shale exploration and appraisal project that represents another excellent growth opportunity once all approvals are in place.

"With the steps being taken by the government to accelerate the growth of the Indian economy, demand for hydrocarbons in India is and will continue to grow, where development of indigenous gas reserves like those held by Great Eastern can make a meaningful contribution."

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.