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.

8 July 2022

Great Eastern Energy Corporation Limited

("Great Eastern" or "the Company")

 Full Year Results Year ended 31 March 2022

Great Eastern Energy Corporation Limited (LSE: GEEC), the fully integrated, pioneering Indian Coal Bed Methane ("CBM") Company, is pleased to announce its Preliminary Results for the 12 months ended 31 March 2022.

Abridged Financials for 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

** Additional depreciation during FY 2022 is USD 2.30m

*** Per GDR

**** Pricing is based in Indian rupee ("INR")

$ - U.S. Dollar

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

·    As announced on 8 July 2022, while both 3P and 3C numbers have increased, there has been a reduction in 1P numbers which has resulted in a higher depreciation charge as per the accounting standards.

·    FY 2021 and part of FY 2022 were unprecedented years with the COVID-19 pandemic, which had an adverse impact on Sales.  To mitigate this impact, the Company had taken appropriate measures to optimize costs and increase efficiencies. The cash profit has gone up by 23.77% on a constant currency basis.

·    The average gas sales prices received remained strong, and the Company continues to be profitable.  Encouragingly, operations continue to grow with gas production increasing from an average of 15.18 mmscfd in FY 2021 to an average of 15.86 mmscfd in FY 2022, including choked production.

·    As announced on 11 November 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 9.48% in the FY 2022.  This has now further been reduced to 9.37% in the ongoing FY 2023. 

·    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 announced on 8 July 2022):

§ Best estimate OGIP of 6.13 TCF

§ High estimate OGIP of 10.62 TCF

§ 3P+3C+3U of 3,628.19 BCF, i.e. 3.63 TCF

§ Undiscounted value of 3P+3C+3U: $29.36 billion

§ PV 5% value of 3P+3C+3U: $17.17 billion

§ PV 10% value of 3P+3C+3U: $10.94 billion

·      As announced on 23 June 2022, Company has executed an amendment to its petroleum mining lease ("PML") for the Raniganj (South) block with the West Bengal Government for exploration and production of Shale resources along with CBM. The Company will now make plans for undertaking the initial Shale core wells and, based on the results obtained, will then progress to undertake a development plan to drill pilot Shale production wells.

·    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 year ended March 2022 was lower by 7.8% compared with the corresponding period of the previous year.  As per the publicly available data, the long term delivered LNG price in India in March 2022 was $15.95/mmbtu as against $12.20/mmbtu in March 2021.  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:

"With the amendment to our PML enabling us to move forward with our Shale program and the significant uplift in the resource and reserves, it provides a fantastic growth opportunity for Great Eastern.  Moreover, gas sales prices, revenue, and sales volume have largely remained resilient.  Our cost cutting measures and increasing efficiencies have yielded results. 

Energy prices have exceeded pre-pandemic levels with international oil prices currently above $100 per barrel along with strong gas prices worldwide.

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.

On 7 July 2022, we were delighted to announce our inaugural ESG Report. At Great Eastern, we have found it imperative to establish a channel for communicating and aligning our stakeholders with our values, and the steps we have been taking to combat issues such as, but not limited to, environmental damage, social injustice, and governance."

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 10.62 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.