Great Eastern Discussion Threads

[judge jury] 30/5/2006 12:39

Sounds fine to me. No problems with drilling and sales just around the corner (earlier than I was expecting)

Great Eastern Energy Corp Ltd
30 May 2006

GREAT EASTERN ENERGY CORPORATION LTD

("Great Eastern" or "the Company")

2006 AUDITED FINANCIAL RESULTS

Great Eastern Energy Corporation Ltd, an AIM-listed company (GEEC:LN) incorporated to explore, develop, distribute and market Coal Bed Methane "CBM") in India, today announces its financial results for the year ending 31 March 2006, the company's first results since joining AIM.

Highlights

Great Eastern raised #12.1m and placed a further #6.9m of GDRs for existing shareholders at 101 pence per GDR at flotation in December 2005. The money raised for the Company is being used to accelerate project development, in particular in exploring and developing production wells for CBM. The company has also:

* Entered definitive contracts for well drilling and completion services

* Started drilling 20 production wells in January 2006. These wells are expected to be completed by October / November 2006; ten production wells have already been drilled

* Sales from pilot wells expected to commence from September 2006

* Commenced a second core hole program comprising of 4 core holes; 2 core holes have already been drilled

* Aiming to submit a Field Development Plan to the Directorate General of Hydrocarbons (DGH) within June 2006

* Put out a global tender for its next 20 wells program in April 2006

* Initiated cost reduction initiatives and dialogues for strategic tie-up for gas marketing

YK Modi, CEO of Great Eastern Energy said:

"Great Eastern has made significant operational progress in the last year. Not only have we completed a successful listing on AIM, we have also commenced commercial drilling and plan to complete the first phase of 20 production wells in the fourth quarter of the 2006 calendar year. We see significant opportunities for Great Eastern as the Indian market for natural gas continue to improve with both rising demand and prices."

[petemorr] 27/4/2006 10:28

Thanks gardenboy and Judge Jury. I'm in GPX as well - may put some of that in here. I think the back office systems contract is a good sign as well.

[judge jury] 27/4/2006 08:51

I am still invested and intend to remain so over the long term (at least 3-5 years). Given the lack of liquidity in the shares, I am basically viewing this as an investment in a private company. As I have said before, patience will be key.

The great news is that there is no exploration risk. Lots of gas is already flaring out of the ground. Signing of sales contracts is the next step and your links are encouraging on that front:

"A firm contract will be signed only in September or October when the company will have a fair idea of how much gas can be supplied," Y K Modi, chairman and managing director, GEECL, told Business Standard"

Also, it is somewhat encouraging to see them build up their back office systems - suggests they are confident that they will be running a commercial organisation shortly.

[gardenboy] 26/4/2006 21:26

pete,

currently out - making money on PANR,IEC,EEN and GPX to name a few

- must be due some news here surely

[petemorr] 26/4/2006 21:15

Anyone still there? I thought they were supposed to start on 20 wells in Q1? I'm thinking of getting in.

Couple of interesting articles found using google (both from March)

[gardenboy] 08/3/2006 15:56

took some profit today - looks like some others did as well, probably find it's a red hot tip somewhere now :~)

[judge jury] 03/3/2006 12:35

I understand that the quarterly report contains absolutely no new information in it. It is simply a summary of all the information that has already been released to the market over the previous quarter. Any new material information would presumably have to be released and disclosed in a full RNS anyway.

[gardenboy] 01/3/2006 14:49

oh well, guess I'll have to lick a stamp - seems a slow way of getting info though

[judge jury] 01/3/2006 13:39

Well there you go. Looks like we're getting quarterly updates. Perhaps they flagged this at listing. Must have missed it.

Press Release
1 March, 2006
Great Eastern Energy Corporation Ltd
Shareholders Update


Great Eastern Energy Corporation Ltd ("Great Eastern Energy" or the "Company"), an AIM-listed company (GEEC:LN) incorporated to explore, develop, distribute and market Coal Bed Methane ("CBM") in India, has today sent a quarterly update to its shareholders.

A copy of this can be obtained free of charge from Arden Partners Ltd, Nicholas House, 3 Laurence Pountney Hill, London, EC4R 0EU.

[judge jury] 28/2/2006 10:11

Not really. I guess we should expect a trading update ahead of the next set of results but I really dont know when this would be.

Realistically, I cant see there being much to report for a while. We know their drilling programme is well underway and the wells are chucking up a lot of gas. We also know that there probably wont be any sales until 2007. It is conceivable that they sign up a customer or two before this but I think it is safer not to anticipate this sort of thing.

As mentioned before, patience is the key. I prefer companies who are quietly getting on with the job, rather than those who are preoccupied with RNS announcements. Tuck these away and come back in 9 months I reckon.

[krutt] 28/2/2006 10:02

Judge, Any idea when we can expect some news here?

[judge jury] 28/2/2006 09:31

Looks like India's budget is fairly neutral - more spending on infrastructure, higher taxes. No direct impact on GEEC but nice to see the prospects for the general economy are still excellent

[gardenboy] 16/2/2006 16:02

krutt,

yup, still enjoying the sangria by the sea, cheers !

[krutt] 15/2/2006 17:39

My 160 prediction for the end of the week has been blown out of the water. 170 now expected, hope you are enjoying hols Garden boy.

[judge jury] 15/2/2006 13:18

Yup - but patience will be required. No point getting too excited too quickly. There may be periods with very little news. This is not a problem - work is still taking place. Also, there may be troubles ahead in the wider market - these are not selling opportunities, they are buying opportunities. For me, I am just tucking them away and more or less forgetting about them for a year or two.

[krutt] 15/2/2006 10:52

Judge,
Thanks for your comments and interesting insights.
I think we are on a winner here

[judge jury] 15/2/2006 10:10

I did meet with management briefly. However, I dont want to go into the details publicly. I obviously wasnt given any non-public information but I was able to put some of my (sometimes very basic) questions to them. I didnt take notes (which means my memory is tested more than it should be) but in very general terms they managed to convince me that:

- The reserves are both there and are basically guaranteed (within reason) to be extracted. The "possible" reserves are essentially "probable". This is key because they do not really need have the issue of finding the resource (faced by most energy exploration companies)
- There are no problems with the drilling programme (gas is well already firing out of the ground). Getting the drill in the first place was a bit tricky but this is now behind them. Wells are being dug very rapidly and the speed looks set to increase (learning by doing etc.)
- The company seems to have struck a good deal with the local government regarding royalties etc.
- Sales will come. We'll have to wait until next year and this is where shareholders will have to show a bit of patience. However, demand for energy in North East India is huge and growing - I think this is pretty obvious to everybody
- The existing shareholders (both the family and other original shareholders) are hugely bullish on the prospects for the business - none of them wanted to sell on listing but they had to in order to generate some liquidity in the shares
- I still have some reservations re corporate governance - the issues are all highlighted in the listing document and will not go away. But its always good to see the whites of peoples eyes and I think the business is generally being run properly. The risk is worth taking anyway.

[slapdash] 15/2/2006 09:47

Judge - thanks for that.... I haven't done enough research to make up my mind... but interesting comments..

don't like the large market cap when I don't understand or know about the potential....

But willing to be persuaded...

Did you meet the management??? Why are you bullish??

Slapper

[judge jury] 15/2/2006 09:43

Slapdash - Are you still watching this one? I just wanted to let you know that I did manage to put most of my questions to GEEC about 10 days ago and was satisfied with what I heard. The risks seem smaller than I imagined and seem very manageable and the potential is both pretty obvious and excellent.

Have therefore dipped my toe in (only £30k - would like more but the GDRs are ridiculously illiquid and this always scares me a bit). Its a Buy and Hold for 3-5 years in my view - 5-10x your money over a few years seems a reasonable bet.

Hi to the rest of you guys/gals watching this

[krutt] 14/2/2006 16:40

At this rate it could nearly be 170. Isn't it great to be in before the herd!

[gardenboy] 14/2/2006 16:07

just checking in - everything seems ok, so off for another walk to enjoy the sunshine and the almond blossom :-)

krutt, nearly there !

[krutt] 10/2/2006 14:47

Have a great time. 160 when you get back.

[gardenboy] 10/2/2006 13:11

krutt,

I'm off to Mallorca for a week, so I'll leave you in charge :~)