Great Eastern Discussion Threads

[dibbs] 12/5/2008 21:08

Just realised that the article above is actually on the GEEC website.

This breakout is on very low volume, although daily volume is generally low here anyway. Be interesting to see the forthcoming results.

Dibbs

[dibbs] 12/5/2008 20:59

RANAG9,

I came across this on the net. Worth a read, it certainly seems as though things are moving forwards for GEEC.



Dibbs

[dibbs] 12/5/2008 09:18

GEEC really motoring today! Speculative buying ahead of results or people with knowledge buying ahead of some positive news?? Gas production ahead of targets??

Have to wait and see.

Dibbs

[ranag9] 08/5/2008 17:33

Still time to make money with GEEC.
Dibbs u r right
Once GEECL launches its IPO it will fly so get aboard

[dibbs] 08/5/2008 16:26

On second thoughts I'll live with the breakout today!!

[dibbs] 08/5/2008 08:59

A bit of interest here today, now within touching distance of the resistance of the previous highs. With GEEC having followed such a nice uptrend thus far, a breakout has to be a distinct possibility within the next few days....

Dibbs

[ranag9] 01/5/2008 21:20

I think it is right time to buy few hundreds as director is accumulating lately.In India you can sell anything anywhere and it is methane gas. Once their IPO is in the market then you won`t find GEEC at present price. I hope its share price reaches 220 when IPO is out (my guess) dyor

[dibbs] 30/4/2008 10:38

I'm surprised that GEEC do not have more of a following here. I'm sure that sale prices being realised will be higher than those originally forecast, meaning that previous estimates shold now be too conservative.

Looks like on to keep an eye on.

Dibbs

[ranag9] 14/2/2008 21:37

IPO for GEEC coming to Indian market soon.They have started to sell compressed Methane in India where there is and will always be demand for it. Time to buy if can.Go to its website www.geecl.com and read yourself.DYOR

[buffin] 03/9/2007 15:35

Last week, London-listed Great Eastern Energy became the first company to extract and sell coal-bed methane commercially in India. It is investing $150 million to drill a total of 103 wells in the state of Bengal. By some estimates, India has the world's fourth-largest coal reserves. Analysts say the Gurgaon, India-based firm has already moved beyond the riskiest phase of exploration and pilot drilling and is
moving into production.

Arden Partners, a London securities firm, has a "buy" on the stock. James Elston, a director of the energyresearch firm Palladian Energy - who has analyzed Great Eastern Energy on behalf of Arden - estimates that the company's net asset value is about 218 pence ($4.41) a share, based on analysis of their recoverable methane reserves. The shares traded yesterday around 150 pence.

WSJ Asia 1 August

[judge jury] 16/7/2007 13:09

No delays and very decent price from the looks of it. Nice that the PM of India has found time to comment too. Definitely friends in the right places

16 July, 2007
Great Eastern Energy Corporation Ltd.
("Great Eastern", "GEECL" or the "Company")
Sales of Gas commence


Great Eastern (AIM: GEEC.L), a Company involved in the exploration, development and production of coal bed methane (CBM) in India, is pleased to announce, as outlined at the time of the Group's preliminary results in June, that it has commenced initial industrial sales of CBM as well as sales of Compressed Natural Gas "CNG" for vehicles in and around Asansol, West Bengal, India.

The delivered price being obtained by GEECL is between $13 to $15 / mcf.

The occasion was inaugurated by Mr.Nirupem Sen, Hon'ble Minister of Commerce and Industry, West Bengal, who said "The commencement of sales of CBM will change the face of industrialisation and reduce pollution in the state of West Bengal."

The Prime Minister of India, Dr. Manmohan Singh, commented, "I am pleased to learn that Great Eastern Energy Corporation limited is making the first sale of its gas at Asansol. It is note worthy that this will be the first Coal Bed Methane sale in India. The commercial exploitation of Coal bed Methane will certainly help in meeting India's growing energy needs."

Mr YK Modi, Chairman and Chief Executive Officer, GEECL, added, "

"We are proud to be India's first private sector company to venture into Coal Bed Methane exploration, production and distribution. India's continued economic growth is dependent upon meeting the growing energy demand. We believe that the production and adoption of CBM can play an important part in meeting the energy shortage in a cost efficient and clean fashion."


ENDS-

[gardenboy] 05/7/2007 09:01

why can't ENK release something like this,

5 July, 2007


Great Eastern Energy Corporation Ltd.

("Great Eastern", "GEECL" or the "Company")

Environmental clearance obtained


Great Eastern (AIM: GEEC.L) is pleased to announce that it has received
environmental clearance from the Ministry of Environment and Forests (Government
of India) for the exploration, production and commercial production of Coal Bed
Methane ("CBM") from its licence area in the Raniganj Coalfields, West Bengal.
India. This follows the approval of Great Eastern's field development programme
by the Directorate of Hydrocarbons in March 2007.

Great Eastern's pioneering initiative, the first of its kind in India, will lead
to the demethanisation of coal beds across the entirety of the licence area.
This will result in the prevention of harmful methane emissions being released
into the atmosphere, whilst simultaneously harnessing this potential
environmental hazard into an efficient energy resource.

The Environmental clearance has been granted for the first time to a CBM project
in India. This gives GEEC regulatory clearance to drill further wells and marks
the achievement of yet another milestone for the Company.

GEECL has already drilled 23 production wells and proposes to drill a further 80
production wells in a phased manner over a period of 3 years. The field
development plan encompasses a pipeline structure and a Gas Gathering Station
which will provide the necessary infrastructure to centralise, pressurise and
distribute the gas to customers.

Mr. YK Modi, Chairman and CEO, GEECL commented;

"We are delighted to have obtained environmental clearance for our development
programme and are looking forward to starting commercial production. The
Government of India continues to promote the use of non conventional, less
polluting energy sources. CBM offers one alternative energy source and we are
delighted to have received another indication of the Government's continued
support for our pioneering project."

[rapier686] 16/6/2007 14:20

Hadn't spotted that. But the group gathering station is presumably sized to be used by a lot more than these first 23 wells. In particular it will "increase the efficiency of the second phase of drilling".

My questions were to get a handle on the economics - ie possession of the licence area allows them to spend $20m on drilling and get $4m/yr of gas coming out. Sure they can repeat the trick as often as they like (subject to the gas on their licence area) - but it only looks like a 10-15% return on capital. We can reasonably expect future drilling to be more economical, so say 15-20% going forwards. Positive and viable but not stunning.

[judge jury] 16/6/2007 11:38

GEEC obviously think they will get up to 10mmcfd relatively shortly

"The Group Gathering Station will have a flow capacity of 11.5mmscfd and will
have a two-level gas compression system."

[rapier686] 15/6/2007 18:06

Thanks for those answers JJ. So some further improvement in flow rates will be expected, but not that huge.
So roughly $20m of capex on this block of wells will be producing roughly 1.5mmcfd or 0.5Bcf/yr and so revenue around $4m/yr. And 1Tcf would last forever at that rate!

Economic but maybe not such a huge NPV. If they were en-route to 10mmcfd then it would be a completely different ball-game.

[judge jury] 15/6/2007 17:47

Is this giant finally waking up?

[ranag9] 15/6/2007 17:42

Once GEEC start selling their compressed gas in Indian Market this share is bound to go up as there is no shortage of customers i.e.High demand and low supply. We are very near to production on market scale hence good northward movement is emminent.Price has started to go upward. DYOR

[rmainee] 11/6/2007 10:41

Recently rated on British Bulls...

[gardenboy] 11/6/2007 08:52

some movement this morning

[judge jury] 06/6/2007 13:14

I am no expert, but here are some comments:

What production is to be expected when all 23 are fully on-song?
I think the only info we have been given on this is the 1.5mmscf/day by the end of July. In the interim results they said that they expected to have saleable production of between 1.5-2 MMSCFD by mid 2007 and that production will gradually increase after that.

We were also told in the Feb 07 trading update that the most productive of the wells were then producing 200mcfd.

Also, on the website it says that "The current demand for gas in the licence area is estimated at 4.3-5.7 MMSCMD(150-200 MMSCFD), which is more than double of the Company's peak expected production level."

What proportion of the resources this patch of wells are attempting to drain?
Don't know, but they are planning to drill a total of 100 wells so perhaps the 23 wells cover c.20%.

To what extent the initial targetted area is a sweet spot or representative of the rest of the resource?
Again, don't know but I can't see anything in the competent person's report in the AIM admission document or in any subsequent correspondence from the company to suggest that the additional 80 wells will be drilled in any better or any worse area than the first 23.

What percentage recovery of the gas-in-place they're expecting to achieve?
In the AIM admission document, the gas-in-place was 1,385.9bcf of which 816.8bcf (c.59%) was proved, probable or possible. Clearly, the gas-in-place has now increased but I dont think there is an indication yet as to whether Total PPP has increased. In the absence of such info, I would assume the same % applies and Total PPP is some 1.1tcf

[rapier686] 06/6/2007 12:24

1.5mmscf/day doesn't butter that many parsnips if it cost $20m to drill, complete and connect up those 23 wells.

I appreciate right now production is increasing as dewatering progresses and more wells start to produce.

I don't follow GEEC that closely though, do we have any indication from the company what production is to be expected when all 23 are fully on-song? And what proportion of the resources this patch of wells are attempting to drain? And to what extent the initial targetted area is a sweet spot or representative of the rest of the resource? And what percentage recovery of the gas-in-place they're expecting to achieve?

[judge jury] 06/6/2007 10:56

Hadn't spotted this contingent liability before (note 22), although it looks like it's been there for some time and is probably "normal" in terms of doing business in India:

a) Prepayments (Current) include $ 49,630 (31st March, 2006- $ 48,496) recoverable M/s Adkins Services Inc., (Adkins), a drilling contractor which has been fully impaired. The contract with Adkins was terminated by the Company on the ground of non-performance and continued breach of contract. The Company in addition to the above amount has made a claim of $ 4.54 million (31st March, 2006 - $ 4.44 Million) for damages on account of delay in providing the services by the said contractor. The Contractor has also filed a counter claim of $ 6.38 Million (31st March 2006 - $ 6.23 million) against the Company for loss of profit, damages etc which the Company disputes. The contractor has also claimed, interest at the rate of 15% per annum from August 2004 till the date of realization, interim award and costs incurred on litigation. The Company had filed an application before Hon'ble High Court at Calcutta for the appointment of Presiding Arbitrator for the arbitral proceedings to be started. The Hon'ble High Court at Calcutta vide its order dated 18th March, 2004 has appointed the Presiding Arbitrator. Necessary adjustments, if any, will be made in the financial statements once the arbitration proceedings are complete."

[judge jury] 06/6/2007 08:29

The other thing is cash. They obviously need some, hence the discussions re the debt facility. Potential risk of raising new equity though.

[judge jury] 06/6/2007 08:26

Found a problem. Not a major one though I think:

"Unfortunately, the dewatering process has been marginally delayed due to sand problems blocking the dewatering pumps. This, however, is a common problem across the CBM industry and we have made significant progress in rectifying this issue through the employment of a number of proven remedies."