Great Eastern Energy Corporation Limited (LSE: GEEC), the fully integrated, leading Indian Coal Bed Methane ('CBM') Company, is pleased to announce its Preliminary Results for the 12 months ended 31 March 2020.
Reassuringly, average gas Sales prices received held up and remain strong, and gas production increased from an average of 14.13 mmscfd in May 2019 to a full year average of 15.62 mmscfd, including choked production.
Due to COVID-19, there was a national lockdown in India from March 23, 2020 onwards, which is now in the process of being relaxed. Following the year end, COVID-19 had an adverse impact on Sales in April and into May 2020. The Company has taken appropriate measures to optimize costs and increase efficiencies.
Encouragingly, with easing of the lockdown measures and the Indian economy slowly opening up, Sales have already seen an increase in May 2020, and we now expect Sales to be at pre-lockdown levels by July 2020. Helpfully, all customers largely continue to remain with the Company and, over the last two months, we have renewed some contracts at the same selling price as before.
Prashant Modi, Managing Director & CEO of Great Eastern, said: 'Despite the impact of a slowing World economy, the Global COVID-19 pandemic and a slowdown in the growth rate of the Indian economy, Revenue and Sales volume have largely remained resilient. The Board would like to highlight that the Company's business and balance sheet has been able to comfortably withstand the severe impact of these events.
'In response, we have a focused plan of further optimising production, cutting costs, and increasing efficiencies. We will be pursuing further organic growth in the huge market of Kolkata and also to the wider State of West Bengal when the GAIL pipeline is complete, where that will allow us to expand our customer base and Sales volumes. We look forward to progressing our Shale project that represents another excellent organic growth opportunity for Great Eastern once all approvals are in place later this year.
'With the steps being taken by the government to accelerate the growth of the Indian economy, demand for hydrocarbons in India will continue to grow, as is evident from the rising imports.'
Contact:
Tel: +44 (0) 20 3470 0470
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.
GREAT EASTERN ENERGY CORPORATION LIMITED 
