LONDON, UK, Oct. 31 /CNW/ - Great Eastern Energy Corporation Limited
("Company", "GEECL", 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 that it has entered into a franchise agreement with the
Indian Oil Corporation ("IOC"), a Fortune 500 company and India's largest
downstream operation with the largest number of retail outlets in the country.
Further to the MOU signed earlier this year and announced on 6 June 2007,
Great Eastern has agreed to establish CNG dispensing stations at IOC retail
outlets in the cities located in and around the Company's licence area. It is
expected that when these 5 stations are fully operational they will dispense
approx. 1.5 mmscfd of CNG per day at an average delivered price of over
$15/mcf. The Company expects the number of stations supplied to increase as
production of CBM gas grows.
Commenting, Prashant Modi, President and COO of Great Eastern, said: "We
are delighted to announce this agreement with the Indian Oil Corporation. This
is the first commercial agreement of its type in India and demonstrates the
versatility, credibility and potential of CBM as an alternative fuel source in
India. It also represents a further step forward in the evolution of the
Company from production to end-user distribution."
Notes to Editors:
Great Eastern Energy Corporation Ltd. ("Great Eastern") raised GBP19m in
December 2005 through an admission of Global Depositary Receipts (GDRs) on the
AIM market. The Company has a notional market capitalization of GBP174 million
(US$ 360 million).
Great Eastern holds a licence for the exploration and production of CBM
in the 210 sq km block in the Raniganj Coalfields, West Bengal.
For more information please visit http://www.geecl.com
For further information:
For further information: Great Eastern Energy: YK Modi, Chairman & CEO,
+44(0)20-7743-6663; Prashant Modi, President & COO; Pelham Public Relations,
Philip Dennis, +44(0)20-7743-6663; Hugh Barker, +44(0)20-3008-5009; Arden
Partners, Richard Day, +44(0)20-7398-1632; Tom Fyson, +44(0)20-7398-1637