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Great Eastern Energy Corporation to Venture into Shale Gas Exploration

Nov 16

Great Eastern Energy Corporation to Venture into Shale Gas Exploration

Great Eastern Energy Corporation Limited (LSE: GEEC), the fully integrated, leading Indian Coal Bed Methane (“CBM”) Company, today announced an upgrade in its resources at its Raniganj (South) block, which has been provided by the independent reserve engineers, Advance Resources International, Inc. (“ARI”).

The Government of India has permitted exploration and exploitation of all types of hydrocarbons including shale resources under the existing CBM Contracts.

ARI has made the following assessment of the CBM and Shale resources in the Raniganj (South) block:

Classification

Category

SHALE
Resources
(TCF)

CBM
Resources
(TCF)

Total Resources
(TCF)

Original-Gas-In-Place
(“OGIP”)

Low Estimate

1.40

2.62

4.02

Best Estimate

3.51

6.13

High Estimate

6.63

9.25

Classification

Resource Type

Category

Gross Recoverable Gas
(BCF)

Total Future Net Revenues
($ Million)

Undiscounted

Discounted at
10% per annum

Reserves

CBM

1P

336.00

$2,037.00

$675.50

2P

510.80

$3,073.00

$965.90

3P

594.70

$3,535.10

$1,076.70

Contingent Resources

CBM

1C

397.10

$2,463.90

$253.20

2C

600.30

$3,786.80

$385.20

3C

704.40

$4,464.40

$448.70

Prospective Resources

SHALE

1U

347.20

$1,250.10

$764.00

2U

883.00

$3,118.50

$1730.90

3U

1,689.30

$5,775.50

$2,782.90

  • OGIP of 6.13 TCF (best estimate) / 9.25 TCF (high estimate)
  • 3P + 3C + 3U is 2,988.40 BCF (2.99 TCF)
    • Undiscounted value of $13.78 billion
    • Discounted value of $4.31 billion

Prashant Modi, Managing Director & CEO of Great Eastern Energy Corporation, said:

“We are delighted to report this significant uplift in the OGIP for our Raniganj (South) block of up to 9.25 TCF, with an undiscounted value of $13.78 billion and a discounted value of $4.31 billion. We believe that the shale gas resources can be explored and developed cost-effectively in tandem with our successful ongoing CBM development program through the sharing of surface and other infrastructure facilities. We are currently planning the initial exploration program for exploiting shale in our block, and will make a further announcement in due course when we commence the same. This is a fantastic opportunity for us to leap to the next level in the unconventional energy space. We continue to be confident and excited about the future of our Raniganj (South) block.

We commend the Government of India’s continuing transformational policies for the E&P sector; these will go a long way in attracting investments in the sector, thereby boosting India’s energy security and reducing our dependence on imports.”