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Prashant Modi: GEECL, President and COO

09.25.09 (1:27 pm)   [edit]

Prashant Modi, President & COO of GEECL confirms the completion of laying of gas pipeline from Asansole to Durgapur

New Delhi: Great Eastern Energy Corporation Limited (“Great Eastern Energy”), a company involved in the exploration, development and production of coal bed methane in India is pleased to announce that, further to the announcement on August 13, 2009 regarding Pipeline Progress, it has successfully completed laying the entire pipeline on the Asansol-Durgapur sector resulting in a total pipeline of 77.47 km.  The Company is currently in the process of testing the remaining section, comprising 30.39 km, from Raniganj – Durgapur.

The total pipeline of 77.47 km comprises 11.8 km connecting the Gas Gathering Station (GGS) to the Central Gathering Station (CGS); 12.36 km connecting CGS to Kulti, and 53.31 km connecting Asansol (CGS) to Durgapur.
 
The pipeline system, which is capable of carrying up to 35 mmscfd at 15 bar pressure, is part of a vertically integrated network consisting of drilling, production, compression, transportation and distribution services.

Prashant Modi, President and Chief Operating Officer Great Eastern Energy, commented:

“The completion of the laying of the pipeline from Asansol to Durgapur is a significant milestone achieved by the Company and gives access to new market opportunities for Great Eastern Energy.  With the production potential of the license no longer in question the focus of the business has increasingly moved towards sales, marketing, and distribution.”


About Prashant Modi

Mr. Prashant Modi is currently the President & Chief Operating Officer of Great Eastern Energy Corporation Limited (GEECL). He has been associated with the company since its inception. He is responsible for the day-to-day operations of GEECL, and was also instrumental in the successful listing of the company on London’s AIM (Alternative Investment Market) exchange in December, 2005. He’s also on the Environment Task Force committee of the Federation of Indian Chamber of Commerce and Industry (FICCI).

Further information on GEECL can be obtained at www.geecl.com 

Disclaimer

Great Eastern Energy Corporation Limited is proposing, subject to market conditions and other considerations, a public issue of its equity shares and has filed its Draft Red Herring Prospectus (“DRHP”) with the Securities & Exchange Board of India (“SEBI”).

This press release does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any equity shares, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. Any potential investor should note that investment in equity shares involves a high degree of risk. For details, potential investors should refer to the DRHP filed with the SEBI including the section titled “Risk Factors”. The Equity Shares of the Company have not been and will not be registered under the U.S. Securities Act 1933, as amended or any state securities laws in the United States. This announcement may not be released in the United States.

This announcement does not constitute an offer of securities for sale in any jurisdiction, including the United States, and any securities described in this announcement may not be offered or sold in the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act.





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09.10.09 (6:23 pm)   [edit]

Great Eastern Energy Completes Pipeline Project in India

Great Eastern Energy Corporation Limited, a company involved in the exploration, development and production of coal bed methane in India is pleased to announce that, further to the announcement on August 13, 2009 regarding Pipeline Progress, it has successfully completed laying the entire pipeline on the Asansol-Durgapur sector resulting in a total pipeline of 77.47 km. The Company is currently in the process of testing the remaining section, comprising 30.39 km, from Raniganj – Durgapur.

The total pipeline of 77.47 km comprises 11.8 km connecting the Gas Gathering Station (GGS) to the Central Gathering Station (CGS); 12.36 km connecting CGS to Kulti, and 53.31 km connecting Asansol (CGS) to Durgapur.

The pipeline system, which is capable of carrying up to 35 mmscfd at 15 bar pressure, is part of a vertically integrated network consisting of drilling, production, compression, transportation and distribution services.

Prashant Modi , President and Chief Operating Officer Great Eastern Energy, commented:
“The completion of the laying of the pipeline from Asansol to Durgapur is a significant milestone achieved by the Company and gives access to new market opportunities for Great Eastern Energy. With the production potential of the license no longer in question the focus of the business has increasingly moved towards sales, marketing, and distribution.”

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07.21.09 (12:25 pm)   [edit]

Great Eastern Energy commissions 2nd pipeline in W. Bengal

Great Eastern Energy Corporation Limited, a company involved in the exploration, development and production of coal bed methane in India, announced that it has successfully commissioned its second natural gas pipeline extending 12.35 km from its Central Gathering Station in Asansol to Kulti, West Bengal from April 19 onwards. This is the Company's second Coal Bed Methane ("CBM") gas pipeline and will be part of a vertically integrated network consisting of drilling, production, compression transportation and distribution services.

This 12" steel pipeline is capable of carrying one (1) mmscmd of gas at 15 bar and will be catering to the requirements of customers in the Burnpur, Asansol, Neamatpur, and Kulti area.

Prashant Modi , President and Chief Operating Officer, Great Eastern Energy Corporation Limited , commented: "Great Eastern Energy is delighted to commission its second trunk pipeline connecting its Central Gathering Station to Kulti, thus achieving another milestone in the construction of its pipelines and midstream infrastructure."

As of January 27, 2009, the Company had laid 31.97 km of the MDPE pipeline within its license area, connecting 22 wells to the Gas Gathering station. A contract for connecting the other wells has been finalized and work is expected to start within the next three weeks.

The Company has also laid 24.27 km of the steel pipeline, as on April 15, 2009, which connects the Central Gathering Station in Asansol to Durgapur through the towns of Nigha and Raniganj. The pipeline upto Nigha is nearing completion and partial testing of the same has commenced.

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02.02.09 (4:25 pm)   [edit]

Great Eastern Energy flags off coal bed methane pipeline

BS reported that Great Eastern Energy Corporation Limited has commissioned the country's first natural gas pipeline based on coal bed methane in the state and quoted it was planning to increase the network of CBM gas pipelines across the industrial belt in the eastern region to get industrial and domestic users.

As per report, GEECL recently filed its Draft Red Herring Prospectus with the Securities & Exchange Board of India in December 2008 to raise around INR 800 crore but was yet to decide on the date.

The 11.8 kilometer CBM gas pipeline today connected its gas generation centre located at Shymadih to its central gas gathering station at Asansol in the Asansol Durgapur Development Authority industrial area, 210 kilometer west of Kolkata.

However, GEECL was drawing CBM from 23 wells linked to coal beds.

Mr Prashant Modi president & COO of GEECL said that it aimed to tap 100 wells in another 2 years and 300 to 400 wells in 3 years time.

According to a ball park estimate, 100 wells could produce 35 million cubic feet of methane gas per day.

It said that it had invested close to INR 350 crore till date in the first phase of the project. Mr Modi said that “We will extend this CBM network and supply the industrial belt of Durgapur, Burnpur and Asansol and sell to domestic users.”

The report added that GEECL would extend the CBM pipeline to Kulti and then tap the large commercial domestic market in Kolkata. The 12 kilometer stretch of the CBM pipeline, from Asansol to Kulti was 99% complete and would become operational in a month, while the third network link from Asansol to Durgapur would be operational in 6 months.

The present commissioned pipeline was part of a vertically integrated network consisting of drilling, production, compression, transportation and distribution services will be catering to the requirements of customers in Burnpur and Asansol area initially.

The report further added that GEECL had a franchisee agreement with Indian Oil Corporation for distribution of gas through four co-branded stations for now. It was in talks with IISCO and Kulti units of SAIL for supply. This pipeline was capable of carrying 1 million metric standard cubic meter per day of gas at 15 bar. It was today operating 31.97 kilometer of the pipeline linking 22 wells to the gas gathering station. It recently received the right of use from National Highways Authority of India for laying the 57 kilometer pipeline from Asansol to Durgapur.
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01.29.09 (11:24 am)   [edit]

GEECL's First Natural Gas Pipeline commissioned in West Bengal

Jan 28, 2009 – Great Eastern Energy Corporation Limited (GEECL) has successfully commissioned its first natural gas pipeline extending 11.8 km from its Gas Gathering Station to its Central Gathering Station in Asansol, West Bengal. It is slated to be its first CBM ( Coal Bed Methane) gas pipeline and will be part of a vertically integrated network consisting of drilling, production, compression transportation and distribution services.

This 12” pipeline is capable of carrying one (1) mmscmd of gas at 15 bar and will be catering to the requirements of customers in Burnpur and Asansol area. Further, this Trunk pipeline can feed other pipelines connecting Kulti towards the west and Durgapur in the east.

On this historic event, Prashant Modi, President and Chief Operating Officer, Great Eastern Energy, commented:

“Great Eastern Energy is delighted to commission its first trunk pipeline connecting its Gas Gathering Station to its Central Gathering Station, thus achieving a milestone in the construction of its pipelines”.

GEECL is a natural gas company focusing on the exploration, development, production, distribution and sale of natural gas from coal-seams commonly known as CBM. On the pipeline front, the Company observed that as on January 27, 2009 they have laid 31.97 km of the MDPE pipeline which connects 22 wells to the Gas Gathering station. It had also laid 11.82 km of the steel pipeline as on January 27, 2009, which connects the Central Gathering Station to Kulti, and is nearing completion. The Company has received the Rights of use (ROU) from National Highways Authority of India for laying the pipeline from Asansol to Durgapur, a stretch of 57 kms, and has started laying the pipeline on that route.

To know more about GEECL click Great Eastern Energy Corporation Limited .

To know more of about GEECL's President and COO click Prashant Modi .
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10.27.08 (12:30 pm)   [edit]

New CNG station opens in Asansol, long wait for Kolkata

Kolkata, October 24: The Great Eastern Energy Corporation Limited (GEECL), the first commercial producer of coal bed methane (CBM) in India, has opened its seventh CBM-based compressed natural gas (CNG) station at Neamatpur in Asansol on Friday.

The company has already signed a franchisee agreement for supply and retail of CNG through Indian Oil Corporation’s (IOC) petrol pumps in Asansol, Durgapur, Raniganj and other cities across the state. Overall there are seven CNG stations in the area, of which, four are the “mother stations” and three are the “daughter stations”.

Coal bed methane is considered to be of better quality than the CNG available in the market. It has 96 per cent methane, contains no sulphur and has very little carbon dioxide, while the natural gas contains about seven per cent carbon dioxide.

While automobile users will have access to clean fuel in the region, for users in Kolkata, there seems to be a long wait ahead. The company has spoken to the state government about extending CNG supply to Kolkata, which will be implemented gradually. It estimates a CNG demand exceeding 40 to 50 million cubic feet per day in Kolkata alone.

“We have begun with Asansol and Raniganj. Later, we will gradually extend it to Durgapur, Burdwan and Dankuni. It will take at least six months to extend the supply to Durgapur. Kolkata might take longer and as of now, opening a supply station in the immediate future is ruled out,” said Prashant Modi , president and chief operating officer of GEECL . Given the huge market for CNG in Kolkata, it is difficult to match supply with demand. Moreover, supply to Kolkata requires pipelines to be laid which could take some time. “Supply by truck-mounted cascades is not feasible for Kolkata, as trucks are not allowed into the city. Pipelines are the only option,” added Modi.

State Transport minister Subhas Chakraborty on Thursday had said that all autorickshaws, running on petrol or diesel, will be off the roads after December 31. Only autos fuelled by LPG will be allowed in Kolkata and other parts of the state.

 

Src: ExpressIndia - Express News Service

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10.13.08 (1:03 pm)   [edit]

Great Eastern Energy wins gas supply contract with Sail Growth Works

LONDON (Thomson Financial) - Great Eastern Energy Corp. Ltd. , said it has won a gas supply contract with SAIL Growth Works (part of Steel Authority of India Ltd.) for initial supply of 233 thousand cubic feet per day (MCFD) of gas, at a delivered price of $17.46 per million British thermal units(mmbtu).

The company involved in the exploration, development and production of coal bed methane in India, said the amount of gas supplied to SAIL Works is expected to increase significantly as gas production increases and the steel pipeline for the supply of the gas has been successfully laid.

In addition, Great Eastern has received confirmations from Kedia Group of Industries for the purchase of 1,801 MCFD of gas at a delivered price of $17.32 per mmbtu for an initial three year period and $17.49 per mmbtu for a further two years.

This will be the base price and the price will be revised again after 5 years, while the tenure of the contracts will be for 20 years, the company said.

Carbon credits arising from the contracts with Kedia Group will be available to Great Eastern and supplies of gas are expected to begin next year.

The company has also successfully renewed gas sales agreements for another year with those customers whose initial terms of agreement have expired. And the second drilling programme of 30 wells, as outlined at the time of the results in June, is also making good progress, with 9 wells drilled and a further 10th well currently being drilled.

TFN.newsdesk@thomson.com

To know about Mr Prashant Modi, the President and COO of GEECL. Visit the official website at www.prashantmodi.com.

09.23.08 (6:34 pm)   [edit]

CNG Bengal debut in coal belt

CNG-powered vehicles have arrived in Bengal, though in a small way.

Seven autorickshaws that will run on compressed natural gas (CNG) have been registered in Asansol.

The number will go up to 800 in the next few months, Burdwan district magistrate Manish Jain said.

“We are going to ban petrol-run autos in Asansol and Durgapur from December 1. Earlier, CNG was not available in Bengal but Great Eastern Energy Corporation is now producing it from methane gas in the coal belt and so we took the decision,” he added.

The district administration will not renew licences of petrol autos after December 1. Owners will either have to convert or buy new vehicles.

The seven that obtained registration yesterday are new autos.

Great Eastern, the first company to produce coal-based methane in India, signed an agreement with Indian Oil Corporation (IOC) last year to supply and sell CNG through its outlets in the region.

CNG is now available at two IOC pumps in Asansol and Barakar. Great Eastern also has its own outlet in Barakar. Several outlets are set to come up in Durgapur, Ranigunj, Panagarh and Asansol in the next three months.

Initially, CNG autos will be introduced only in the coal belt because of the availability of CNG.

“Once it is available in other parts of the state, we will urge owners of all petrol- run autos to convert or get a new one. The environment department will provide Rs 10,000 as subsidy for buying a new auto after disposing of an old one,” said Arifuddin Khan, the assistant regional transport officer.

In July, Calcutta High Court had said all autorickshaws, irrespective of their age, would have to convert to CNG or LPG to ply within the Calcutta Metropolitan Area.

The price of a new CNG auto in Bengal is Rs 1.28 lakh. It takes Rs 30,000-35,000 to convert a petrol-run auto into CNG.

Besides being environment friendly, CNG is much cheaper than petrol. An auto runs as much on a kilo of CNG as on 1.45 litres of petrol.

In Asansol, CNG sells at Rs 30 a kilo.

“It will be an automatic choice for public vehicles once it is available across the state as it is cheaper and eco-friendly,” said an official of Great Eastern, which has been exploring methane — a key ingredient of CNG — in the coal mines.

The auto owners’ Citu union supports the conversion drive. Convener Hemanta Sarkar said: “The use of adulterated petrol by a section of drivers has taken pollution to a dangerous level. We welcome the move and request the administration to ensure that au- tos registered in Jharkhand and Bihar do not ply here.”

The sale of CNG autos in the region has been picking up. Prashant Jaiswal, the only dealer for CNG autos here, said 30 have been sold and another 42 booked.

To know about Mr Prashant Modi, the President and COO of GEECL. Visit the official website at www.prashantmodi.com.

09.08.08 (10:43 am)   [edit]

Great Eastern Energy plans 'sponsored' issue

A first for Indian markets, AIM-listed firm looks for liquidity.

Delhi-based Great Eastern Energy Corporation (GEEC) is planning a public issue, part of which will be “sponsored”, meaning foreign shareholders will also tender their shares for sale, a first for the Indian markets.

GEEC, a coal bed methane exploration and development company promoted by Yogendra Kumar Modi, is listed on the London Stock Exchange’s Alternative Investment Market (AIM).

The issue, which is awaiting approval from the Securities and Exchange Board of India (Sebi), is unique in that such sponsored issues by Indian companies (like Infosys) have so far been restricted to overseas share sales by Indian companies.

Investment banking sources said GEEC plans to mop up around Rs 1,000 crore, half of which will accrue to the company and the rest to shareholders.

Notices sent to the holders of GEEC’s Global Depository Receipts (GDRs) said the company is planning a public offer of 92.6 million shares, comprising a fresh issue of 46.6 million shares and roughly an equal number offered by shareholders.

Depending on the response, the company has an enabling provision for a “greenshoe option”, meaning the company can keep oversubscriptions to the extent of 15 per cent of the issue size.

The company has appointed ABN Amro, Enam Securities and DSP Merrill Lynch as lead managers for the IPO.

The company has a paid up capital of Rs 54.46 crore, comprising Re 1 each, which will increase to a little over Rs 59 crore.

GEEC was listed on AIM in 2005 and some of the major shareholders include UK-based finance conglomerates AEGON and Fidelity. The promoters hold around 66 per cent, of which nearly 32 per cent is in the form of GDRs.

The notice to GDR-holders explains that the listing on the Indian markets is driven by the need for liquidity given that low trading levels on AIM make it difficult for investors to enter or exit the company.

The Indian listing is also necessary because under Sebi norms, a company registered in India but listed overseas cannot opt for a follow-on issue overseas or a private placement without listing on the Indian bourses first.

The only two other companies that fall in this category are Rediff.com and Satyam Infoway, both of which are registered in India but listed on Nasdaq.

Meanwhile, bankers are in talks with Sebi over the sponsored portion of the issue. “There are some issues in term of disclosing the name of the public shareholder at the time of filing the draft red herring prospectus,” sources said.

GEEC has a licence for an over 210 sq km coal bed methane block in the Raniganj coal field in West Bengal where it has started production.

About GEECL:

Great Eastern Energy Corporation Ltd. (GEECL), a part of the YKM Holdings Group, is the first Private Sector Company in India to explore, develop, distribute and market Coal Bed Methane. In December 2005, GEECL became the first Indian Company to be listed on the London Stock Exchange's Alternative Investment Market (AIM). The notional market capitalisation of the Company as of July 13, 2007 was GBP 172 million / US$ 350 million.

The organization, headed by Mr. Y.K. Modi, is exploring & developing production wells for Coal Bed Methane in Raniganj coalfields, West Bengal. GEECL has completed 23 vertical production wells. All the wells are drilled, logged, cased, cemented and fractured. Apart from this 8 Core hole have drilled for desorption and other studies. Learn more about GEECL on http://www.geecl.com

Prashant Modi - President & COO

Mr. Prashant joined the YK Modi Group in 1996 and was involved with the restructuring of a group company operating a significant tea estate business and its subsequent sale to Unilever. Prior to this he held positions at Qualcomm. Inc. in San Diego, USA and ANZ Investment Bank in London. He holds a degree from Boston University in Bachelor of Science in Business Administration. His concentration was in finance with a minor in economics. He has also completed an executive education program at Harvard Business School. He is responsible for the day to day affairs of the Great Eastern Energy Corporation Limited. Read more about Prashant Modi on http://www.prashantmodi.com

08.25.08 (4:52 pm)   [edit]

GEEC to fund well expansion through IPO

Great Eastern Energy Corporation , a producer of coal bed methane in India, is planning an initial public offering in the subcontinent, which has the fourth largest proved reserves of coal in the world.

GEEC, which is listed on London’s Aim, has a market capitalisation of £296.8m ($554m). It said on Monday it planned to offer 92.7m shares in the Indian IPO to raise funds to accelerate the next phase of its drilling and well development, and acquisition of further acreages in coal bed methane as global demand for alternatives to oil was surging.

To know about Mr Prashant Modi, the President and COO of GEECL. Visit the official website at www.prashantmodi.com.

07.24.08 (3:37 pm)   [edit]

India proclaims first coalbed methane sale

HOUSTON, July 16 -- London concern Great Eastern Energy Corp. said it has made India's first sale of coalbed methane as compressed natural gas for vehicles in Asansol, West Bengal, 125 miles northwest of Calcutta.

The company said it is receiving $13-15/Mcf for the gas.

Great Eastern has drilled 23 production wells and plans to drill 80 more in phases over 3 years. It holds a CBM license on 210 sq km in the Raniganj coal field in West Bengal, where consulting engineers estimated original gas in place at 1.92 tcf (see map, OGJ, Dec. 13, 2004, p. 35).

To know about Mr Prashant Modi, the President and COO of GEECL. Visit the official website at www.prashantmodi.com .

07.16.08 (5:17 pm)   [edit]

Great Eastern Energy Corporation Ltd.

LONDON, July 16 /PRNewswire/ -- 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."

About GEECL:

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 GBP172 million.

Great Eastern holds a licence to explore for CBM in the 210 sq km block in the Raniganj Coalfields, West Bengal. In a report dated June 1, 2007, Netherland, Sewell and Associates, Inc. (NSAI) put the Original Gas-in-Place (OGIP) at 1.92 TCF, which is an increase of 38.5% from the previous report used at the time of the floatation of the Company in December 2005. The NSAI report was prepared in accordance with 2000 petroleum resources definitions approved by the Society of Petroleum Engineers (SPE), World Petroleum Council (WPC), and American Association of Petroleum Geologists (AAPG). In accordance with the standards, the OGIP will move into reserves after entering into commercial off-take contracts and providing established production profiles.

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. 

    
    For further information:

    Great Eastern Energy
    YK Modi Chairman & CEO
    Prashant Modi
    President & COO
    +44-(0)20-3008-5509

    Pelham Public Relations
    Philip Dennis                           
    Hugh Barker
    +44-(0)20-3008-5509

    Arden Partners
    Richard Day                              
    Steve Pearce
    +44-(0)20-7398-1632
07.09.08 (11:28 am)   [edit]

CBM Coal Bed Methane Conference: 28 - 30 July 2008 Singapore

The CBM Coal Bed Methane Conference is scheduled to be held at the InterContinental Singapore from 28 - 30 July 08. 

Overview of the Conference

Keynote Address:
Dr.-Ing. Evita H. Legowo, Assistant to Minister of Energy & Mineral Resources, Department of Energy & Mineral Resources, Indonesia

Featuring Global Case Studies and Key Insights from:
- Nick Davies, CEO, Arrow Energy
- Randeep Grewal, CEO, Green Dragon Gas
- Nathan Mitchell, CEO, Mitchell Drilling Corporation
- David Casey, COO, Eastern Star Gas
- Frank C. Ingriselli, President & CEO, Pacific Asia Petroleum
- Prashant Modi, President & COO, Great Eastern Energy Corporation Limited
- Ian Gorman, Director & COO, Molopo Australia Limited
- David Johnson, Managing Director, Metgasco
- Ian Wang, Managing Director, Clarke Energy China

Conference Highlights
- Asia CBM outlook, demand & Arrow Energy’s presence in Asia
- Policies impacting CBM development in Indonesia & China
- CBM – CMM project financing, investing & carbon credit trading
- Key geological considerations for CBM site selection & exploration
- CBM production & operational obstacles & solutions
- Integrating downstream facilities to bring CBM natural gas to market
- Key learnings from leading US & Australian CBM companies

Pre-Conference Masterclass • 28 July 2008
Appraising & Developing Reservoirs for Maximum CBM Recovery
Conducted by: American Association of Petroleum Geologists

Download Brochure Link 

07.02.08 (1:06 pm)   [edit]

India-centric firms` m-cap soars on AIM

Amidst the continuing turmoil in the global capital markets, India-focused companies on the Alternative Investment Market (AIM) of the London Stock Exchange have registered a nearly 5 per cent jump in market capitalization, crossing $6 billion last month. The market capitalization of 23 India focused firms listed on AIM stood at $6.64 billion as on May 31, an increase of 4.89 per cent over the previous month.

According to data compiled by global consultancy firm Grant Thornton, the average rise in market capitalization of these stocks from their respective dates of admission till May 31, 2008 touched over 60 per cent.

"The average increase in market capitalization of these stocks from their respective dates of admission to the end of May 2008 has been 66 per cent, compared to 52 per cent to the end of April 2008, indicating that India focused stocks on AIM have exhibited positive growth in the month of May, even in the wake of volatile markets globally," Grant Thornton said.

Out of the total 23 India-focused companies, Mortice and OPG Power Ventur Plc were admitted to AIM in May 2008. OPG raised about 65 million pounds last month.

In terms of percentage gains in market capitalization, Great Eastern Energy Corporation topped the list with an increase of 853 per cent over market capitalization at admission. This amounted to a Compounded Annual Growth Rate (CAGR) of 150 per cent.

Great Eastern Energy was followed by KSK Power Venture Plc, with a gain of 493 per cent, and Eros International Plc (90 per cent) in terms of their respective market caps at admission. KSK Power Venture and Eros International had a CAGR of 208 per cent and 40 per cent respectively.

However, Indian Film Company saw a sharp fall in market capitalization, trading 28.49 per cent lower than its admission market capitalization.

To know more about Great Eastern Energy Corporation Limited, contact Mr. Prashant Modi at www.prashantmodi.com . He is the President and COO of GEECL.

06.20.08 (4:50 pm)   [edit]

'Laws are keeping pace with emerging market needs'

The Great Eastern Energy Corporation Limited (GEECL) is planning to extend its operations and supply compressed natural gas (CNG) to Kolkata. The country’s first commercial producer of coal-bed methane (CBM) is already selling CNG from the Indian Oil Corporation’s stations in places like Asansol, Durgapur and Raniganj. A part of the YKM Holdings Group, GEECL is developing production wells for CBM in Damodar Valley (Raniganj coal-field), near the city of Asansol, West Bengal. Thirty wells have been drilled so far. The company’s licence area covers 210 sq km. (52,500 acres). The first phase will see drilling and completion of 100 production wells. The company is planning to drill a total of 200 wells in a phased manner. GEECL president and chief operating officer Prashant Modi talks to Financial Express’ about the company’s progress and plans. Excerpts:

 

How is GEECL progressing?

 

We have already drilled about 30 wells. We are on our 31st well in India.

 

What is the overall plan?

 

We’ll drill 80 wells in the coming two years. In the next six years we will do another 200. The plan is to dig 40-50 wells a year after that. The total number of wells is expected to be around 300. As you keep drilling more and more, 300 can become 330 or 270. It’s important to see if the well is economical to drill.

 

What is the total production capacity in the first phase?

 

The first stage will cover 100 wells and generate 35-40 million cubic feet of gas per day. Eventually it will be 100 million cubic feet when all the 300 wells are operational. I am talking about average production. In CBM, the production increases for the first three/four years, then it stabilises. So, it is like a camel hump.

 

What is the total investment?

 

The total investment will be close to $1 billion over the next five years. After that the company will start generating cash. The investment is divided in three parts— upstream, midstream and downstream. Now, we are doing everything ourselves. Earlier we were thinking about having subsidiaries, but then it doesn’t make sense. This has become a one-stop shop sort of business.

 

How are you raising money?

 

We have just raised loans of Rs 350 crore from SBI and nine other banks. After that the company will generate enough cash to fund itself. As far we are concerned we are fully funded now. If we acquire..
06.16.08 (11:38 am)   [edit]

India gets its first CBM based CNG station

ASANSOL, JUL 15 : India got its first coal bed methane (CBM) based compressed natural gas (CNG) station on Saturday with Great Eastern Energy Corp Ltd (GEECL) starting commercial production of CBM, 14 years after it started exploration in the Raniganj block.

GEECL had entered into a license agreement with Coal India Ltd in 1993 for exploration and development of CBM over 210 sq km in the Raniganj coal fields. After the CBM administration was transferred to the ministry of petroleum & natural gas from the ministry of coal in 2001, GEECL had got into a productionsharing contract with the ministry of petroleum & natural gas.

Chairman YK Modi said GEECL in its first phase of work has so far made 23 vertical production wells, which will produce 7,60,000 cubic feet of gas per day. This will go up 35 million cubic feet per day once GEECL completes drilling 100 wells in the next three years.

The company will drill 200 more wells in the second phase, which is expected to be completed by 2014-15.

Modi said a total of Rs 3000 crore investment will be made to complete the two phases. GEECL has so far invested Rs 175 crore. This will reach Rs 800 crore by 2009 with the completion of the first phase.

For sales and distribution of CBM as piped natural gas, the company has already signed a memorandum of understanding with Indian Oil Corp Ltd and is trying to rope in GAIL (India) Ltd as well.

Modi said gas will be supplied at Rs 30 per kg in and around the Asansol area as it has a number of steel & sponge iron plants, ceramic industries, alloy steel plants, bakeries, glass factories and chemical industries.

The company is also looking into supplying CBM-based CNG to vehicles plying in the region. For using gas, all the plants and vehicles will have to install the CNG version. Although it will require a formidable investment, it will save at least 40% of production cost.

While the investment for plants and factories will depend on their size and amount of fuel consumption, for a petrol car it will cost Rs 30,000, and Rs 22,000 for an auto rickshaw to add the CNG version, Modi said.

He said GEECL got the distribution license from the West Bengal government on Friday and has decided to set up six CBM-based CNG retail outlets between Durgapur and Barakar within the next 3-4 months, costing Rs 2 crore each.

Of the six, one station will be the gathering point of gas from all the wells. The rest five will be supplied gas in cascades.

The company will have to make a 120-km internal pipeline network for linking the 100 wells, and a 80- km external pipeline initially for taking it up to the city, which will cost around Rs 200 crore. The pipeline network will be extended to industries according to the demand, Modi said.

West Bengal industry minister Nirupam Sen, who inaugurated the company's station, said GEECL can opt for DPL's pipeline, which is not being used.

To know about Mr Prashant Modi, the President and COO of GEECL. Visit the official website at www.prashantmodi.com .

06.09.08 (2:26 pm)   [edit]

Great Eastern Energy begins CBM production

Asansol, July 16 Great Eastern Energy Corporation Ltd (GEECL) plans to raise Rs 300-350 crore ($83-88 million) loan finance from domestic and foreign sources to complete the first phase of development of Ranigunj CBM block.

The company - listed in the AIM segment of the London Stock Exchange - has earned the reputation of pioneering the commercial production of coal bed methane (CBM) in India from its Ranigunj block in West Bengal.

“We have already invested approximately Rs 175 crore through equity in drilling 23 production wells. Current production is roughly 760 thousand cubic feet a day. We are expecting the production to touch 1.5 million cubic feet a day (mcfd) shortly,” company Chairman, Mr Y.K. Modi, told newspersons here. “We are now planning to raise Rs 300-350 crore from the debt market in India and overseas for completing the first phase development comprising a total of 100 production wells with an estimated production of 35 mcfd within next two years. The total investment is expected to be Rs 575 crore,” he said. The company has already appointed lead managers for loan syndication services.

So far a debt free company, GEECL has an equity of Rs 203 crore including $19 million raised through GDR in the AIM segment. The company has a notional market capitalisation of £176 million.

The 210-square km nomination block is located adjacent to Asansol industrial city offering the company ample opportunity to sell CBM locally. To begin with, GEECL will enter into two firm supply agreements with a local ceramic manufacturer and bakery for replacing liquid fuel with CBM next week.

The company has also commenced CNG supplies (with 96 per cent methane content) through six stations in and around Asansol. CNG is priced at Rs 30 a kg.

A joint venture proposal is currently being worked out with IndianOil for transfer of the piped city gas distribution business including the distribution pipelines.

To know about Mr Prashant Modi, the President and COO of GEECL. Visit the official website of Prashant Modi. 

06.02.08 (11:34 am)   [edit]

India-focused cos cross $6 b market cap on AIM

NEW DELHI: India-focused companies on the London Stock Exchange's Alternative Investment Market (AIM) crossed $6 billion in market capitalisation with the stocks registering an average growth of 52 per cent in valuation till April.

The market capitalisation of a total of 23 India-focused firms listed on AIM touched $6.33 billion from their respective dates of admission to the end of April, says a report from global consultancy Grant Thornton.

Further, the average increase in market capitalisation of these companies stood at 52 per cent during the same period. In terms of percentage gains, Great Eastern Energy Corporation topped the list with a premium of nearly 600 per cent on its market cap italisation on admission.

The jump translates into 126 per cent growth on Compounded Annual Growth Rate (CAGR) basis, the report said. The firm, listed in December 2005, had raised capital worth about £19 million.

However, majority of the companies had witnessed substantial decline in their respective market capitalisation.

While nine India-focused companies saw their market capitalisation rise till April 14 firms recorded decreased valuation during the same period.

Companies such as UMP Plc, Hirco Plc, Indian Film Company (The) Ltd, Dev Property Development Plc and CBay Systems Holdings Ltd saw substantial decline in their respective valuations. - PTI

To know about Mr Prashant Modi, the President and COO of GEECL. Visit the official website  of Prashant Modi .

05.26.08 (2:31 pm)   [edit]

Kolkata all set to get CNG supply

With the Great Eastern Energy Corporation Limited (GEECL) planning to extend its operations, Kolkata looks all set to get compressed natural gas (CNG) supply.

The GEECL, the first commercial producer of coal bed methane in India, already retails CNG from the Indian Oil Corporation’s outlets in Asansol, Durgapur, Ranigunge and other cities. Coal bed methane is considered to be of better quality than the CNG available in the market. It has 96 per cent methane, contains no sulphur and has very little carbon dioxide, while the natural gas contains about 7 per cent carbon dioxide.

“The network will expand to other areas of West Bengal, including Kolkata, in due course,” GEECL president and chief operating officer Prashant Modi said in an email to The Indian Express.

The company has already spoken to the state government about extending CNG supply to Kolkata. “The response from the state government has been very positive,” said Modi. While no specific time frame has been set till now, a feasibility study is being conducted to see the costs involved and other modalities are being finalised, he added.

The company estimates a CNG demand exceeding 35 million cubic feet in Kolkata alone. Initially, the supply will begin with truck-mounted cascades. It may lay a pipeline, if needed, to Kolkata to cater to the demand.

The GEECL’s licence area covers 210 square kilometres and as per its market survey, it has found that the demand in the area is around 150 to 200 million metric standard cubic feet per day, which is more than double of the company’s peak expected production level. A UK-listed company, GEECL has already completed 23 vertical production wells. In January, GEECL has commissioned its new rig, Atlas Copco RD 20 III. It plans to invest approximately Rs 4,000 crore in upstream, midstream, and downstream activities in the state.

Src: expressindia.com

05.22.08 (10:00 am)   [edit]

Goldman forecasts $141 oil this year; others say $200 oil possible

Saudi Arabia, the world's largest oil exporter, will increase production 300,000 barrels a day next month after customers requested more oil. According to OPEC, however, that won't subdue prices being driven ever-higher by a weak US dollar.

Crude oil for June delivery rose as much as $1.48 a barrel, or 1.2%, to $127.77 a barrel on the New York Mercantile Exchange. It traded at $126.89 at 1:51 p.m. in London. The contract gained $2.17, or 1.7%, to $126.29 on May 16, the highest close since futures trading began in 1983.

Despite demand not having the most forceful impact on prices, it is predicted to contribute going forward.

One such instance comes from recovery efforts in the wake of the May 12 earthquake in China's Sichuan province. Demand for petroleum fuels for construction and transportation could raise the International Energy Agency's estimate that the country's oil demand growth from 2007 to 2008 would be roughly 350,000 b/d on a base of 7.54 million b/d.

The southwest Sichuan province is China's main gas producer and consumer, accounting for a quarter of China's total gas production. PetroChina, the primary operator, said it has restored a third of the daily output of 6 million cu m of gas that was shut in after the quake.

Sinopec's giant Chuanxi gas field in the Sichuan province was reported running at 20% of capacity after many chemical plants closed, up from only 10% earlier when 1,000 gas wells were shut in. As of May 15, the field was reported to be producing 1.6 million cu m/day.

For the short term, Goldman Sachs predicts an average oil price forecast for the second half of 2008 of $141 a barrel citing global GDP growth outstripping production increases, leading to higher long-dated future contracts.

Long term predictions by Goldman Sachs put crude prices escalating to $150-200/bbl within two years. While these prices just six months ago may have seemed absurd, keep in mind that the investment bank was one of the first to predict $100 a barrel oil prices back in 2005.

Iran's Oil Minister Gholamhossein Nozari also believes $200 per barrel crude is possible if existing conditions in the market continued.

Nozari blames the weak US dollar and supply concerns from Nigeria, not supply and demand for oil's record high prices.

OPEC oil supply fell in April to 31.64 MMboe/d, its lowest this year, as a strike cut Nigerian output and top OPEC exporters Saudi Arabia and Iran trimmed production, a Reuters report recently showed.

Despite these forecasts, there are some industry executives who believe oil will fall below the $100 per barrel mark.

A survey conducted by KPMG LLP's Global Energy Institute revealed that many execs believe the price will drop significantly from the current high level by the end of the year.

The survey polled 372 financial executives from oil and gas companies in April 2008. Fifty-five percent of the respondents think that the price-per-barrel of crude oil will drop below $100 by the end of the year.

Twenty-one percent think that the price will close between $101 and $110; 15% think between $111 and $120; and 9% believe it will close at above $120. And, while 44% felt that prices would peak by the end of the year, a further 39% thought that they would not peak until after 2010.

Despite the fact that the majority of executives questioned expect the price of oil to fall below $100 a barrel, 44% plan to increase their upstream capital spending by more than 10% over the next year, an increase of 9% over last year. Twenty-six percent say that investment will increase by up to 10%. Only 5% anticipate a decrease in investment in the coming year.

In addition to increased investment domestically, given the state of the US economy, 46% expect that there will be more foreign investment in/acquisition of US energy companies in the coming year and 18% expect that it will increase significantly. Only 5% expect a drop.

When asked what would most enhance US energy security, respondents overwhelmingly felt that opening up drilling domestically is the best option. More specifically, 43% said that the Arctic National Wildlife Reserve should be opened for drilling and 28% cited opening up drilling in the Rocky Mountain region. A further 28% said that investment in renewable energy will enhance US energy security the most.

However, despite many oil and gas executives feeling that there should be more investment in renewable energy sources they still do not see it is a serious near-term solution in the energy supply equation.

Almost all of the respondents stated that they expect natural gas to become a larger contributor to global energy supply.

Fifty-four percent of respondents said that natural gas will grow significantly as a percentage of total energy supply and 37% said it will grow somewhat.

CRUDE OIL FACTS:
•Since 1998, crude oil prices have skyrocketed from $9.16/bbl to about $124/bbl today – that's an increase of more than 1,300%.
•Oil production in the US peaked about 1971.
•The US imports about 70% of its oil needs.
•The leading oil exporting countries are (in order): Saudi Arabia, Russia, Norway, Iran, and the United Arab Emirates.
•Saudi Arabia has said it will not increase production beyond investments already in place.
•2008 Russian oil production is forecasted to be below 2007 levels.
•These exporting countries are currently experiencing rapid growth and are consuming more oil domestically. Because of this growth, some industry experts predict these five countries will have zero oil to export by about 2030.
•In 2003, the Energy Information Administration predicted crude oil prices would hit a high of $24.68/bbl by 2020. They were a little off the mark.

To know about Great Eastern Energy Corporation, visit GEECL company website.

To know about Mr Prashant Modi, the President and COO of GEECL. Visit the official website of Prashant Modi . 

05.20.08 (11:01 am)   [edit]

GEECL in talks with Durgapur Projects for gas pipeline revival

Kolkata, July 29 Great Eastern Energy Corporation Ltd (GEECL) has started negotiations with Durgapur Projects Ltd (DPL) for revival of an abandoned gas pipeline from Durgapur to Kolkata.

The pipeline, if revived, would help GEECL supply coal-bed methane (CBM) in and around Kolkata.

Unused asset

The 200-km pipeline was created by DPL – a State undertaking – for transporting coal-gas and has not been in use for almost two decades.

GEECL has begun commercial production of coal-bed methane at Ranigunj block some 50 km from Durgapur.

This is also the first time natural gas or its derivatives are available in West Bengal and the entire Eastern region.

“We have initiated discussions with DPL and may soon launch a study to asses the current status of the pipeline,” the GEECL Chairman Mr Y.K. Modi, told Business Line.

Consultancy

Metallurgical and Engineering Consultants (India) Ltd (MECON), which is currently studying the marketing prospects of CBM in the nearby towns and industrial areas on behalf of GEECL, may be entrusted with the job of assessing the status of the trunk pipeline.

Govt support

The proposal has received support of the State Government, which is eager to introduce CNG supply in Kolkata to curb vehicular pollution in the city.

According to the company, since the pipeline was created to transport coal gas – which is more inflammable due to high content of impurities and corrosion agents like coal tar and sulphur – it may be suited for transportation of CBM, which has lower impurity content and is less flammable.

GEECL currently produces close to one million cubic ft of gas a day (mmcfd) from 23 wells.

The production is expected to go up to two million standard cubic metres a day (70 mmscmd) from 100 wells at the end of the first phase of development in two years.

The production is expected to go up to six mmscmd after completion of the second phase, from a total of 300 wells.

To know about Mr Prashant Modi, the President and COO of GEECL. Visit the official website of Prashant Modi.

05.14.08 (5:28 pm)   [edit]

Arden Partners hails Eastern promise

Great Eastern Energy fanned the flames of investor enthusiasm for coal-bed methane when its house broker set a 500p price target on the back of the India-focused company’s recent drilling success and dramatically increased estimates of its reserves.

Arden Partners could barely conceal its joy. “A sales agreement with one of the major steel plants in the [Indian] region, perhaps by mid-year, will demonstrate pricing, demand and deliverability,” it predicted. Shares in Great Eastern leapt 27½p to 222½p.

The rush of investor support in the sector began when BG Group launched a bid for Origin, the Australian producer, which supplies China with the gas extracted from coal seams in Queensland.

Shares in Island Oil and Gas, the explorer whose shares have been hammered by debt and lack of producing assets, rose 9p to 30p after it sold its Amstel oilfield off the Netherlands, for $25 million (£12.76 million) in cash and a $10 million loan, a big profit on its $800,000 investment. It will use the money to repay an earlier loan. Davy, the house broker, values the group at above 80p per share.

MDM Engineering, which builds processing plants for mid-sized miners in Africa, rose 4½p from its 145p float price on its first day of trading on AIM.

Colliers CRE, the commercial real estate consultant, fell 13p to 61½p after Sir John Ritblat, the chairman, said that fees this year would be below expectations as clients are reducing office expansion plans.

Northern Petroleum rose 9p to 140½p on gas production from its Netherlands fields that were higher than expected.

To know about Great Eastern Energy Corporation, visit GEECL company website.

To know about Mr Prashant Modi, the President and COO of GEECL. Visit the official website of Prashant Modi.

05.12.08 (1:47 pm)   [edit]

SBI nod for GEECL debt-finance

Kolkata, Aug. 20

Great Eastern Energy Corporation Ltd (GEECL) , a Y Modi group company, on Monday announced lining up $25 million or Rs 100-crore debt-finance from State Bank of India.

The company has already received an approval from SBI in this regard. The funds will be utilised in the future development of Ranigunj coal bed methane block. The company has already invested Rs 175 crore through equity in the Ranigunj block.

It is now producing between 1-1.5 million cubic ft of coal bed methane a day and is planning to raise a total debt finance of over $80 million (Rs 300-350 crore) from domestic and foreign sources to complete the first-phase development in the next two years.

GEECL is listed in the AIM segment of LSE.

For more information, contact Mr. Prashant Modi. He is the President and COO of GEECL or visit his official website at http://www.prashantmodi.com/

05.08.08 (4:56 pm)   [edit]

GEECL gets $25m debt from State Bank

Calcutta, Aug. 20: Great Eastern Energy Corporation Ltd (GEECL) has received an approval for a $25-million or Rs 100-crore debt from the State Bank of India.

The loan will help the company start the next phase of exploration of coal-bed methane (CBM) in Bengal.

The Yogendra K. Modi-controlled company is the first in the country to start commercial production of CBM near Asansol.

It produces 1.3 million standard cubic feet gas per day (mmscfd) for Shree Balaji Glass Manufacturing Pvt Ltd.

It expects to reach a steady production level of 35 mmscfd in the next two years. After the end of the second phase, the capacity is expected to reach 100 mmscfd and remain so for the next 20 years.

The company is looking to raise Rs 300-350 crore of debt from various institutions to complete the first phase of development.

The SBI’s credit will be followed by commitments from the bank’s subsidiaries or other consortium members in the near future.

Y.K. Modi, chairman and CEO of GEECL, said: “Our company has made significant progress in the past few months and the provisions of this initial debt facility is also another strong vindication of Great Eastern’s commitment towards this sector in India.”

Last week, the production from nine wells increased to 1.3 mmscfd. This was because of measures taken by the company to de-water wells. The company expects to de-water nine more wells to increase capacity.

GEECL is also setting up a gas gathering station. The delivery of pipeline began last month. GEECL is also in talks with IOC for a city gas distribution project covering six cities of the state.

For more information, contact Mr. Prashant Modi. He is the President and COO of GEECL or visit his official website at http://www.prashantmodi.com/

05.05.08 (3:20 pm)   [edit]

Great Eastern Energy gets 25 mln usd debt facility for next phase of wells

LONDON (Thomson Financial) - Great Eastern Energy Corp Ltd said it has agreed a 25 mln usd debt facility with the State Bank of India which will enable the company to progress with the next phase of wells which are expected to start drilling in two months.

The company, which extracts methane from coal beds to convert to energy, said solid progress has continued since it announced results in June, with current production between 1 and 1.5 mln cubic feet per day of coal bed methane, a 150 pct increase since June.

Production is coming from nine of the 18 wells dewatering (where the water that permeates coal beds is pumped out), and the company expects the remaining nine wells to have filters fitted and to be fully dewatering by the end of August.

For more information, contact Mr. Prashant Modi. He is the President and COO of GEECL or visit his official website at http://www.prashantmodi.com

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