Coal bed methane drives revenues at Great Eastern Energy Corp.
Coalbed methane (CBM) has helped drive the revenues of one of India’s leading CBM production companies up by almost 20%.
Great Eastern Energy Corp. has announced that its revenues rose by 18% to US$ 34.44 million in the year to the end of March. The company – one of the leading Indian CBM operators – said that on a constant currency basis, total revenue had increased by 31%.
Earnings before interest, tax, depreciation and amortisation increased by 28% to US$23.92m - up 42% at constant currencies at Rs 1447 million.
President and chief operating officer, Prashant Modi, said: “In the 12 months to 31 March 2014 Great Eastern made material progress across the business, delivering significant growth in production, revenue, and profit.”
"The revenues, sales volume, and profitability continue to show good growth. We have plenty to do with our current producing acreage and we are looking forward with confidence. With finalisation of the agreements for the Raniganj (North) Block and approval awaited from the State Government for our other Mannargudi Block we look forward to commencing work on those blocks," Modi added.
Great Eastern Energy Corp is a fully integrated CBM company – operating in upstream, midstream and downstream sectors. Both Modi and the company are sure that the market for CBM is there, and that the sector will see continued growth in the coming years.
Modi said: “The supply and demand dynamic for Indian gas and CBM, and the pricing environment, remains extremely attractive and is likely to remain so for some years to come. Great Eastern is well placed to supply gas in and around highly industrialised region of Asansol-Raniganj-Durgapur through our own dedicated pipeline network.”
“We continue to make progress in production and sales ramp-up. A total of 156 wells have now been drilled at our Raniganj (South) block, with a total of 149 wells dewatering / producing gas, a 17% increase over the corresponding period in the last year,” Modi continued, as he explained the progress the company had made over the last year.
Great Eastern Energy Corp. has been awarded a 25% Participating Interest in Raniganj (North) Block which was offered by ONGC through a competitive bidding process initiated in January, 2013. The current operator of this block is ONGC. The Gas-in-Place in the entire Raniganj (North) Block as per the Directorate General of Hydrocarbons (DGH) is 1.5 trillion ft3 as of 6 February 2003. The Farm-in related Joint Operatorship agreements are under negotiation and thereafter it is subject to the approval from the Government of India.
Modi also saw a bright future for both Great Eastern Energy Corp., and the CBM industry in India, now that Narendra Modi and his BJP party are in government: “With the new Government in place, we are confident that the general economic conditions will improve thereby giving a new impetus to growth,” Modi said.
Written by Sam Dodson
Read the article online at: https://www.worldcoal.com/cbm/28072014/coalbed-methane-drives-revenues-at-great-eastern-energy-corp-cbm85/
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