Great Eastern Energy Issues Interim Management Statement

Great Eastern Energy Corporation (LSE:GEEC), an Indian Coal Bed Methane (CBM) company, today issued its Interim Management Statement for the period from 1 April 2011 to the date of this announcement as required by the UK Listing Authority Disclosure and Transparency Rules.

Financial Highlights

• As per the unaudited management accounts for the 3 months ended 30 June 2011, Sales were US$ 5.15 million [3 months ended 30 June 2010: US$ 2.45 million]. Increase of 110%;
• EBITDA for the 3 months ended 30 June 2011 is US$ 3.05million [3 months ended 30 June 2010: US$ (1.26) million];
• PBT for the 3 months ended 30 June 2011 is US$ 0.80million [3 months ended 30 June 2010: US$ (1.00)million];
• The Company has a long term debt of US$ 86.38million as at 30 June 2011.

Upstream Highlights

• Second drilling rig commissioned and in operation;
• Second fracturing unit in operation;
• 62 wells dewatering / producing (53 at 31 March 2011);
• Production 7.45mmscfd (6.57 mmscfd at 31 March2011)
• Drilled 87 wells (79 wells at 31March 2011);

Notwithstanding a particularly severe monsoon season in Raniganj, the company continued to progress on its operational plan according to the target.

Downstream Highlights:

• Great Eastern continues to supply to its existing customer base while adding further new industrial customers;
• Additional contracts / MOU signed during the period for 2.61 mmscfd;
• 33.81 mmscfd gas under contract /MOU (31.22 mmscfd at 31March2011);
• The Company has sufficient contracts in hand to meet its projected production targets;
• Further discussions underway with major customers.

Mannargudi CBM block

As previously reported, the Company signed a Production Sharing Contract ("PSC") with the Government of India on 29 July 2010. The Company has received the requisite approval for a Petroleum Exploration License ("PEL") from the Government of Tamil Nadu, with the deed to be signed. The Company has also applied for Environment Clearance which is in process.

The Company plans to drill 50 core holes and 30 production wells within 5 years of executing the PEL. Preliminary reconnaissance survey work, including geological mapping and data collection for planning the core wells is underway.

Outlook

Great Eastern is well positioned to:

• Complete its planned development activities in 2011;
• Meet its production targets;
• Meet market expectations in terms of financial performance.

Commenting, Prashant Modi, President and COO of Great Eastern, said: "Great Eastern continues to make good progress across the business. Our financial performance has been encouraging and we are in line to meet market expectations for both our financial and production performance.With a bank of drilled wells still to be fracced we look forward to continued growth."