13/12/2005 Great Eastern Energy Corporation joins AIM
13 December 2005
Great Eastern Energy Corporation joins AIM
The London Stock Exchange today welcomed Great Eastern Energy Corporation Ltd to AIM, the Exchange’s global market for growing companies. Great Eastern Energy is a company incorporated in India to explore, develop, distribute and market Coal Bed Methane - is the first Indian-incorporated company to issue its securities on AIM.
Proceeds from the Great Eastern Energy’s AIM quotation will be used primarily to fund infrastructure projects and to develop the first 20 wells of the company's development plan. The company successfully raised £19m of funds through a conditional placing of 12.1m GDRs and the sale of approximately 6.9m GDRs at 101p per GDR. Both transactions were executed by Arden Partners.
Mr Y.K. Modi, Chairman and Managing Director of Great Eastern Energy, said:
“We appreciate the strong support we have received from institutional investors on our flotation on the AIM market. The listing and placing of our GDR’s will provide Great Eastern EnergyL with the funds to develop the first 20 wells in the company's development plan as a supplier of Coal Bed Methane in West Bengal, India.”
I am delighted that our Offer has been such a success and I welcome all our new shareholders and thank them for their support. The Great Eastern Energy team are excited by the exceptional growth opportunities that now awaits the company and are keen to press ahead and convert those opportunities into growth for shareholders.”
Great Eastern joins a further three companies that have joined AIM, but have done so with a UK-incorporated holding company. AIM now has a total of 1,363 companies, incuding over 200 from outside the UK. 2005 has been the most successful year in AIM’s 10 year history with a total of 451 new companies joining the market raising a total of £4.4 billion.
About the company
Great Eastern Energy is the leading exponent of Coal Bed Methane technology in India. Its principal operations are in West Bengal approximately 200km north of Kolkata where the company has drilled three pilot production wells. From the core well samples Schlumberger has estimated that the total gas-in-place in GEECL’s licence area is approximately 1.386 tcf. Following the successful fundraising, the company expects the drilling of a further 20 wells to commence during the first quarter of 2006. The development plan for the project involves drilling 100 wells over an estimated four year period.