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Company Great Eastern Energy Corp Ltd TIDMGEEC
Headline Rights Issue Released 16:26 21-Nov-2011 Number 4855S16RNS Number : 4855S
Great Eastern Energy Corp Ltd
21 November 2011
21 November 2011
THIS
ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT
FOR
RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRE
CTLY, IN OR INTO
THE UNITED STATES OF
AMERICA, AUSTRALIA, CANADA OR
JAPAN
OR ANY
JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION IS
UNLAWFUL.
THIS ANNOUNCEMENT DOES NOT CONSTITUTE, OR FORM PART OF, AN
OFFER OF,
OR THE SOLICITATION OF AN OFFER TO BUY OR SUBSCRIBE GLOBAL
DEPOSITORY RECEIPTS (GDR)
FOR SHARES OR
Great Eastern Energy Corporation Limited (LSE: GEEC), the
fully integrated, leading Indian
Coal Bed Methane (CBM) company announces a proposed fully
underwritten rights issue
(the "Rights Issue") of 1,500,000 new
ordinary unlisted shares of INR10 each in Great
Eastern ("New Ordinary unlisted Shares") at a price
of INR 450 each (556p), to raise gross
proceeds of approximately INR 675m issued in Great Eastern
will represent
(£8.3m). The New Ordinary unlisted Shares to be approximately
2.52% of the enlarged issued share
capital,
following
completion
of the Rights Issue (assuming it is fully subscribed). In
accordance with Indian Regulations, no GDR are being issued
and no general offer of New
Ordinary unlisted Shares is being made in the UK.
The New Ordinary unlisted Shares being issued will not be
listed and, the Rights Issue price per New Ordinary unlisted
Share, adjusted to reflect the GDR programme (on the basis
that
a GDR
represents half an ordinary unlisted share), is at a discount
of
35p to the middle
market price of the GDR of the Company as derived from the
daily Official List of the London
Stock Exchange on 18 November 2011, the latest date prior to
the announcement.
The proceeds of the Rights Issue will be used by the Company
to help finance an additional
50 wells in the Raniganj Block, for the initial investment in
the new Mannargudi CBM Block and for the general corporate
purposes of the Company.
The Rights Issue is being fully underwritten by YKM Holdings
International Limited or its subsidiaries and associated
companies ("YKMHIL"). YKMHIL is a family owned
corporation controlled by Mr. Yogendra Kr. Modi and Mr
Prashant Modi, being Chairman & CEO and President & COO
respectively of Great Eastern.
The Depositary for the GDR programme is Deutsche Bank Trust
Company Americas. In accordance with Indian regulations, no
further GDR are being issued and hence no general offer will
be made to GDR holders to participate in the Rights Issue, so
only unlisted equity shareholders of the Company can
subscribe to this Rights Issue. The Company has been
made aware that YKMHIL intends to sell up to 3,000,000 GDRs
in the
company and the
Company will update the market once it receives confirmation
that such disposal has taken place.
Outlook:
On 7 November 2011, Great Eastern said in the announcement of
their financial figures for
the half year to 30 Septembe
2011 the following:
"2011 provides us with an opportunity to build on the
success of 2010. The Raniganj Block continues to increase
production, and project execution will be helped by the
second rig and best-of-breed fracturing technology. We have
the infrastructure in place to meet the needs of
the multiple large
industrial
customers
in the region, and consequently each increase in
production feeds directly through to revenue.
In the Mannargudi block, the Environment Clearance is in
process. Work is expected to start in H1 2012, and will
consist of 30 pilot production wells and 50 core holes .
In the last 30 days we have fracced 4
wells after the monsoons were
over, which should
enable us to complete up to 40 wells per year.
Looking further ahead we have an exciting drilling schedule
with some 204 wells planned to
be drilled over the next six
years on
the Raniganj block alone, and
we look forward to
delivering future value for our shareholders."
Commenting on the Rights Issue, Yogendra Kr. Modi, Chairman
and CEO, said:
"Alongside the proceeds raised in the Rights Issue, we
are in negotiations with a number of banks to arrange further
credit lines. These, taken together, will ensure we are fully
funded for our work programmes for the foreseeable
future."
Richard Day
Adrian Trimmings
Chairman & CEO +44 (0)20 7337 1516
President & COO
+44 (0)20 7614 5917
+44 (0) 20 7920 2344
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