Great Eastern Energy (LON:GEEC) – Reserves Up, But Development Needed: Today’s news is a boon for the work that has been put in to date, and now that the appraisal programme is completed, it is imperative that the Prashant Modi led Company starts to deliver operationally, and starts ramping up production. Following this news, we are reiterating our BUY Recommendation and 440p Target Price.
In this news:
• Original-Gas-In-Place (OGIP) increased 2% to 2.40 TCF (from 2.35 TCF as at May 2012)
• Proved, Probable and Possible reserves (3P) increased 7% to 277 BCF (from 258 BCF as at May 2012). This represents a 507% increase from the time of Great Eastern’s listing on the Main Board of the London Stock Exchange, in May 2010 (3P numbers reported as at November 2009).