Great East Energy Could See More Pipeline, More Customers and More Revenues With Larger Natural Gas Footprint
NEW YORK, NY--(Marketwired - Feb 27, 2014) - Great East Energy, Inc. (OTCQB: GASE) is just getting started in Ukraine with its natural gas footprint, and a recent injection of $1.49 million in private financing should allow the company to continue adding to its 162 square miles of producing clean energy assets. When Great East Energy acquired its current property in late 2013, it quickly added to its worth with built-in annual revenues and with property and equipment values.
But, the greatest value, of course, is what is still to come for the company and that is the production and sales of reported gross total reserves on their licensed area of 47 billion cubic feet of natural gas, and this may be just the beginning of a very valuable future.
Currently Great East Energy owns assets, through the acquisition, that have been producing gas since 2003, own two gas processing facilities, and over eight miles of gas pipelines to their customers. These assets bring over $1 million of retained earnings and over $1.1 million in property, plant and equipment to the Great East Energy balance sheet. These values are likely to increase as the cost of natural gas continues to rise, and as the company implements North American capital, industry knowledge and technology which are all made easier with the recent private funding.
These producing assets are already working for Great East Energy, but the company's CEO, Timur Khromaev, doesn't plan to stop there. His aim is to expand the company's area up to 1000 square miles, and when you understand just how much proved reserves of natural gas there are in Ukraine, it's easy to understand why.
According to the U.S. Energy Information Administration, proved reserves of natural gas in Ukraine were estimated at 39 trillion cubic feet. Ukraine's total shale gas deposits are estimated at around 200 trillion cubic meters placing the country third just behind Poland and Norway with the most proved reserves in Europe. In addition, Ukraine has CBM reserves totaling 42 trillion cubic feet.
With a potential expansion of the Great East Energy footprint, this is good news for investors as the company can further take advantage of natural gas prices that are three times higher than here in the U.S., and use the additional assets to generate more revenues by extending its pipeline to even more customers.
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