Great East Energy Inc. Signs Letter of Intent to Enter CNG Distribution and Sales Business
2014年4月22日 - 9:15PM
Marketwired
Great East Energy Inc. Signs Letter of Intent to Enter CNG
Distribution and Sales Business
Joint Venture With Leading CNG Distributor and Retailer Expected
to Provide New, High-Margin Revenue Streams for GASE's Gas
Production
NEW YORK, NY and KIEV, UKRAINE--(Marketwired - Apr 22, 2014) -
Great East Energy, Inc. (OTCQB: GASE) (the "Company") which
controls over 160 square miles of producing, clean energy, natural
gas holdings through two local operating companies, today announced
the Company has signed a letter of intent ("LOI") to joint venture
with a leading compressed natural gas ("CNG") distributor and
retailer in Ukraine, GASE's home market. The JV is expected to be
formally agreed and launch in June 2014 and meaningfully contribute
to GASE revenues, higher margins, and earnings.
"Few investors in GASE realize that the Ukraine is the 8th
largest natural gas vehicle ("NGV") market in the world and the 2nd
in Europe behind Italy," began Timur Kkromaev, CEO of GASE. "As we
continue our natural gas exploration and expand production,
entering the CNG distribution and sales segment is a logical step
to diversify our customer base, increase our revenues, boost our
margins and increase returns to our shareholders."
According to Company statistics, the vast majority of the
Ukraine NGV fleet is composed of retrofitted CNG-powered vehicles.
Since there remains a low percentage of factory-built models
distributed by major automotive brands in Ukraine, most retrofitted
NGVs in Ukraine are fleet and heavy duty vehicles such as buses and
trucks. Interest in CNG-fuelled vehicles is prevalent in large
cities in Ukraine, where station and filling infrastructure is
quickly developing and where there is strong municipal support.
Ukraine now counts 332 CNG filling stations nationwide and is
considered an important component of the country's fuel market. In
2013 the consumption of CNG in Ukraine was approximately 6.4
billion cubic feet, an increase of 15% year over year. The cost
advantage for fuelling NGVs compared to traditional diesel or
gasoline-fuelled models is the market driver behind wider use of
natural gas as a transportation fuel in the country.
GASE's intended JV is with a renowned CNG station operator with
currently 10 stations in major cities in Ukraine. In 2013, the
private company sold approximately USD $6.8 million of CNG, which
equated to approximately 307 million cubic feet of gas. Based on
2013 average selling prices, the private company's gross margins
were approximately 30%. After the successful completion of addition
operational and financial due diligence by GASE, Great East Energy
and the private company are expected to cooperate on a project to
expand CNG distribution and filling stations in Ukraine and
penetrate high-volume cities with growing fleets of buses,
municipal vehicles and transportation companies converting gas and
diesel vehicles to clean and efficient natural gas-powered
engines.
"Though our core business will remain the exploration and
distribution of natural gas, CNG distribution and retail sales has
been a focal point of our long-term strategy. We believe we have
found an excellent partner in this regard. We look forward to the
development of our plan with our partner, refining the economics
and financial model of our JV and adding CNG sales to our revenue
and earnings streams beginning in 2014," CEO Timur Khromaev
concluded.
About GASE: Great East Energy is a producing, development stage
company targeting the growing independent natural gas production
industry of Ukraine, as Europe's second-largest country by land
mass makes energy self-sufficiency from Russia a priority. With
Ukraine natural gas priced over three times U.S. levels, the energy
industry holds compelling economics as well. Through its local
operating subsidiaries NPK-KONTAKT and LISPROMGAZ, the completion
of GASE's well development activities are planned to result in a
multi-million dollar inward investment into Ukraine.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995 This press release contains forward-looking
statements made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. Forward looking
statements are based upon the current plans, estimates and
projections of the Company's management and are subject to risks
and uncertainties, which could cause actual results to differ from
the forward looking statements. Such statements include, among
others, those concerning market and industry segment growth and
demand and acceptance of new and existing resources; any
projections of sales, earnings, revenue, margins or other financial
items; any statements of the plans, strategies and objectives of
management for future operations; any statements regarding future
economic conditions or performance; uncertainties related to
conducting business in Ukraine, as well as all assumptions,
expectations, predictions, intentions or beliefs about future
events. Therefore, you should not place undue reliance on these
forward-looking statements. The following factors, among others,
could cause actual results to differ from those set forth in the
forward-looking statements: business conditions in Ukraine, general
economic conditions; geopolitical events and regulatory changes,
availability of capital, the Company's ability to maintain its
competitive position and dependence on key management. This press
release does not constitute an offer to sell or the solicitation of
an offer to buy any security and shall not constitute an offer,
solicitation or sale of any securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of such
jurisdiction.
CONTACT:
www.greateastenergy.com John Mattio +1 646 248-5515
ir@greateastenergy.com
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