Great East Energy Inc. Reports FY2013 Financial Results
17 April 2014 - 12:55AM
Marketwired
Great East Energy Inc. Reports FY2013 Financial Results
NEW YORK, NY and KIEV, UKRAINE--(Marketwired - Apr 16, 2014) -
Great East Energy, Inc. (OTCQB: GASE) (the "Company") which
controls over 160 square miles of producing clean energy holdings
through two local operating companies, today announced its full
year 2013 financial results for the period ended December 31,
2013.
Full Year 2013 Financial Highlights
Increases in natural gas pricing lifted 2013 revenues by $21.6
thousand to $274.4 thousand for the year compared to revenues of
$252.8 thousand for the year ended December 31, 2013. Pricing
increases were a strong trend in 2013 though GASE's natural gas
sales volumes decreased by 2.5 MMcf to 28.5 MMcf for the year. The
average price the Company obtained on the sale of its natural gas
was $9.63 per thousand cubic feet ("Mcf") in 2013 compared to $8.15
per Mcf in 2012. In 2013, GASE's natural gas sales averaged
79.17 Mcf per day. The volume decrease was due to the natural
depletion of two of the Company's productive wells. GASE's
162-square mile property has seven major dome structures, which
while under prior ownership has already produced nearly one billion
cubic feet of gas. Twelve core wells and five vent-wells have been
drilled on the producing domes. GASE's assets are surrounded
by Royal Dutch Shell's Yuzivske gas field comprising over 3,000
square miles. The preliminary resources estimate of the
Yuzivske gas field is up to 300 trillion cubic feet. GASE is
actively drilling new wells identified on its property and
researching additional "greenfield" drilling sites.
GASE's "other sales" mainly included revenues using the
Company-owned transportable machinery and equipment, such as a
cementing unit, compressor unit, and pump set to render services to
third parties. Other revenues increased by $3.60 thousand to $53.7
thousand for the year ended December 31, 2013. Other income of
$20.5 thousand in 2013 included interest income of approximately $
19.8 thousand earned on bank deposits.
The Company's operating and maintenance expenses of $249.8
thousand is attributed to wages and salaries of the gas production
personnel, cost of materials, taxes and duties. Operating and
maintenance expenses increased by $34.3 thousand in 2013 compared
to 2012 mainly due to increases in material expenses.
General and administrative ("G&A") expenses decreased by
$22.28 thousand to $196.68 thousand for the year ended December 31,
2013, from $174.39 thousand for the year ended December 31, 2012.
On a per unit basis, G&A expenses increased from $5.62 per Mcf
sold in 2012 to $6.90 per Mcf sold in 2013.
Operating loss was approximately $3.96 million for the year
ended December 31, 2013, as compared to the operating loss of
approximately $153.95 thousand for the year ended December 31,
2012. The increase in operating loss is primarily attributed to
professional fees expenses, and to a lesser extent, to increases in
other operating expenses. Excluding the impacts of professional
fees, operating result decreased $52.58 thousand to $206.53
thousand for the year ended December 31, 2013, from $153.95
thousand for the year ended December 31, 2012.
GASE's net loss was approximately $3.96 million for the year
ended December 31, 2013, as compared to net income of $26.16
thousand for the year ended December 31, 2012. The decrease was
primarily the result of an increase in operating expenses for the
year ended December 31, 2013 as compared to 2012.
Business Outlook:
Great East Energy is working to further develop its estimated
gross total reserves of 47 billion cubic feet (BCF) of natural gas
in the GASE license area. GASE's wholly-owned subsidiary
controls two companies which have been producing gas since 2003.
GASE additionally owns two gas processing facilities, and over
eight miles of gas pipelines to their customers.
In a press release on March 25, Timur Khromaev addressed the
market and GASE shareholders with his Company's positive outlook in
the market and the heightened focus on the Ukraine in the
media. To view video interview of GASE CEO Khromaev visit:
http://ir.greateastenergy.com/
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.
GREAT EAST ENERGY, INC. |
BALANCE SHEET |
For The Years Ended December 31, 2013 (Consolidated)
and 2012 (Combined) |
|
|
|
(Consolidated) |
|
|
(Combined) |
ASSETS: |
|
December 31, 2013 |
|
|
December 31, 2012 |
|
|
|
|
|
|
|
|
Cash |
|
$ |
99,650 |
|
|
$ |
199,403 |
Accounts receivable, net |
|
|
6,207 |
|
|
|
21,964 |
Investments |
|
|
- |
|
|
|
340,576 |
Inventories |
|
|
41,749 |
|
|
|
57,038 |
Other
current assets |
|
|
7,281 |
|
|
|
4,940 |
Deferred income tax assets |
|
|
2,945 |
|
|
|
3,519 |
Total
current assets |
|
|
157,832 |
|
|
|
627,440 |
|
|
|
|
|
|
|
|
Long-term assets: |
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
1,090,537 |
|
|
|
1,201,631 |
Deferred income tax assets |
|
|
21,015 |
|
|
|
11,511 |
Total
Long-term assets |
|
|
1,111,552 |
|
|
|
1,213,142 |
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
1,269,384 |
|
|
$ |
1,840,582 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Notes
payable to related parties |
|
$ |
4,453 |
|
|
$ |
424,012 |
Bank
overdraft |
|
|
454 |
|
|
|
304 |
Accounts payable |
|
|
87,585 |
|
|
|
36,917 |
Taxes
payable |
|
|
9,567 |
|
|
|
74,283 |
Related party payables |
|
|
340,525 |
|
|
|
25 |
Total
current liabilities |
|
|
442,584 |
|
|
|
535,541 |
|
|
|
|
|
|
|
|
Long-term liabilities: |
|
|
|
|
|
|
|
Notes
issued |
|
|
- |
|
|
|
25,890 |
Asset
retirement obligations |
|
|
56,917 |
|
|
|
53,591 |
Total
current liabilities |
|
|
56,917 |
|
|
|
79,481 |
|
|
|
|
|
|
|
|
Total
liabilities |
|
|
499,501 |
|
|
|
615,022 |
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
Preferred stock - $.0001 par value; 10,000,000 shares authorized; 1
shares issued and outstanding |
|
|
- |
|
|
|
- |
Common stock - $.0001 par value; 100,000,000 shares authorized;
51,177,896 and 188,160,000 shares outstanding at December 31 2013
and 2012, respectively |
|
|
5,118 |
|
|
|
18,816 |
Additional paid-in capital |
|
|
3,569,051 |
|
|
|
50,801 |
Accumulated deficit |
|
|
(2,804,286 |
) |
|
|
1,155,943 |
Total
stockholders' equity |
|
|
769,883 |
|
|
|
1,225,560 |
Total
liabilities and stockholders' equity |
|
$ |
1,269,384 |
|
|
$ |
1,840,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREAT EAST ENERGY, INC. |
|
STATEMENTS OF OPERATIONS |
|
For The Years Ended December 31, 2013 (Consolidated)
and 2012 (Combined) |
|
|
|
REVENUES AND OTHER INCOME |
|
(Consolidated) 2013 |
|
|
(Combined) 2012 |
|
|
|
|
|
|
|
|
Gas
sales |
|
$ |
274,435 |
|
|
$ |
252,817 |
|
Other
sales |
|
|
53,669 |
|
|
|
50,067 |
|
Other income |
|
|
20,507 |
|
|
|
41,633 |
|
Total
Revenues and Other Income |
|
348,611 |
|
|
|
344,517 |
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
Organizational expenses |
|
|
902 |
|
|
|
- |
|
Operating and maintenance expenses |
|
|
249,748 |
|
|
|
215,436 |
|
General and administrative expenses |
|
|
196,675 |
|
|
|
174,393 |
|
Depreciation, depletion and amortization |
|
|
107,811 |
|
|
|
108,640 |
|
Professional fees |
|
|
3,749,830 |
|
|
|
- |
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
4,304,966 |
|
|
|
498,469 |
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(3,956,355 |
) |
|
|
(153,952 |
) |
|
|
|
|
|
|
|
Other
Income (Expense): |
|
|
|
|
|
|
|
|
Finance costs |
|
|
(8,240 |
) |
|
|
(3,449 |
) |
Income from sale of emission reduction units |
|
|
- |
|
|
|
215,885 |
|
Foreign currency translation adjustment |
|
|
(501 |
) |
|
|
(503 |
) |
Other
Income (Expense) |
|
(8,741 |
) |
|
|
211,933 |
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE INCOME TAX |
|
|
(3,965,096 |
) |
|
|
57,981 |
|
Income tax benefit/(provision) |
|
|
4,867 |
|
|
|
(31,821 |
) |
NET INCOME (LOSS) APPLICABLE TO COMMON SHARES |
$ |
(3,960,229 |
) |
|
$ |
26,160 |
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) PER BASIC AND DILUTED SHARES |
|
$ |
(0.08 |
) |
|
$ |
0.00 |
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING |
|
|
46,678,979 |
|
|
|
178,245,256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREAT EAST ENERGY, INC. |
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY |
For the years ended December 31, 2013 (Consolidated) and 2012
(Combined) |
|
|
Preferred Stock |
Common Stock |
Additional Paid-in Capital |
Advances Stock Subscriptions Subscriptions
from Accumulated Receivable Investors Deficit |
Total Stockholders' Equity |
Shares Amount |
Shares |
Amount |
|
|
|
|
|
|
|
Balances at December 31, 2011 |
-
$ - |
168,000,000 |
$
16,800 |
$
14,617 |
$
(9,000) $ |
-
$ 1,129,783 |
$
1,152,200 |
Stock
subscription payment received |
-
- |
- |
- |
- |
9,000 |
-
- |
9,000 |
Common stock issued for cash |
-
- |
20,160,000 |
2,016 |
36,184 |
- |
-
- |
38,200 |
Net income |
- - |
- |
- |
- |
- |
- 26,160 |
26,160 |
Balances at December 31, 2012 |
-
- |
188,160,000 |
18,816 |
50,801 |
$
- |
-
1,155,943 |
1,225,560 |
Recapitaliztion adjustment |
-
- |
- |
- |
(441,509) |
- |
-
- |
(441,509) |
Common shares issued for option agreement |
1
- |
25,964,951 |
2,597 |
|
- |
-
- |
2,597 |
Cancelation of shares shares per option agreement |
-
- |
(168,000,000) |
(16,800) |
16,800 |
- |
-
- |
- |
Common Stock Sold for Cash, net of offering costs of $89,593 |
-
- |
1,274,961 |
127 |
1,350,263 |
- |
(200,000) - |
1,150,390 |
Common shares issued for services |
-
- |
3,777,984 |
378 |
3,777,606 |
- |
-
- |
3,777,984 |
Contribution of additional paid-in capital |
-
- |
- |
- |
67,687 |
- |
-
- |
67,687 |
Investment in subsidiary |
|
|
|
(1,252,597) |
|
|
(1,252,597) |
Advance subscriptions from investors |
-
- |
- |
- |
- |
- |
200,000 - |
200,000 |
Net loss |
- - |
- |
- |
- |
- |
- (3,960,229) |
(3,960,229) |
Balances at December 31, 2013 |
1 $ - |
51,177,896 |
$ 5,118 |
$ 3,569,051 |
$ - $ |
- $ (2,804,286) |
$ 769,883 |
CONTACT:
www.greateastenergy.com John Mattio +1 646 248-5515
ir@greateastenergy.com
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