Great East Energy Inc. Increases Pricing for Its Natural Gas
12 May 2014 - 11:33PM
Marketwired
Great East Energy Inc. Increases Pricing for Its Natural Gas
Pricing to Customers Now at USD $10.68 per MCF
NEW YORK, NY and KIEV, UKRAINE--(Marketwired - May 12, 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
it has implemented a 28% pricing increase to its customer base.
The pricing increase is a direct result of a valuation of the
Ukrainian Hryvnia, which has devalued more than 40% over the past
four months. To maintain its targeted USD $11.00 MCF pricing
levels, the management team of Great East Energy passed through the
28% price increase from 95.76 UAH to 121.78 UAH per MCF. Local
UAH pricing corresponds to an increase from USD $8.40 to USD $10.68
per MCF at the official exchange rate of Ukrainian Hryvnia on May
1, 2014.
The pricing increase was in effect as of May 1 and will be
reflected on the Company's second quarter, 2014 earnings report and
10-Q filed with the SEC. Great East Energy intends to
implement additional price increases to its customers to reach its
USD $11.00 MCF price target in the near term. By comparison,
US prices per MCF averaged USD $2.65 in 2012 according to monthly
pricing data reported to the U.S. Energy Information
Administration.
"As expected, our customer base understood our needs to raise
prices," began Great East Energy CEO, Timur Khromaev. "After seeing
months of currency devaluation, we believe the devaluation has
subsided which was the appropriate time to raise our local currency
prices to reach our target of USD $11.00 MCF. We have built
our financial models on these pricing levels and we are certain we
will maintain our competitive position in the market at such
prices. While the situation in the Ukraine remains tense, our
operations have not been affected. The natural gas industry in
the Ukraine remains a widely supported industry on a national level
and also by the European Union and United States."
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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