SOURCE: Great East Energy, Inc.

June 11, 2014 08:15 ET

Great East Energy Inc. Comments on Natural Gas Talks Between Ukraine and Russia

GASE Anticipates More Demand of Its Locally-Produced Natural Gas

NEW YORK, NY and KIEV, UKRAINE--(Marketwired - Jun 11, 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 provided the Company's outlook on talks between natural gas representatives from the Ukraine and Russia. A new round of negotiations between Ukraine and Russia over natural gas supplies began Monday evening in Brussels, aided by the European Union.

As reported by the UPI, the talks regarding payment of debt by the Ukrainian energy company Naftogaz to Russian energy company Gazprom, come after Ukrainian President Petro Poroshenko was inaugurated in Kiev Saturday. Ukraine risks losing deliveries of Russian gas unless debts to Gazprom are paid by June 10. At issue is a near-double increase in prices, to $485 per 1,000 cubic meters of gas, effective April 1, demanded by Gazprom after Ukrainian President Viktor Yanukovych was overthrown. Payments of arrears made by Ukraine prompted Gazprom to eliminate a demand that future gas shipments must be paid for in advance.

Russian Energy Minister Alexander Novak and Ukrainian Energy Minister Yuri Prodan are participating in the talks, with European Union Energy Commissioner Guenther Oetttinger as mediator.

"Many natural gas producers in the Ukraine are very positive on the outcome of these talks," began Timur Khromaev, CEO of GASE. "Settlement of issues between both state-run producers and the normalization of pricing is expected to benefit our sales of our locally produced natural gas, increase pricing and expand our customer network in the Ukraine and internationally. During the conflict, our operations proceeded as normal though we did take precautions for our employees' travel to our offices. We maintained 100% of our service to our customers and we continued our expansion plans and upgrades to our current facility to maximize production of CNG. The talks heightened our country's strategic reliance on natural gas has focused attention on the importance of locally-produced natural gas. Both are positive trends in our business and will be a foundation or our growth for years to come."

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 Information