New York, NY (PRWEB) November 27, 2013
Great East Energy, Inc. which through an exclusive option agreement controls 400 square kilometers of producing European clean energy holdings in Ukraine, has completed a reverse merger and investment with a publicly-traded company in the U.S. and now trades on the OTC BB market under the stock symbol GASE. In a simultaneous financing the Company sold common stock in a private placement to certain investors, and issued shares valued at USD$26 million for the option to purchase producing and distributing natural gas companies, their processing facilities and pipelines to customers, all located in Ukraine.
Great East Energy is a development stage company targeting the growing independent 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. Following the exercise of its exclusive option, the completion of GASE's planned well development activities are planned to result in a multi-million dollar inward investment into the Ukraine.
On July 25, 2013, GASE entered into a Stock Purchase Option Agreement (the “Option Agreement”) with Bezerius Holdings Limited, a corporation organized under the laws of the Republic of Cyprus (“BHL”), whereby BHL granted to GASE an option to purchase 1,000 shares of equity capital of Synderal Services LTD, a corporation organized under the laws of the Republic of Cyprus ("SSL"), representing all issued and outstanding shares of SSL. SSL is engaged in the gas exploration and production business in Ukraine through its two wholly-owned subsidiaries, Limited Liability Company NPK-KONTAKT and Limited Liability Company LISPROMGAZ, each a legal entity formed under the laws of Ukraine. The Ukraine companies have been producing gas since 2003, own two gas processing facilities, and 13.5 kilometers of gas pipelines to their customers.
Simultaneous with the above transactions, the Company issued shares of Common Stock to BHL representing approximately 51% ownership in connection with the option grant closing under the Option Agreement. Such Common Stock was issued in accordance with an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), under Section 4(2) of the Securities Act by virtue of compliance with the provisions of Regulation S under the Securities Act. For full details see the Form 8-K filed at http://www.sec.gov.
GASE’s exclusive option allows it to buy producing and distributing unconventional gas companies in the Dnieper-Donets Basin of southeastern Ukraine, with current production, infrastructure, and a government license already in place. The 400 square kilometer property covered by the license has seven major dome structures, and according to its owners, has already produced nearly one billion cubic feet of gas.
GASE’s assets are surrounded by Royal Dutch Shell’s Yuzivske gas field comprising nearly 8,000 square kilometers, which was the featured asset in a USD$10 billion contract signed by Ukraine President Viktor Yanukovych at Davos, Switzerland earlier in 2013. As reported by Reuters in January 2013, Ukrainian Energy Minister Eduard Stavytsky said Shell will spend about two years and $410 million to explore the Yuzivske shale gas area and assess its reserves.
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.
+1 646 248-5515
Dan McClory, Managing Director
Hunter Wise Financial Group, LLC
+1 949 732 4102