It is the Company's first Coal Bed Methane gas pipeline and form part of a vertically integrated network consisting of drilling, production, compression transportation and distribution services, the company stated.

The pipeline is capable of carrying 1 million standard cubic metres of gas per day.

Prashant Modi, President and COO of Great Eastern Energy said the commissioning of the pipeline was a milestone for the company: "Great Eastern Energy is delighted to commission its first trunk pipeline connecting its Gas Gathering Station to its Central Gathering Station, thus achieving a milestone in the construction of its pipelines."

During the period, Great Eastern Energy installed pumps in seven wells, commissioned a new drill rig, fractured nine wells and commenced drilling of its thirteenth well.  A gas gathering station was also completed and commissioned, while two distribution pipelines are on track to be finished "this month".

"One of the distribution pipelines will connect the gas gathering station on the license block to the central gas gathering station at Asansol, which is a key local market and will be the central point for distributing natural gas throughout the region. The second pipeline connects the central gas gathering station to SAIL Growth Works in Kulti, which is part of the Steel Authority of India Ltd. Both are expected to be completed on target within December 2008," the company added.

On the sales front, Great Eastern also confirmed that it had added 70 CNG customers in the last six month and opened two more CNG stations in Asansol and Durgapur.
 
"Great Eastern remains in a strong position, with further progress having been made over the last six months in all key areas of the business. As the Company currently stands, it has made significant progress in successfully developing the licence area, has achieved gas production volumes ahead of initial planned rates and sits on the verge of achieving meaningful gas sales," the company said.

Current gas sales, including internal consumption by Great Eastern, stands at 200 mcf/d.

"Despite expectations that the Indian economy will slow to around 7% GDP growth in the year ahead, Great Eastern remains well placed with its key market situated in the immediate vicinity and limited competition. Great Eastern was the first producer of CBM gas in India and is the only CBM producer is its market area. The main alternatives sources of fuel include commercial LPG, furnace oil, petrol and diesel, all of which continue to be substantially more expensive for end users than gas produced by Great Eastern."

Great Eastern said that it had $1.7million of cash and an undrawn debt of $40.6million from a $71million facility.

Looking ahead, the company said it was still planning to complete a secondary IPO in India.