Great East Energy, Inc. announced the company has signed a letter of intent to joint venture with a leading compressed natural gas distributor and retailer in Ukraine, GASE's home market. The JV is expected to be formally agreed and launch in June 2014 and meaningfully contribute to GASE revenues, higher margins, and earnings. GASE's intended JV is with a renowned CNG station operator with currently 10 stations in major cities in Ukraine.

In 2013, the private company sold approximately USD 6.8 million of CNG, which equated to approximately 307 million cubic feet of gas. Based on 2013 average selling prices, the private company's gross margins were approximately 30%. After the successful completion of addition operational and financial due diligence by GASE, Great East Energy and the private company are expected to cooperate on a project to expand CNG distribution and filling stations in Ukraine and penetrate high-volume cities with growing fleets of buses, municipal vehicles and transportation companies converting gas and diesel vehicles to clean and efficient natural gas-powered engines.