Ann: FUT: FUTURE CORP TO INVEST IN COAL SEAM METH, page-11

re: Ann: FUT: FUTURE CORP TO INVEST IN COAL S... Poyndexter,

Lorraine, Gazonor and Lons were not farmed out because all the candidates withdrew after consulting the data room.
As per the "dead wood" theory of Moodchips, these projects should be even deader than the ones that found a candidate. This is not my feeling.

The debt funding can not be used for the projects. The amount is too loow to be anything else than a drip for the Co. On the other hand keep in mind that EGL has to find 26 millions Euros to refund CNP in 15 months or get the shares diluted.

All the permits are on a "pay or loose" basis. EGL has to prove it meets the financial commitments. Given the permitted surfaces, they are huge... The french Authorities are third party in the game. If they feel that EGL is cheating them, they can block the granting and renewal of nearly all permits.

In this respect, the Future Corp JV is a bad new. They can't even afford a single well (that will cost 2 millions Euros and not 1.5). They can't prove any long term financial capability, they do not bring any know-how. When the french authorities will become aware of that, EGL will be in an awkward situation. The resulting loss of goodwill from the french governement can be a serious problem. That's why the FC agreement is causing more problems than it solves.

Mr Rob Bresnehan has been consulting for EGL since 2006, so there is no bonus here(unless he wishes to make a discount on his consultancy rates because he is at the board?). I leave to your judgment the effect of it's past recommendations on EGL's performances.

Mr Moulin's position is more interesting. Maoming has no rational interest in EGL and that's why I believe that he is there for other reasons. Anyway He will bring welcomed entrepreneurial spirit inside the board.. and outside.