thoughts on fundermantals, page-6

Dafeido,

To make it quick...

1) There is curently no similar to EPG. If any of the gentlemen who bully you can give one, he will surely be given a chocolate medal by the CFO of EPG... The lack of reference has been a continuous problem for EPG. The investors love benchmarks and feel lost without.

2) Coal basins are all different and require different keys to unlock the gas flow. To know of San Juan and Black warrior will be good for your general knowledge but is not of much help outside these area. It's true that Windsor and Enron drilled in Lorraine in the 90's. They got no results because they used testing methods currently in use in San Juan (cavitation).. Of course they got no flow.

3)To valuate EPG you can only rely on published data. The "gossips" can give a posteriori explanation of the curious behavior of EPG, they have no predictive value.
The ressources (not reserves) have been published, cross with current market price for natural gas (be carefull, CBM is not nat gas, it is gas mixture..). try to get an idea of the amount of the necessary investments.

Use common sense and do not try to do too much of the infos you have. Most of the informations will never come to you, company reports are orientated. If you dont understand the moves of a company be alert. If they decidely dont make sense follow Warren Buffet's advice... leave.

When I read some posts here and compare with the reality of EPG, I can only be astonished on how fragile the investment decisions are.