HI Pixie, Best guess (and that is all it is) the Maoming mob...

HI Pixie,

Best guess (and that is all it is) the Maoming mob drove the sp up to the 20's and now they are sitting on what they have. Maybe its returned to the background buying pattern and as EPG disappointed most long term holders there aren't many followers who are prepared to chase the stock now its back in the 20's. Mexican stand off here at 22c imo. Doesn't mean there isn't some value left in it but it is out of favour and could take a while to shift.
The fact sellers are not in a hurry to drop a cent to meet the buyers and this is a good sign imo. A lot of sellers have jettisoned during the tax loss window. And may the Maoming fund just soaked up alot of the shorter term profit takers around 16c .

The MOU with EDF should sink in eventually, possibly when they announce a firm deal. Market seems to have missed the significance in that EPG have a partner (potentially) to fast track them to the point where they can value add on mine gas from Gazonor. Electricity prices are more stable than gas prices and with the feed in tarriffs they might get a steady 10 euro per gj once converted to electricity and there shouldn't but much seasonal changes in demand. Could double their cash flow without much development on the extraction side .

Can't discount we could see some tree shaking from a fund or something if it sticks here at 22c and if that happens that could present a buy down lower..but I guess the trick is to work out what the 8tcf could be worth if a JV partner can be found to move on with drilling it. Seems to me the power plant plan and 2p reserves at Gazonor underpin the mkt cap ( plus debt )pretty well.