agm 21st nov questions to be asked

Dear all

I am compiling a list of questions to be put to Tony McClure etc at the AGM on the 21st. I would like to submit these on monday the 17th to the company so they can prepare. However I am sure you will all have other questions to ask that can be added to my list. I do intend to attend in person. Formatting is not the best. Questions with numbers below!



Questions for the AGM 21st November 2008

It appears that greater short term gas sales will allow European Gas to develop faster given the current problems in the capital markets.

1. What are the limitations on the sale of gas to Total Gas and Power, ie why can you not sell them all you can produce?
2. Can this contract be changed in 2010 to supply all you can produce or
3. Can you not have a secondary contract for the surplus production now?
4. Or is this resource constrained production.

Detail of gas sales for the quarter are summarised in the following table.
Sales Average Price Received

M3 MWh GJ €/MWh €/GJ
3,228,160 34,488 124,160 25.72 7.15

5. Gas sales for the quarter were reduced compared to the June quarter 2008 gas sales 59,190 MWh (213,080 GJ)) due to the typical seasonal variations of the summer months where less gas can be injected into the national grid. – Please Explain

Sales and production YTD

Sales M3 GJ Cumulative GJ MWh PerGj Euro Euro
Q12008 400,000.00 400,000.00 111,238.00 5.78€ 2,312,000.00€
Q22008 210,000.00 610,000.00 59,190.00 6.38€ 1,339,800.00€
Q32008 3,228,160.00 124,160.00 734,160.00 34,418.00 7.15€ 887,744.00€
Q42008
734,160.00 204,846.00 6.18€ 4,539,544.00

6. Does this mean that you are proposing to produce 781,819.00 GJ to match your average production for calendar year 2008 ? Or is there another problem ?


Divion &Desiree Site

These sites appear to be shut in at present due to the ongoing dispute described below.

At the Désirée sites the gas is compressed to between 300 and 350 kPag for supply of gas under a sales agreement to local industry

On June 28, 2002, Gazonor entered into a contract with Société Artésienne de Vinyle (“SAV”) for the supply of mine gas to SAV. On April 12, 2007, Gazonor gave notice to SAV of its intent to terminate supply following expiration of the three-month notice period required under the contract, in the event of failure by the parties to agree upon a new rate applicable to the future supply of mine gas.

On July 10, 2007, in light of SAV’s refusal to pay outstanding supply invoices, Gazonor summoned SAV before the Commercial Chamber of the Béthume District Court, demanding payment of €410,288 in unpaid invoices and €100,000 in damages.

7. What other options are there to resell this gas to another party or to generate electricity in the short term?
8. What % of potential production do Divion & Desire sites make up of the whole.
9. Have you thought of producing bulk CNG for sale from these sites?

Comment
This is not expensive from a capital perspective to introduce after all and could bridge the gap between production and actually connection to pipelines from Lorraine as well!. Creates revenue now.

Lorraine

10. What are the Flow rates Lorraine and what are the challenges?
11. Are there any issues with the flow rates and can they be increased
12. Upgrade of Lorraine reserves to P3 –P1 - When
13. What are the dates of the tenement relinquishments by 50%

Gardanne

14. Has Drilling Started yet ?
15. If not when do you expect it to start

Capital Raising

In realising that the current stock price is not as currently favourable as it should be and that EPG requires more money to complete its current drilling programme

16. When do you expect the next capital raising
17. European Float what is the proposed schedule
18. If so where Paris or London?
19. Have you received any takeover offers?


General

20. Why is European Gas not a member of the methane to markets program ?
21. When does European Gas expect obtain CER’s from its methane mitigation from CMM
22. Or gain a pricing advantage via the gaz de recuperation