agm how did it go ?, page-7

Icharus,
Your post accurately reflects my impressions of the AGM including why McClure attended.
The convertable notes issue is the first thing the dirctors need to sort out and it is quite an overhang on the SP. Currently the cap of EPG is around $43mil and the value of the notes is $56mil (i.e. 35mil euro)- clearly out of the money. The options to the note holder include asking for their money back which could result in administration and possible privatisation or renegotiate the value of the conversion with a possible extension of time. We were assured by the 2 directors present (particularly Hempell) that the note holder wanted to keep the company publicly listed. If there is a conversion I would expect that it would be negotiated closer to the prevailing market price. This would clearly lead to considerable dilution. There is a mooted capital raising coming up and in my view it will be difficult to get it away unless there is clarity on the convertable notes issue.
The question was also asked that given the european bias to future shareholding, funding and directorship, would the company continue to be domiciled in Australia. The meeting was told that any such change had not been considered. It might be something shareholders might consider in their assesment of the company.
On the positive side, I spent a bit of time talking to Rod Bresnehan and felt confident to where he was taking the company. Icharus has mentioned the potential of turning monitoring wells at Gazonor into production wells and the restarting of activity at Folchviller with possible permiability data of the upper seam late Nov/ early Dec on the upper seam and flow data next year.
The company is also proceeding with investigating the viability of electricity production at Gazonor to properly utilise the low quality gas production which at times is unsaleable. My view is that this is a worthwhile exercise and result in some additional income at modest cost.

P