if i read correctly in one of the EPG reports, the current price...

if i read correctly in one of the EPG reports, the current price acheived per GJ was about 7 EUR. AOE have a cost per GJ in QLD of about 0.46 AUD (expected to drop further when lean manufacturing is full implemented). To be conservative, if we assume drilling costs are 4 times what they are in OZ , that would put well costs at ~0.92EUR which is still a fantastic margin compared to the netbacks AOE currently get in OZ.

I think most downside risks are already priced into the sp. The 2 key risks for me at the moment are:

1.Liabilities from the court case if unsuccessful in their appeal. They state however that they have clauses in the purchase contract that would entitle them to claim costs from seller.
2. Outstanding convertible notes exercise rights

If AOE were to get involved in EPG however, i think they have 2 options:

1. Full cash takeover (more likely because this will allow Shell to buy 50%)
2. A deal similar to FEEC where they take a small equity stake and large JV stake

I sure hope AOE are looking, otherwise EPG will be in limbo for quite a while. No money to drill and cost of court case could eat all their cash. Good luck to all...i will keep accumulating while it's still under 20c