epg valuation compared to other csg cos., page-6

BEFORE THE GAZANOR acquisition, I assumed that 10% of the 1000PJ at Lorraine was available as 2P (very conservative conservation also considering Lorraine could have up to 6000Pj). I then capitalised EPG at the OZ valuation of 2P reserves (ignoring the x3 prices in Europe, albeit with higher gas prices). I think I came up with a value of around 6-7 dollars. Might need to repeat that now with current market rates and current shares on issue. However that was prior to Gazanor - which is worth the current market cap in itself. Several others came to equally exciting valuations by different but equally conservative assumptions about turning estimated resources into reserves. The other thing to remember is that despite have so much ground and just starting out, it it nearly producing an operating profit, which is amazing. Also means less dilution further down the track.

Might have to do my sums again on the weekend.