Once I bought an US CBM company that got money from a loan shark. At the beginning the Company had some success. They picked up assets in the US and even in Europe. They started to produce some CBM and to sell gas, they started to generate some money. They drilled a dry hole and the loan shark wanted his money back. So this little tiny CBM Company (and I had some hope: interesting assets, already producing gas and generating cash flow and people working for that company you assume they understand this CBM business) crashed because they had to sell shares to give back the money to the loan shark. I kept the worthless shares as a warning for myself and therefore I was sceptic with EPG especially because I still do not understand the strategy of this Belgium Baron.
With CBM companies drilling in Australia I am less sceptic. The reason is the coal reservoirs are world class in Australia.(I learned that already as a pupil at school when I had geography lessons at the age of 14 or so) World class coal mines with CH4 and when you can get rid of the produced water it means world class CBM production and companies. In Europe often the carbon is a formation found deeper than for example in Australia. And a big problem in Europe in my opinion is: it`s difficult and expensive to get rid of the produced water. You`ll need a clever solution for that problem as for example an empty reservoir to inject it there for
just some thoughts
EPG Price at posting:
17.5¢ Sentiment: None Disclosure: Not Held
