avinteresting post - thanks for thisThere are another couple of...

av
interesting post - thanks for this

There are another couple of ways of looking at EPG's value:-

1) Market Cap Model
Take the known 400 PJ of 2P reserves at Gazonor, and add another 600 PJ of 2P for all the other holdings (ridiculously conservative).
This gives 1000 PJ of 2P reserves.
At $3.14m per PJ, IGV is = $3140 mill.
Current MCap is = $186 mill
A potential for at least a 16x increase in current SP.

2) Future Earnings Model
Current gas production/sales = 1.4 PJ at Gazonor
(this is just the small volume that is coming from an existing well).
Allow for a 10x increase in future production (again, ridiculously conservative)
In 2 years, production = 14 PJ pa.
Current gas price = 7 euro/GJ ($12/GJ)
Current Production costs = 50% sales price
Future earnings = $6m x 14 = $84mill
EPS = 34 cps
For a p/e of 10, SP = $3.40