under the radar?

I suspect EPG is flying under the radar at the moment ... much has changed.

Completion of the Folschviller 2 test well in progressing well ... with commited funds ... given the tightness of funds, I can only assume management have a decent level of technical confidence of a good o/a result from Folschviller.

The simple fact that desorbtion pressure was reached in the upper seam with nominal dewatering and gas flowed into the well is good news. Well pressure was then increased to avoid further desorption so that the pump test could be single phase ie water only for seam permeablity assessment. Subsequent gas flow tests were carried out and reported as "encouraging" and even that laterals w/o stimulation might be economic ... I am guessing they are sitting on relevant data until testing of the lower seam is complete.

I think there is real interest in the lower seam/lateral ... I think the packer isoloating the the two seams has now been removed and the pump has been (or is being) reset deep enough to begin permeability testing of the lower seam ... probably an announcement within 2-4 weeks if all is on track I suspect.

Encouraging (or better) results would be a great outcome ... it is well known in CBM circles that the "technical keys" to producing CBM in every new gas province takes time (sigh, and money)... just look at any successful CBM plays back in Australia ... ESG and MEL being two good, current examples ... to get positive results in the first decent well test program would be well received and would create interest in EPG imo.

Like I said, given funding constraints at present, the revamped technical team and Board must be pretty confident of an outcome to be spending significant funds on completing Folschviller 2, especially as they could aim for modest incremental cash flow increases by tweaking Gasonor with the same funds.

On Gasonor, I have a gut feeling that electricity production (ie increased gas production at a premium income for being a "coal mine methane gas abatement" measure) will get the nod ... it is just plain economic good sense.

I follow CBM pretty closely in Australia and there is no doubt the technical expertise being developed by the likes of STO, BG, AOE, BOW, ESG and MEL and the supporting domestic drilling expertise puts Australia a strong second to the US globally in CBM exploration/development imo ... possibly even surpassing the US on some technical issues.

You could say the exploration phase here in Australia is consolidating/maturing ... if so, expect that technical and entreprenerial (sp?) talent to be looking for new exploration frontiers ... Europe being a very obvious destination imo ... a few of the above companies are already dabbling in CBM in Europe and so any encouraging results from EPG at Folschviller will be "noticed" ... and the two good strengths EPG has are sizeable prospective exploration permits and already being a producer in Europe. I feel the chance of a quality (Australian) joint venture partner(ing) on some of the EPG projects is shortening.

Finally, none of the above makes much sense unless there is a good outcome on the Transcor convertible notes (TCN) ... solid ongoing commitment to Folschviller and Gasonor would indicate to me the TCN will be favourably resolved ... hopefully sooner than later.

EPG certainly isn't for the faint hearted at present ... but as always the premium for even modest success is significant imo.


Cheers
Dex