I think it is a fabulous deal for EPG. Remember that Gazonor was...

I think it is a fabulous deal for EPG. Remember that Gazonor was purchased for EUR26m. The company is reselling the asset at a considerable premium to this price. By my calculation debt + interest is about EUR40m meaning the asset is sold for about EUR35m. On top of this we keep the CBM upside as well increased production in Poissonniere and Desiree. We lose the asset but it is sold at a full price and we keep the upside potential (like a call option), the positive is that dilution is very small. In addition Transcor has 20m option meaning it is ready to invest an other 10m in EPG which is very positive, I didn t know they already had 5.8m shares, I wonder when they bought those shares.

This changes completely the profile of the company. We are now totally debt free and can finally trade in line with comparable according to our reserves as opposed to trade at a discount because of the debt issue. I expect management to announce a fund raising pretty soon. Ideally as you mention the company finds a strategic investor to develop its assets now that we are debt free.