Hey Davo,I bought into EPG at the end of June.Something of an...

Hey Davo,

I bought into EPG at the end of June.Something of an opportunistic buy after I figured several exiting funds had thrown the baby out with the bathwater.

Since then I've been trying to find out more about the coal sequences in Northern france and figure out why EPG have struggled to get anywhere. Unfortunately there is not alot of info in the public domain beyond the sledging (of management) we see a bit of on HC and the company reports which are short on answers it has to be said.

Perhaps the Z' meister might like to illuminate us as he seems to know a bit about the gas quality etc and seems keen to educate in riddles.

So from my basic understanding, it seems EPG have thick enough coal seams to target but the completion techniques and well design needs to be refined. the previous program did boast they had shown they could drill horizontally only to then run out of money.

I plan to hold on to see what the revisited testing of the Foslchville well delivers. Could be some strong updside if the testing results are positive. I'm guessing they wouldn't be going back to that program if they didn't have reason to think they can bring commercial amounts of gas to the surface. They could have for example simply focused on the mine gas from Gozonor and worked toward the generator proposal as a means to show investors they still have 'some' forward momentum.

I also think the link with EDF is a big plus for them and a multiple small generator plan is a good one. the prospect for permitting and or stakeholders issues to confound these small power projects should be lessened with EDF's subsidiary involved.

Perhaps we will be hearing some positive news by early next year about the power plants and that should provide a back stop in the event this round of drilling is not a huge success.

The moaming fund buying is puzzling given it normally invests in china as I understnad it, so for them to buy into a csg company in France , they must see something that isn't blindingly obvious to us!

No idea what patersons are doing. i noted they had a buy on it in March and a target of something like 80c and then suddenly that went to hold and 13c in may! Considering the variance I'm not putting much stock in their analysis on this one and instead sticking to the old wait and see approach.


Cheers

hendrous


hendrous