EPG 0.00% 41.0¢ european gas limited

reading between the lines ... possibly

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    "... a series of natural gas producing assets ..."

    "... to assist in financing ... of the assests ..."

    " ... (the finance) will also assist in providing for ongoing working capital and for the company's existing projects."

    " ... the group will not subscribe unless (EPG) proceeds to acquire the assets"

    There is no other way to interpret this than the 'substantial European group WANTS EPG to produce gas ... the group will not subscribe unless the assets are acquired.

    Coal bed methane is sometime referred to to as natural gas, no I am assuming the "assets" are for EPG to produce coal bed methane at Lorraine. That the funds will "assist" in financing the assests means the assets may be of a cost that requires additional debt or lease finance? So, the funding may preserve substantial monies for existing projects, such as early rollout of the initial 30 well Lorraine program?

    I doubt that "natural gas" refers to conventional hydrocarbon gas that I recall may have been mentioned for Lons le Saunier ... we were told at the last AGM that the project was too big for EPG and that partnering was required to investigate and develop.

    A "series of natural gas producing assets" (this pretty much rules out distribution assets) could include EPG's own drilling rig plus pumps for seam dewatering and compressors (and other eqipment) to ready the gas for pipeline distribution.

    There is no real reason for EPG not to own a drill rig considering current scarcity and that upwards of 30 to 40 km of vertical drilling and about 60km of horizontal drilling will be required in an initial 30 well production program (and could be double with a further 30m wells). An experienced crew can always be flown in from the States where drilling and completion technologies were first developed and the industry is maturing. Such relationships are possible as Planet Gas (of which McLure is a Director) has been drilling for some time in the States.

    Well, thats all I thought I could read between the lines. Any other views?

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