an introduction to european gas ltd, page-39

re: agm presentation Thanks Poyndexter and Wiza; the latter also attended the meeting.

You gave us a lot of interesting and insightful data.

I suppose, posters will look into a possible listing in France and draw conclusions re investment?

Here is the report from Poyndexter again:


"Stol

It was a pretty good and informative meeting imo. Tony McClure gave a generous 45 to 60 min update on company affairs once all voting was completed and took all manner of questions from the floor with good nature.

I have reviewed the AGM announcement and provide a few additional comments and insights:

1. The current sp is considered partial value for only the current 15% study area of the Lorraine Permit without the southern permit extension and without any other EPG permit or asset. The current value of just the 15% study area is unlikely to be realised until completion of the proposed pilot production program by mid (?) next year. Read that smart money is buying at current sp levels.

2. Heritage by any manner of commonsense is a done deal, but by the time they go through regulatory admin procedures dont expect a confirmed outcome till late Jan 2007.

3.Lons le Saunier application is going through final admin approval, having survived the required 90 day advertising period with no other bids received. A US based company (BRGM?) previously drilled this area for coal exploration and concluded the coal couldnt be mined because is was too gassy! This permit area is huge and its prospects are similarly so and would almost certainly require partnering.

4. EPG has had a dream run securing all the current French permits and the Company views that they now have access to the best acreage in France. Of late there has been increased interest from Total of France and another major I cant recall for the moment. EPG expects considerably more competition in securing acreage in Germany in the near and mid future.

5. A European listing (most likely French) in the first quarter of next yr after the Heritage merger is completed. A French listing makes so much more political sense to me and I was really pleased to hear this today. I could never see the sense of an AIM (British) ASX (Australian) axis in trying to operate in notoriously parochial France lol.

6. As previously announced, the French Govt may still contribute up to 30% of Lorraine capex requirements as they see considerable downstream benefits for the locally economically depressed region and as EPG would obviously end up paying something like 30% tax on earnings to the French Govt.

7. All up development and infrastructure costs for an initial 30 well program (with substantial lateral offtakes) in Lorraine could be up to 100 mill euro ... with each well producing for possibly as long as 7 yrs. The total Lorraine permit without the southern extension could support possibly up to 200 similar wells. Because of staged development, the field could produce for 2 to 3 decades.

8 The French are currently building two very large gas fired power station near Marsailles (sp?) and it is possible that a large aging coal fired power station near St Avold (will check on this name later) will be replace with a new gas fired power station.

So given the ASX announcemnt today and the above additional comments I just cant work out why the sp shot over 80c today lol. BUT, to enjoy full benefits from EPG's strong development potential I firmly believe a one to two year investment horizon must be expected.

Cheers
Poyndexter

PS Was good to catch up with hc posters hotnickel, mickeyp and rob and if you were there wiza its a shame we missed".


Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks or metals/commodities.