got slammed, page-8

Thanks for the summaries. Anyway you slice it, its undervalued.

Here's another way to slice it...just repeating what I've done previously. Take QGC's capitalisation per 3p Reserves (.76 million/PJ).
Divide EPG initial 3P reserved by 2 (recoverable).
Multiply:
.76 x 460 = 357.58 million
Around half the market cap today.

If you take the whole permit (6000pj reported by Enron) and assumed 30% recoverable (assuming they are drilling the best first).
.76 x 1800 = 1368 million


I like using QGC 3P values as it incorporates an assessment of costs and returns by the markets. Obviously, QGC are a lot further along the production road and costs are probably higher in Europe. However, I think not accounting for the huge price differential offsets more than enough given the early stage at which EPG is.

I think the above estimates are very conservative medium term estimates (one year). Remember, this doesn't include EPG's other permits either.

Just thought add my little take on things. For the record, I have done similar calculations to those above but came to a value of around $6/share. So I think this and the previous estimates are pretty conservative.