any agm comments from anyone else, page-15

Mr/Mrs/Ms/Sir/Madam H Wit

Tony McClure talked a bit about this at the AGM and I have been a long time shareholder, so here is my explanation ... the US is the world leader in CBM ... and has been so for at least a decade, with CBM making up 10% of domestic gas sales ... ie its big business, with some specialist CBM plays having market capitalizations in excess of US$ 3 to 5 Billion for reserves similar to the EPG GiP estimate for the current Lorraine study area ... growth opportunities within the US have been so staggering over the past decade that there was no need or capacity for overseas expansion.

Australia is about 5 years behind the US and probably the next most experienced CBM country in the world (anyone is welcome to step in and break my rose coloured glasses at any stage here if necessary) and many Aussie companies have strong relationships within the US CBM industry and technology providers (Tony McClure is a director of PGS operating and producing CBM in the US).

Aussie companies have been active at home , in the US, Europe, India and China increasingly over that past 5 yrs ... when Enron collapsed there was little to no interest in CBM assets in Europe ... A cash Heritage (with a geologist named Alan Flavelle as a Director) picked up all those Enron CBM assets for a song ... Alan Flavelle just happened to be the geologist for cash strapped Kimberly Oil (KBO) here in Australia.

By a quirk of fate/opportunity, one of those cash strapped companies prevailed and morphed into EPG and now has a 75% interest in those early Enron assets and a few more now ... so it was with little hesitation that most EPG shareholders voted option packages for the current board at the AGM this week ... they have done a great job so far.

Larger companies are now taking a stronger interest in Europe and EPG doesnt expect as easy a run to obtain acreage in Germany in the period ahead as they previously enjoyed in France and to some degree Italy.

Well, that line sits well with me anyway.

Cheers
Poyndexter