Just reading through some old reports and articles on EPG and saw that in the initial martin place research paper, the peer group was trading at a market cap of approx $0.77 per 1000 cubic feet.
Now I understand it to be cf in place (not the % recoverable), but even if we apply the 50% recoverability that management expects, you are talking an insitu valuation of $1.90 per share. Assume the full GIP and you get $3.80 per share.
Then assume that the GIP will be upgraded (and I am only talking at Lorraine - not even Lorraine Sud, nor St Etienne, nor Gardanne, nor the tenements in Italy, nor Lons le Saunier.... you get the drift) ONLY Lorraine (68km2). The company has been highlighting that the average drilling results have been 27% better than the model giving 0.99tcf GIP. Assume this and the insitu value is suddenly $4.85 per share.
On top of all this, the peer group highlighted is AUSTRALIA based. EPG benefits from gas prices nearly 5 times higher than those in Oz.
No wonder the 0.5M+ buyers are lurking atm! I am ready for the next leg in this story. Those that bought at $1.19 will soon be in the money.
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