epg and its asx peers

I have just read a research paper from my broker comparing a range of ASX list coal bed methane companies. For obvious reasons I wont name the broker or copy the research note, but I do have a few comments to make in relation to EPG:

If you have a view that EPG has reserves potential in Europe in the same ball park as QGC here in Australia and are prepared to invest at least for the medium term, then EPG looks to be a solid opportunity imo.

You'd have to have been closely following EPG's development to have this medium term view because the info isn't widely available or appreciated ... imo, this increases the chance that the market has it wrong with EPG at the moment.

Imo, the broker completely misses that EPG is currently producing with Gazonor and has 33PJ of 1P reserves (representing A$150mill to $170 mill future profits based on the last Quarterly, and imo likely to at least triple based on planned Gazonor reserves expansion).

The 395PJ of 2P (quoted by the broker) must relate to desorbable gas at Gazonor and the 1185PJ of 3P (quoted by the broker) must relate to initial GiP at Lorraine and Gardanne ... I had always thought GiP was something less than 3P ... there is a lot more 3P where that came from imo.

Based on the table, investment in EPG should be a reasonable investment proposition for many imo. But the figures in the table do not reflect that EPG has been de-risked considerably with the Gazonor production deal ... certainly more than the market is currently reflecting imo.

Cheers
Dex