epg undervalued according to uk aim market?, page-14

Dex - FUT have an ex JP Morgan resources guy on their board and have done their homework on EPG's Gardanne - LT they believe the following factors were enough to go ahead with the HoA with EPG - from their release to ASX - IMO I believe they got a cheap deal with 70% interest and that EPG needed to show a JV partner (as pointed out by Zadig. I'm only at a Minerals 101 level but with winter coming and Spot prices at the bottom of the cycle it has the potential to be a very good play and at 0.05c (FUT SP) it's cheap leverage into an EPG asset.

. Gas in Place estimates at Gardanne stand at 105 Petajoules (99.1 billion cubic feet).
· Gardanne prospect is located close to a major alumina refinery, coal fired power plant and 8.5km
from the major industrial area of Vitrolles potentially providing a ready market.
· The Gardanne initial target well offsets an area currently under application by British Gas subsidiary
Queensland Gas Company.
· First Gardanne appraisal drilling program expected to commence in February/March 2010.
· European forward gas prices for 2010 and 2011 are trading at €4.70Gj (A$8.0) and €6.10Gj (A$10.30),
substantially above the east coast Australian price of approximately $A3.50Gj, providing FUT with
excellent fundamentals in Gas pricing.