an introduction to european gas ltd, page-46

re: granting of lorraine sud permit

Hello Pixie

The chart has indicated a short term determination to head lower for a few weeks now ... the 80c peak around the AGM never looked sustainable imo. I am pretty sure it will be so until Heritage is decided, by say mid to late January.

Todays sp behaviour in no way reflects the value of the Lorraine Sud extension.

I had a quick look back at announcements over the last year and there isnt a bad one ... there is a strong trendline of rising lows (and periods of exuberance) over that time frame which will continue as event targets are met as per company guidance ... all is calm, controlled and orderly imo.

Expect significant action leading up to the proposed production trials in mid 07 and a significant re-rating when those trials confirm significant 2P reserves, in line with or better than current company guidance imo.

Cheers
Poyndexter