Excellent news about gazonor. Producing electricity from the gas...

Excellent news about gazonor. Producing electricity from the gas results in greater operating margins with a 33% better margins compared to the devion site which makes up the 80% of gas production.

500 GWhr at operating margin of 14 Euro = 7 million Euro using 50 million cubic metres = 140,000/Mm3
56 GWhr at operating margin of 50 Euro = 2.8 million Euro using 15 million cubic metres = 186,666/Mm3

On a yearly basis this will mean 690,000 Euro or about 1.1 million AUD improvement compared to just selling the gas.

9.8 million Euro cashflow before interest,tax company overheads is not bad considering this is on I believe 3 mine shafts out of 600.

On a per share basis the cashflow is 3.92 euro cents/share on a post note conversion approx 6.5 cents AUD/share.

I believe that Gazonor alone should underpin EPG value let alone the other projects Lorraine, Gardanne, Lons le Saunier, St Etienne and now JV in Belgium looking at the same basin as Gazonor permit.

cheers Icharus