What amazing buying opportunity yesterday was. At 60 cents you...

What amazing buying opportunity yesterday was. At 60 cents you can value EPG on just the Gazonor purchase alone.

Gazonor had over 25 years produced 75PJ or an average 3PJ/year. In the last year this has declined to 1.4 but we are talking about a company that had effectively no leadership or ambition to produce gas. This will change now that EPG owns the company.

Assuming 3PJ/year production (3,000,000 GJ/year) and a price of 8 Euro/GJ, exchange rate of 60cents/Euro

Revenue is 40 million AUD

Costs have been 3.60/GJ but will decline as production ramps up. The Avion site has a production cost of 2.8/GJ due to the larger flow rates there.

Costs of 3.6/GJ comes out at 18 million AUD

A 22 million operating profit on 250 million shares (assuming conversion of notes) is 8.8 cents/share.

For a utility style company that is cheap add also the upside of the other permits and it represents exceptional value

cheers Icharus