market rewards european gas explorers

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Market rewards European gas explorers

Steve Rotherham
Friday, March 10, 2006

SOME overseas operating juniors saw significant shifts in their share prices this week, with Europe-focused Carpathian Resources and European gas Limited leading the way.



Po Valley drilling in Italy

Following news that independent analysis had boosted gas reserves at its Czech Republic Janovice field by 250%, Carpathian's share price rocketed by +66.7% for the week (up +57.1% for the month). CPN closed at 11 cents yesterday.

European Gas saw its share price continue its climb of recent weeks, closing yesterday at 71 cents, up 40.6% for the week and 111.9% for the month.

Following a query from the ASX when the rise began last month, the France and Italy-focused coal seam methane explorer said it knew nothing. But it could be that European Gas and Carpathian are benefiting from increased awareness of Europe's need for gas, if Po Valley Energy managing director Michael Masterman is to be believed.

The recent Russia-Ukraine gas pipeline dispute cut Russian gas supplies to Europe and emphasised the benefit of indigenous reserves for energy security, Masterman says.

"The sudden withdrawal of this supply, albeit only for a few weeks, brought home the fact that much of Europe has an energy security problem," he told EnergyReview.net.

Po Valley Energy actually saw its share price drop this week, but this was probably profit taking for the most part. PVE closed at $1.46 yesterday, down 7.6% for the week but up a tidy 28.1% for the month.

Could it be that with EPG share price being less than half of PVE's, some of European Gas' recent investors are people looking to get in early with the next Po Valley Energy?

Or perhaps they are coal seam methane enthusiasts. The CSM sector has seen a lot of activity lately and one of the week's big movers was Planet Gas, an explorer with acreage in Wyoming, USA. PGS was unable to explain the 31% surge in its share price this week (up 72.7% for the month), which saw it close at 38 cents yesterday.

Another US-focused CSM junior, Odyssey Energy, also had some big jumps in share price in the last few weeks, which it also was unable to explain. Some light was shed on the situation this week when ODY announced it had taken an extra 15% in Marion Energy's North Helper Gas Project in Utah.

On February 21, the ASX issued a query to Odyssey after the stock rose 29% from 34c to a high of 44c in less than a week. The ASX queried a story published in the West Australian newspaper, in which Odyssey was named as about to acquire an interest in another US gas project.

Responding to the ASX query, ODY said it was unaware of any information that would have caused the share price change.

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