Valuation:Considering the likelihood of EPG achieving its...

Valuation:

Considering the likelihood of EPG achieving its exploration and
development goals, MPS Research has valued the Company at A$133m or
[b]A$0.91ps fully diluted. [/b]This valuation considers the recovery of only 20% of
EPG’s GIP estimate and does not incorporate any value for all the other CBM/CMM projects in Europe.




Investment Research
KEY POINTS
Granted permits covering 3,921km2 in France and Italy. A further
4,268km2 under application. Each area highly prospective for CBM.
Attributable high confidence gas-in-place resource of 743BCF.
Nearby substantial pipeline infrastructure and a large advanced
market to facilitate development of EPG’s permits.
Appraised value of A$133m or A$0.91ps fully diluted.
Growing gas demand from European Union members to support
higher gas prices in the foreseeable future.
Gas prices in Europe are currently £5.90 per MCF (or A$13.95)
versus A$2.00 to A$3.00 per MCF in Australia.
Australian exploration assets.
CBM/CMM projects in Europe.
European Gas Limited (EPG)