For from my reading earlier posts and the Annual Report, it seems that "The transfer of ownership of Gazonor to Transcor" referred to the rights to produce CMM and not the rights to explore for and produce CBM.
That first dot point in EPG's announcement ought to have stated "The transfer of ownership of Gazonor's CMM production to Transcor" and could even have added for yet more clarity, "but not the rights to explore for and produce CBM".
My misinterpretation and confusion does highlight the need for EPG in their public announcement to have clearly distinguished between the rights to produce CMM and the rights to explore for and to produce CBM.
Presumably this distinction means that the holder of the rights to produce CMM is not entitled to drill coal seams from within mines for the purpose of extracting methane. Its purpose presumably is to prevent entry to the mines which had been closed because the coals in many were so gassy as to pose too high a risk to permit mining. Such drilling would constitute the extraction of CBM! It suggests that there`might be regulations whih specify how close to mines a CBM explorer can site drill holes... or perhaps no limits at all as long as mine workings are not intersected!
I wonder how many other shareholders were similarly misled and confused by EPG's lack of clarity in the announcement of its deal with Transcor.
Regards, Fairgopat
EPG Price at posting:
45.0¢ Sentiment: None Disclosure: Held
