whats going on, page-6

Guys,

I have just started to look at EPG so please correct me if get any of this wrong.

Is the current funding (via convertible notes) related only to future asset purchases? Has anyone been able to establish the identity of the "European group" who purchased (or will purchase) these notes?

As per their last quarterly they have $1.7mill in the bank and expect to spend $500k next quarter. Can they use funds provided by the convertible notes for the development of existing assets? It looks like 2008 is going to be a busy year if they can get access to rigs. Also the three laterals from a mother bore is a good idea (of course depending on the characteristics of the reservoir) however will be expensive. If they have to find cash elsewhere we could be in for a further raising earlier next year.

I couldn’t find any measured perm data from the current exploration program. Does anyone know if the data has been released?

Looks like they have positioned themselves well in a growing market.

My three major concerns are

• the lack of production data (to be expected given the early stages of the projects)

• Permeability. The measured gas contents aren't amazing however similar to those of QLD (I think). Some good signs with other formations (limestone/sst) around the seams showing production potential, which suggests some permeability. Also read somewhere that the regional geology in one of there permits may be advantageous to perm. Again similar to some of the QLD CBM assets

• Environmental issues and potential issues with gaining land access. I would appreciate if anyone has information on this.

I would appreciate any answers of feedback on my comments. Got to get back to work, I’ll see what else I can find later on.

Cheers

otaw