ST, are Europa going to be producing 6000 bopde or 1000 bopde by or in 2007
because on squaregains company profile it says 6000 bopde by 2007.

If this is correct, and spot prices average around 70 dollars, we are looking at some serious turnover for a company valued at only 15 million, 82.5 million pounds rounded off and exchanged to pounds at 1.85 exchange rate.

Even if we only achieve 1000 bopde the revenue at just under 14 million pounds
is nearly equal the current market cap.

What will this do to the shares and also our warrants if this is achieved?

The Annual report comes out in September, i reckon we will be up to at least the 1000 bopde mark by that date.

I am also thinking about buying some more warrants, but will wait until annual report. If they then become too dear i won't buy, but i will be in a win, win situation.

ST, good comment but i believe we shouldn't use 4 dollar gas prices as the only reason gas prices are low now is because we are in a hot summer, in england they go up to 12 dollars + in winter, and Romanian winters are even colder than ours with snow guaranteed from December to April. People use more gas in Romania because their summers are not as warm as ours.

this should add another 1.5 million pounds to your figure, roughly.
Your figures are better than mine though, i forgot about the 28% share thing.


Do't take my figures as dead certs... i just calculated the gas spot price and multiplied it by the gas flow rates at bilca and then calculated 1000+ barrels of oil
and the figures were very close, i think that's why they say boepd and they do take into account the change in gas prices during the year as they used 6 dollars
which is low because of the summer.

You also used a lower dollar price than me, i used the spot 1.85 which adds another mill... or so on top.

Lets see what they say at the Annual Results, we will get a lot of info then and can
work things out more clearly.

Thanks for your feedback, Barclay.

One or two clarifications: I used gas price of $4.30 because that was the average price quoted in the 2005 Interims released on April 18th 2006.

I quote: "Currently, Romanian domestic gas production is sold at a 20% discount to the previous year's import price resulting in a 2006 price of $4.30 per thousand
cubic feet (mcf). There are strong signals that the 20% discount will reduce
substantially with Romanian entry into the European Union in 2007 resulting in
an improved gas price."

Thus the domestic gas price equals 80% of the average price of imported gas for the previous calendar year. The figure of $4.30 for gas sold in the Romanian market is therefore a fixed quantity and won't change until the next calendar year.

Given recent international gas prices, the domestic price for 2007 should be higher yet - probably near $6, even allowing for the fact that the EU entry thing may not take effect until later.

I have to confess that having read it again I now understand better how the prices are set, but the point is that Romanian domestic gas prices are set according to a system of external/international and historical factors and not necessarily by on-the-spot demand.

I did indeed use a lower dollar price - intentionally because it produces a more conservative outlook. I take the attitude that if even the more conservative outlook is positive, you're onto a winner.


We shall see what comes of all of this - with the higher gas prices achieved in 2006 it augurs well for the 2007 full year results, which hopefuly means I'll be able to shoot those warrants out of the door at a decent price just before they expire :o)

Up a bit today - no news apparently but it's good anyway.

EOG Bid: 28p Offer: 29.5p Change: 3.25

Why have the warrants gone down instead of following the share price rise or staying at 5p bid?