As a reminder, the French government in autumn 2017 issued a new regulation (“Loi Hulot”) to stop the issuance of new exploration permits in France.

We went to LFDE’s meeting with the company’s lawyer Raphaël Chantelot, a partner at the law firm LPA-CGR, who presented its views on the impact.

On the positive side, the production of coal mine methane (the gas from the former coal mining galleries, aka CMM) is exempted from the restrictions.

Moreover, there are some exceptions that should protect the coalbed methane business which LFDE is developing in Eastern France.

These include the possibility to prolong the duration of existing exploration permits (“PER”) and to extend the scope of concessions.

Our valuation integrates the regulatory risk.