Hello,
Yes, it's absolutely possible to run EPESI that is accessible only through LAN connections and the server itself doesn't require internet connection either to function properly.
There are few limitations this way thou:
First of all, you can't install EPESI using simple install script. You have to download the whole package, unzip it and start the installation that way. It shouldn't really be much more troublesome than the simple install script and the version installed from package is exactly the same as the one from simple install, so it's just a minor inconvenience at best.
More importantly thou, you won't be able to register your EPESI installation and this also means you won't be able to use EPESI Store to purchase new modules and download updates. You could possibly setup an empty installation with access to the internet, register that installation and download modules through it, then manually move those modules to your working LAN installation, but please remember that using Commercial modules downloaded under single License Key on more than one installation is a breach of agreement and may result in termination of that License Key.
Hope this helps,
Arek