Eagle Energy Inc T.EGL.UN

Poor deals

[Sjakkspill]

Just look at how the company has been mismanaged since selling the Permian asset in August of 2014. After that there was no debt, approximately $2 a share in cash plus the Hardeman and Salt Flat properties which were worth perhaps $3 to $4 a share. Then the problems started by purchasing Dixonville for $100 million, taking on debt and adding to G&A expenses. Then came the Twining deal in an uncertain market at a high price given that a similar deal was made in the area shortly after for half the price Eagle paid. Then came the stock dilution Maple Leaf deal which added little value. Makes you wonder if the boys aren't lining their pockets under the table. The only way out is to sell assets by voting Blue. During the conference call Mr. Gundersen stated that an offer $48 million was made last year for Dixonville. This offer was basically ignored by current management. It was only half of what they paid but, given the market downturn and how difficult it is for juniors to obtain financing, it would have solved all their problems. Never to late to do the right thing even though the market is depressed. Things might get better but then they also might not for some time or even get worse in which case the company is done. It looks to me like the best price might be obtained by selling the US assets which look to be able to fetch a price that would eliminate the debt and leave a fair chunk of change to invest in Canadian assets without taking on debt. I'll leave that up to the new management as it looks like they know what they are doing unlike the present one. Vote blue.