Eagle Energy Inc T.EGL.UN

RE:From TD review of EGL.UN, issued yestreday

[RichardBoodrow]

"In our view, given the flat production profile, the company's heavy reliance on the DRIP should be perceived negatively as it results in the dilution of production per share. "

This statement by the TD review complements Richard Clark's statement in the latest financials.

"We are examining how to best optimize our assets to lower our sustaining capital. Once we achieve that goal, we intend to reduce or terminate our distribution reinvestment plans, which we believe are contributing to the pressure on our unit price. The DRIP and Premium DRIP™ have provided low cost financing for our capital program, but if the unit price remains low for a long period of time, they become less attractive."

What troubles me is that by reducing or eliminating the drip program which makes sense also means that the business module of Eagle must change. As of now Eagle has not revealed what they plan to do to compensate for the drip program which creates uncertainty which could be toxic to such an investment company. I hope Eagle addresses this as soon as possible,