Eagle Energy Inc T.EGL.UN

RE:G&A over $3 boe is outrageous.

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G&A is way too high and is partly explained by having a CEO and a COO to manage a company of that size which is totally unacceptable. One should have the skills to do both. As the company grows production (if they are successful), they will brag about that reduced G&A/boe figure but, it will still be higher than peers and you can rest assured that the overall amount will have climbed. And oh yes, you can bet that a myriad of options, RSU's and others will be issued at the current low price or even lower.

Now, they are taking on even more fixed costs with this debt. The yearly cost of their roughly $60 million in debt was around $2.6 million. Now, we are looking at $7.4 million on their $82 million that has been drawn.So they need an extra $5 million in cash flow just to cover the extra interest. That is an extra $4/boe of current production.

With their secured loan, the lender has effectively bought the company for $82 million and receiving 9%+ a year interest and are simply waiting for these guys to hang themselves. There are many covenants per this new loan and after bitcing about Canadian banks, who do you think is going to come to their rescue if/when they trigger any of them?

The only way to prevent a disaster, is to take control of this company. It has good assets, good netbacks, low decline rate and could make good money for its existing shareholders if managed prudently. There is an AGM coming up and we need to gather enough people to replace the board.

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