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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: kollmhn who wrote (183013)	3/13/2014 8:32:45 AM
From: Ed Ajootian	Read Replies (1) of 206184

kol, American Eagle (AMZG) -- My first reaction to the equity raise was negative, but maybe its not such a bad thing to avoid getting over-levered given the current uncertainties about the oil price. Not sure on pricing of the deal but I hope that they are going to take a little bit of time to do a little road show to get their story out. Not many of the institutions are aware of the story, or if they do they likely have misconceptions about the prospectivity of Divide County, either of which could be resolved by seeing an AMZG presentation. My best guess is that they will close it a few days before they close the acquisition of additional production and acreage in Divide County, that must close on or before 3/31 since that is when their option to acquire that acreage expires. When they did the last equity raise in January they had to take a pretty healthy haircut to the trading price of the stock to get it priced, about 15% if memory serves. Now they have a solid reserve report supporting a price well north of the current quote, let's see if that helps any on the pricing of this offering.

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