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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: stock talk who wrote (49205)	8/11/1999 1:42:00 PM
From: Harold S.	Read Replies (1) \| Respond to of 95453

What is going on with OIL?!!!!!! Exploding in the last 10 minutes!!

To: stock talk who wrote (49205)	8/12/1999 2:41:00 AM
From: Don Earl	Read Replies (2) \| Respond to of 95453

Hi Frank, How's tricks? I have a large position in EGEO also. A lot of things make it more than a little interesting in the way of speculating. The company was spun off from Seitel a few years back with SEI holding a 17% interest in the company. On about June 10th Seitel issued all their shares of Eagle as a dividend to their shareholders and on June 14th Eagle announced the engagement of CIBC World Markets "to serve as its financial advisor in connection with a potential restructuring and recapitalization of the Company". In their July 15th announce of their exercising the 60 day grace period on their senior notes, they included this little tidbit: "It is Eagle's policy, absent unusual circumstances, not to comment publicly on discussions concerning proposals that may be considered or transactions that may be pending." It might be interesting to note that their senior notes include a poison pill of sorts that makes 101% of the face value of the notes due in the event of a change in ownership of the company. It's also interesting that at the end of Q1 they had $6 million in cash and have since raised an additional $4 million in working capital through additional financing, but are still exercising the grace period on the $5 million interest payment. Puts an interesting twist on what they mean by "restructuring" the notes. My guess is that if there were a merger in the works there would be a serious conflict of interest if Seitel were to find themselves holding a sizable block of stock in a competing company. Not to mention how it would look to their shareholders. Book value on EGEO is $9.83. Even discounting "good will" it's still over $7. In a stock swap with someone like PGO, TDW or VTS the company's assets could be acquired with a few million shares and almost no money up front. Just take over payments on the assets. The seismic sector has been slower to bounce back than the rest of the oil services sector due to cost cutting measures. In order to get margins back up, some consolidation is going to have to take place to get some of the smaller companies out of the bidding process. IMO EGEO is a buyout just waiting to happen. The grace period on the notes runs out in about a month, so my guess is there should be something on the table within the next few weeks. Could be looking at a potential 6-10 bagger if it goes down the way I'm reading it. We'll see. Regards, Don