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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Bruce L who wrote (31371)	4/5/2004 4:05:07 PM
From: excardog	Respond to of 206358

I sold my FXEN a few months ago at $4.5. I'm probably not the one to ask about them.<g>

To: Bruce L who wrote (31371)	4/5/2004 5:08:12 PM
From: Condor	Respond to of 206358

FXEN Ask this fellow. He called it dead on and still follows it closely I believe. Message 19507289 Cheers C

To: Bruce L who wrote (31371)	4/5/2004 5:23:33 PM
From: Ed Ajootian	Respond to of 206358

Bruce, FXEN -- I'm more positive about this company than I've ever been and bought some more stock today. This offering is a logical consequence of their recent decision to part ways with Cal Energy and drill the next well on 2D seismic vs. getting a 3D survey done first. As we all know, 2D is not as reliable as 3D so if you are gonna go on 2D you prefer to do this with more $$$$ on hand so as to be able to withstand more dry holes. But the bottom line is that the company does not have to complete the stock offering it proposed this morning, and alternatively could decide to complete it but offer a lower # of shares than announced today. What puts them in the drivers seat is that they don't _need to raise cash right now. They can raise cash if they decide to, but all of '04 planned operations can still take place without another penny of equity being raised. I'm sure company management had a "walk-away price" already in mind before they even pulled the trigger on releasing today's PR. I would guess that today's close is south of such price. You never know however, and maybe they would still do the deal at this price. I would imagine that a European road show is planned for the coming weeks, and once that occurs management will look at where the stock price is at that time and make its decision as to what to do. In the meantime I expect in the next few weeks to see an announcement of a planned spud date of the next well, plus an announcement of a webcast of their presentation at the IPAA show on 4/19-21. It will be interesting to see how this all plays out. IMO there are two ways to play this one at this time. One is to try to guess where the bottom will be, before the announcement of the closing of the offering, and buy at that point. The other would be to wait for it to close, resign yourself to the fact that you will more than likely be paying up for the privilege of having waited for the offering to get completed, but at that point you will have a lot less risk as to where the bottom will be. Its most unlikely that the stock will go much below the offering price after the completion of the offering, especially given that they are close to spudding a coupla new wells. Thanks to the folks that answered my question on rig counts.