cosy company/broker relationships

Eagle Bay Resources announced today that Patersons had placed 12,720,000 EBR shares at 11 cents to sophisticated investors (read privileged clients).

Having got wind of this earlier in the week I asked Patterson's Melbourne office for details. Never seen anyone duck for cover so quickly. Will ring you back the local manager said, "after I talk to my legal people."

"Who told you he asked" and "how did you get my number" . To which I replied your colleague Simon in the next office gave it to me!!!

Maybe they don't communicate too well at Petersons.

Well I then spoke to the management at Eagle Bay Resources, who sort of said it was up to Patersons to come to them with a deal and "no, any shares they issued would defintiely not participate in the forthcoming rights issue" Yeah right. Nice response. Check the news release.

So Patersons thought they could get their clients into a "buy early sell before spud" deal a little cheaper than the market place was then offering. The shares had been as high as 13 cents though they closed today at 11 cents.

I supppose that much is a positive at least and
nothing untoward in all of this I suppose, apart from some disinformation from both the people contacted.

The one thing that is absolutely essential in dealing with the junior oilers or junior companies of any persuasion, is the quality of the management. I'll be having a few words to say about my impressions of the quality of Eagle Bay Resources management in this week's JOW. Strangely I am not impressed.

The value of these chat rooms is keeping the bastards honest, so the more stories like this people can relate the better.