strategic update, page-5

The below is Argonaut Oct 28th report..

We have covered off the transaction analysis above; however, there remains a case for
investment even if the transaction does not occur. Our valuation for the Company at
$0.92 (with no transaction factored in) remains significantly above the current share
price of $0.49. Results from new wells at Northern Star and Southern Star (extension
area) may also provide downside protection in the scenario where a transaction does
not occur (there are currently no reasons why the transaction would not occur, in our
view and we believe that other buyers are waiting in the wings). The fact that the
Company continues to deploy capital (with near term 6 wells) also provides comfort that
there is confidence of successful outcomes. We continue to rate AZZ as a BUY with a
price target of $0.69.