In relation to RLE's justified vertical share price action one must draw comparisons to Strike Energy (STX).(next door neighbour)
RLE have a contained resource of 600mcf
STX has a resource of over 11000mcf.
Meaning that STX have nearly 20 times the gas resource and with the well testing more advanced and a cash kitty of over $7m,STX are indeed ideally positioned.
Yes STX market cap is $70m.
RLE is $25m.
STX value is only 3 times the market cap of that of RLE for a resource that's way more advanced and 20 times larger.
STX also has a lot more cash and no need for tin rattling any time soon..
STX is also better positioned logistically with the Cooper basin pipeline running directly through their resource and at a location which is only 20km from processing at Moomba...
One to watch for sure and no doubt the share price action will lift off..
Market is generally slow to act so take the opportunity when it comes
