new project on the 2009 agenda, page-15

RFE recently announced a nice reserve upgrade BUT it did virtually nothing for the shares in either volume or price.

Announcement was great but market is broke/dumb/unaware/fcussedelsewhere for now.

I'm not sure about others' expectation, but I am not expecting the price to "rocket" on announcement of certitied reserve. What I am looking fwd to is a certified number to (1) confirm my own assumed numbers (2) be used as bankable asset for further funding with CBA if required.

RFE does look appealing, as does AMU (as pointed out by someone else a while back). One obvious difference between STX and RFE that jumped at me was the type of their gas reserve - which is made up of CSG, conventional gas and oil. Most of this is still in ground, undeveloped reserve, and will require many wells to be fully extracted. As I have mentioned here several times, it's the margin and the high rate of return as well as high cashflow that makes Rayburn so attractive to me. Right now, I'm not interested in the "buy us now for potential and we'll deiver later" type of company - such as MAE - which has consistently over-promised and under-delivered.

I suspect it is for the reason I mentioned above (high rate of return, reserve proven by current production, and high margin) that Hartley has rated STX as a BUY as opposed to their recommendation for RFE as a SPEC BUY. RFE may well deliver on their potential and become a 5 to 10 bagger, but that won't happen in a hurry unless they can crystalise the value of their undeveloped reserve by other means (such as asset sale, farmin partnership, etc).

Just my views of course, which is based on some quick reading of their recent announcements. Not a rec to buy, sell or hold. DYOR etc!

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