rfe nucular, page-3

hi MTN. I'd direct you to the numerous Research reports on RFE's website. They'll give you a better overview than I ever could.

http://www.redforkenergy.com.au/page.aspx?pageId=923569b2-10e3-4d55-86f4-8cbfffa908bc

Renegade has answered a couple of your questions. I would note that the research reports are now 'out of date' given recent discoveries and the tripling of expected flowrates at East Oklahoma. Hartleys has revenues in 2011 of around 115 million (currently just over 1 million) - this is prior to the tripling of anticipated flowrates) We're looking at possible revenue 300 times current levels within two years. The Chess Securities has Redfork's value at 2.7 billion based on similar corporate activity in the region - on the East Oklahoma results only. RFE currently valued at 30 million. I quote

'In August 2008, Chesapeake Energy Corporation (NYSE:CHK) sold its interests (~90,000net acres) in the Woodford Shale producing 50 million cubic feet natural gas per day to BP for $1.75 billion in Cash. Source: www.bp.com
Whilst this was a thermal gas play (as opposed to a biogenic gas play), similarities exist between the gas qualities of RFE and CHK. We note that the price paid in the transactionamounted to a multiple of US$35/Mcfd. On this multiple the potential value of RFE sits
at $2.7 billion. This Note is based on the East Oklahoma Project announcement only.'

The have leased over 2 million acres in East Oklahoma and have barely scratched the surface.

Focus on consolidation is on Qld/NSW area with a lot of recent activity/takeovers. RFE operates solely in U.S. and has been completely overlooked. I have no doubt that in two years I won't hold shares in RFE. They'll be taken over. If not, they'll be a profitable mid/major player in their own right. Just over 100 million shares on issue and little likelihood of any future dilution. This is an absolute corker. Wouldn't like to project into the future as I have absolutely no idea. The best I can do is buy at these ridiculous levels comfortable that the economics add up to a share price much higher than present.

Spend a day on the RFE research page. If you're going to put in some hard earned it's the least you can do to satisfy yourself. Been frustrating watching this get sold down in the general malaise but in some respects, glad it has. 30c is (Red) Forking steal.