revenue up 62%, page-35

Regarding concerns that RFE will not be able to self fund its aggressive drilling campaign from already tied in oil/gas sales, I'd like to refer to an excellent post from ShareChaos.

"As a top 20 holder I have been reading these posts for some time and finally feel compelled to write

Whilst David could perhaps be criticized for being a little tardy on keeping the market informed and bringing on new institutional support. I think he is the man for the job and this will be his make or break year.

Some points shareholders need to be aware of:
1) RFE is a much different beast from this time last year and in the 2nd half of 09, the company bit off quite a lot to chew. They need to be given time to get the ball rolling.
2) The team has been focusing on improving efficiency of the wells before they start ramping up. This has taken some time
3) This quarter revenue will be up from additional wells at West Tulsa coming on line.
4)June quarter will start to see EOK south wells coming on stream
4) David has said he will have 140 wells tied into production by end of FY10. Therefore, he will be judged on that statement.
5) David is well aware there have been some delays to the original plan, but sees that with the new acquisition the delays have been worthwhile and the efficiencies from production as well as the additional wells have fast tracked the project by up to 2 years. So waiting another 3 months will prove worth it.
6) 2010 will see another significant uplift in reserves.

Just be patient. Wait until after June this year then make your judgment. RFE have a first class asset. Gas prices have recovered and its just a case of tieing in the existing wells and starting the new drill program which will see EOK host to 800+ wells in a few years."

This is the exact reason RFE has been busy working on East Oak South in improving production wells and tieing in pre-production wells, because its cheaper then drilling, and you can't be too aggressive and do both due to cash flow/burn. This will effectively increase our sales revenue enormously and allow us to aggressively drill, as we are starting to see now.


Soredawg