afr article today

Good to see some coverage in the AFR by Jake Mitchell on RFE, and although nothing new to us, could be to others.

"Last year Oklahoma-focused Red Fork Energy moved from explorer to a producer and developer. The company claims to be on the verge of major growth in oil production and reserves.

Red Fork operates in the Mississippi Lime, an oil region that is likened to some of the best liquids- rich regions, such as the Eagle Ford in Texas and the Bakken in North Dakota. Mississippi benefits, however, from cheaper well costs because the oil lies shallower than typical tight oil, requiring less sophicated drilling and fracking equipment.

The company is targeting a sharp increase in production over the next four years, from about 1450 barrels of oil equivalent a day to more than 11000 boe a day by the end of 2016.

Managing director David Prentice says the focus this year has been on improving productivity, cutting times between drilling horizontal wells and, importantly for cash flow, reducing times between starting to drill a well and getting revenues from it. He reckons Red Fork will be cash flow positive by mid-2014.

Red Fork in March secured a $US65million credit facility which will help fund an aggressive drilling program targeting 38 wells this financial year, and rising to 56 next year. Reserves surged 49 per cent in the six months to end-December to 9.6million boe on a proven, probable and possible basis. Prentice is flagging another sizable jump at the end of June. Red Fork's acreage is in the oil-prone area, east of the Nemaha Ridge, where production has been surging.

New York Stock Exchange-listed Devon Energy is investing $US1.2billion in its Mississippi Lime acreage this year, with 15 rigs running."