information

I sent the following email to RFE management today as I have become increasingly concerned at the infrequency of information and the uncertainty that it creates.

Dear David

As a long-term shareholder of RFE, I have become increasingly concerned about the spartan news flow from the company. When there is news, particularly with the monthly updates, it appears perfunctory and lacking in detail.

Retail shareholders are hearing more of the company operations and plans via third party broker reports than we are from the RFE management. To my way of thinking this is not right. Similarly shareholders are relying on access to information and research provided by other holders, which may or may not accurately represent the state of the company. Retail holders individually do not have the same research capabilities and access to management as perhaps brokers and fund managers and we therefore rely on regular and frequent updates from the company to keep us informed. While RFE announcements arrive regularly every month, the frequency of information to my way of thinking is a concern. I believe a schedule of fortnightly announcements would better represent the increased activity of the company and would perhaps reduce the amount of speculative noise that tends to fill the information void created by the company.

Broker reports are uniformly optimistic in their assessment of RFE’s development plan and all see value in the projected increase in oil production as a result of the company’s strategy. We also have a situation where 4 or 5 large institutions have steadily been increasing their holdings in RFE at a significantly higher share price than we see today, while another organisation has taken a contrary short position. It would seem that the company shorting RFE either has gonads of steel to be betting against the combined institutional house, or they are blessed with prescient awareness. Presuming that this is not the case, retail investors can only assume that there is a side to the RFE story they are not seeing.

There are clearly many factors that influence share price and perceived worth of a company, from company fundamentals and prospects, to the ephemeral and transitory nature of sentiment. While some of these factors are beyond the control of the company, I believe that the frequent provision of information is not, and that every effort should be made to keep ordinary shareholders well informed.

I have no doubt that RFE adheres to the mandatory reporting and disclosure requirements of the ASX, but I firmly believe that the interests of all current and future shareholders and the company itself, would be better served by a more frequent schedule of fortnightly announcements. With the ramp up of Mississippian activity this year, I believe the current rate of monthly updates does not do justice to the achievements being made by the company.

I trust you will give this your consideration.

Regards