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I actually think it is good that RLE are funded through to flow rates. The biggest worry for me was run out of cash before they get into production. Where you make the good profits is in the buying not the selling and given the weakness in SP I think this is the time you can make good profit if you are prepared to take a 3 month view.

RLE has a large gas resource and I think they have a reasonable chance to get their project in production. They are one of about 4 emerging east coast gas developers that have a shot at getting their project in production in the next few years. The others being Strike Energy, Comet Ridge and Galilee Energy.

I have followed these companies for some time - in my opinion I rate RLE and COI as the most likely to get in production. Where it get really interesting in the market caps of these companies.
Company
Code
Mkt Cap M$ GALILEE ENERGY LIMITED
GLL
120
STRIKE ENERGY
STX
120
COMET RIDGE LIMITED
COI
250
REAL ENERGY CORPORATION
RLE
22.5
Out of all the companies RLE is lowest mkt cap by a country mile and in my opinion has the opportunity to rerate the most if their frac is successful. The potential reward is large and the risk is low as the SP has already take a hit. I think it is good buying now.