This continues to be sold down - without doubt(100K sell at 71c at close) - clearly because it has failed to convince the market it is capable of developing or maximising the potential of its acreage in the time frames it has nominated, if at all - despite what anyone says. The company is entirely at fault as it has not only fallen short of its own articulated strategy but it has missed by miles and miles.
If the coy makes money we make money. Expenditures in the last quarter are not unexpected and should decrease given the targetted purpose. Revenue may well be flat in the June 1/4 due to decreasing price recieved - so where is the millions of new revenue going to come from - without new production wells.
As a poster states this is not unusual in the Oil Gas game to miss targets - but RFE has grossly missed - grossly over promised and grossly under delivered. I'm very impressed how they were able to remotely compare RFE to BHP in this regard.
Each quarter it is debated that next 1/4 is the one and invariably when these numbers arrive they disappoint to the down side. Last 1/4s numbers whilst showing and increase were dreadful when you consider they included new revenue from Coronado and should have included new revenue ex Tulsa. Ah yes - the production/revenue lag effect - sigh.
Wobbly - the EOK wells spudded as announced today are 2 of the 3 already announced on the 13/04/10. They aren't new ones at all. Their announcements are tricky - very.
Soredawg - reworking wells is fair enough if there is a production kick - but there hasn't been - production has decreased monthly since aquisition. Happy to debate each point in the so called "Top 20 holders" list as I actual hold very different views. I don't argue that reworking the EOK stuff is not a good idea but my arguement is that this has not what the company has announced as its only priority all along - it has maintained both before and after purchasing Coronado assets that it was to drill like a mad thing - and it hasn't. On this basis many people got set.
140 production wells by the end of this 1/4 - LOL.
12 million annualised revenue by this 1/4 - even bigger LOL.
It doesn't particularly matter what Prentice does - he just draws the fat salary for administering the coy - what really matters now is what the USA subsidiary/Gilstrap and Co. get up to. It is there where the nuts and bolts are.
I'm not impatient - but certainly expect a coy to do what it says it will - that is fair and reasonable. This coy has not remotely done so and when I look sideways I believe I am well justified in my concerns. The Top 20 has not been tight despite what some assert - noting there will always be a Top 20 with 20 names in it. Very long term down trend now and looking now to break down further. That speaks volumes.
Heaven forbid RFE drills a duster!
Looking good for this time next year though.
All IMO and DYOR
RFE Price at posting:
71.0¢ Sentiment: Hold Disclosure: Held
