Firstly i am on the sidelines watching RLE which looks very attractive except they are forecasting $3m at 30/6 and it is unclear how much if any of these funds will be used to pay for frac and flow testing equipment costs... The next quarterly will show cash balance forecast as at 30/9...
If they stuff up the frac (eg accidentally frac the coal) then it will be difficult to raise cash.
The release of today's slide deck, just after yesterday's update, is imho a clear signal that managenent are about to act prudently and do a CR - my guess is before the next quarterly is released as the cash balance forecast for 30/9 might be low.
Happy to be proven wrong...
Regardless i will be watching RLE very closely as this looks to be an exciting play.
I will say that management promoting 3C instead of 2C (which their broker reports use as the realistic bankable reserve ie 2P) is a bit rich.
Adl
RLE Price at posting:
9.5¢ Sentiment: Buy Disclosure: Not Held
