Ann: Re-financing Partner Selected, page-62

Consider: banks / financiers lend on proved reserves (and at present - proved developed reserves), typically 60-70% of the NPV (based off current forward strip).

This was US$153.4 mill at US$101 oil. At US82 it is circa 100-120m .......so at 70% of that - a new financier will be willing to lend 84mill or so. Banks / financiers do not take "price risk" ...so RFE will be "encouraged" to hedge forward production to ensure cashflow is available to service any replacement debt......

So it should be obvious that there is an (equity) capital requirement of circa 30-35m .........(100 - 84, plus net payables).....

the "best" answer for RFE's long-suffereing shareholders would be a merger with another listed ASX oiler (that has a balance sheet that is able to carry the debt load, plus forward capital commitments of RFE).

the other answer - will be an extremley highly dilute cap-raise so the company actually survives.

if you are buying this stock - you do need to understand the risks. Given management has had circa 18-months to do something abt this - and chosen not to .....this is my definition of "brave" .....