another takeover offer, page-6

hi holders, some great posts coming through, great to see, keep it up.

Art, you mentioned the 1/10/09 report and reserves not being increased etc, 3 of our most recent drilling sites have been very interesting. An EOK North well is all of a sudden being tested, we had an announcement about an EOK South well being drilled, obviously not part of the next 20 wells to come on line here and the West Tulsa drill announcement regarding the increase in size of the RED FORK sands but also possibly additional sands to explore.

All this really in the last month or 2, there is UNDOUBTEDLY an reserve increase being worked on. Last year an increase was announced on 1/9/09, i wouldnt be surprised at all to see something in the next 4 weeks.

Hopefully with the number of wells drilled in the last 12 months this will not only increase our reserves but the certainty IE 1P reserves??

which leads me into what you mentioned Joewolf.
you spoke to someone who would be more informed on the subject ( always good to hear what industry experts say ) and they said the drilling was required to not only gain a cash flow but to increase the size and certainty of the discovery in the future.
well i am no industry expert but i am glad management have been working on drilling rather than upgrades in reserves until now.

we needed to show the market that we were drilling and hopefully going to meet drill targets, this has been one of managements promises and imho a reserve upgrade has been well left alone until now.

i would rather get 1 upgrade a year that has alot of " bang for your buck" than 1 every 4 or 6 months, dont think they would have had the same impact as leaving it until now.

Sharechaos, an interesting development, no prices mentioned yet, once they have discussed with there JV suppose we will see the $ involved.

you have listed several good points about the AZZ land in the Eagleford shale prospect, compared to RFE. they drill deep and expensively but have higher flow rates. be interesting to see how it plays out, could be a preview of an RFE offer.

rich1612, why havnt we received an offer yet?
well going on most of the other shale gas plays, it seems like the Woodford shale doest quite have the flow rates of other finds but is significantly shallower.

our recent drilling will all be used for the reserve upgrade, when potential takeover bidders see the upgrades and the certainty of return, factored in with RFE being not far away from being cash positive, it will then be a matter of time.

nazzysmith, some interesting pricing per share and also current evaluations on RFE acres held. Are you saying $2 a share takeover on a land value of $2000/acre, is that enough or is it to high?? personally looking for $2+.

rabiez, reckon the 500k seller has finally got smart and started breaking up the order, might not act as such a blocking order now. will probably take a bit of time to climb back into the mid 60s, although what do i know, predicted possible 70c target until mr 500k turned up and ruined that.

copperpot, sorry answering on another thread title, but i am with you, was happy with the 1/4ly and progress being made.
as mentioned before, i also agree the reserve upgrade is imminent, and yes we are seriously undervalued, perhaps investors dont know by how much until this upgrade is released, perhaps then that tagert of $1.50 is a chance.

GO RFE