I suggest everyone read AUT latest quarterly to understand why the share price got hammered. Probably nothing to do with MD getting paid so much.
AUT's production is 25,000 boepd making 582 million in revenue for the year. Basically, RFE's production figures per well are not high and it appears the seller on Friday agrees. If they can lift the production per well to more than this, it will be worth a lot more.
So far, the 250 boe per well is simply not producing enough to make a difference and the spend to get there makes it too onerous on cash burn. Anyone care to argue this point?
If they can get the superlaterals pumping out 700 boe then we have a new ball game. Until then, we will all keep suffering. We should hear something on this by end of Jan. The buyers on Friday are ready to take a punt it looks like.
RFE Price at posting:
22.0¢ Sentiment: None Disclosure: Held
