debt agreement?, page-2

Thought long and hard about whether to post this as it could be perceived as very negative.

It doesn't matter the particular company the article is about (its on Red Fork Energy who operate in the Miss Lime), what matters in understanding Debt and the relation is has with 1P Reserves and how much is PDP and how much is PUD.

I believe there is enough data re NSE to make the comparison - we have the CG&A Reserves report, the company's type curve and EUR and the production from existing wells.


With that in mind read
http://seekingalpha.com/article/2104133-red-flags-at-red-fork


Not saying the author is right or wrong in his assessment of RFE, but he does give a good review of the relationship of debt use and what can happen if well production does not deliver upon expectations.


I prefer my eyes wide open. I read a lot of articles and felt there was something of use in this one.