get forked energy, page-3

gday Shrewd
While not following RFE closely and with no intention of holding....

I agree their needs to be plenty of cash found gowing forward and that decline rates are very significant with shale plays....

I however disagree that cash backing is important (provided they have enough to grow without significant dilution) if a company is investing their revenue and growing production and reserves...too much cash is more often than not a reflection of a companys inability to find quality projects....

As for Us gas prices, drilling has more than halved and the majority of new production has come from shale which has massive decline rates, so spot prices should increase gowing forward as supply fails to meet demand...also the futures prices jumping forward slightly are all US$6+ so that provides a good oportunity to lock in good prices regardless......

Successful shale plays provide massive long life reserves when compared to the conventional reserves that generally are found by small asx listed companys...

I would be significantly happier to invest in US gas as opposed to Aussie companys where a massive glut of domestic gas is potentially on its way from CSM, which as yet does not have infrastructure to convert to LNG...The reason many ASX US oil and gas explorers are continually wasting shareholder funds is due to the fact they are chasing high risk wildcat exploration wells with a low chance of success and in most cases the risk is not justified by the reward unless you are playing with other peoples money...like wall street bankers, if they made huge money they were rewarded by massive bonuses and if they failed no skin of their nose!!...Shale plays are generally uneconomic at current prices but it would appear that RFEs leases are quite economic even at current prices due to shallow depths and good flow rates...

So while not in a hurry to buy I think you are probably being a bit tough on RFE
Cheers