Good morning forkers. See below an extract revised Hartleys...

Good morning forkers.
See below an extract revised Hartleys Research Note targeting a share price of $1.91 in the next 6 months.
This combined with Chess Capital Partners 12 month target of $4.30 authenticates where this thing is headed......
The price manipulation will surely stop soon....


Red Fork Energy Ltd (RFE) - Continued Success at West Tulsa - Buy
Hartleys Research - Perth
RFE.asx
Recommendation:Buy

What happened?
Red Fork has announced that it has completed its sixth
production well at its 100% owned Pawnee prospect
located in West Tulsa. Each well can have initial
production of 70-90 barrels of oil per day, stabilising at
20-30 barrels of oil per day. The Company has
identified 20 well locations on this prospect, each with
potential for multiple pay zones. Production from West
Tulsa, prior to this well, was ~100 barrels of oil per day
from 5 wells.

What does it mean?
Red Fork has ramped up activity at all of its projects in
the USA and we expect a steady increase in production
as drilling and tie-in continues. The Company is
targeting production of 4 million cubic feet of gas per
day and 200 barrels of oil per day by mid 2010.
We also expect that Red Fork will be able to book a
significant increase in 2P reserves in April this year due
to the acquisition of 80 wells at East Oklahoma South
and also continued successful drilling at West Tulsa,
East Oklahoma Central and East Oklahoma North. We
estimate that this could be 20-30 billion cubic feet of
gas equivalent or a 30-40% increase on the current
72.8 billion cubic feet of gas equivalent.
Hartleys Initial View
Red Fork has experienced significant price volatility
recently; however, we remain confident in our medium
to long term view of the large resource potential of the
Company. Shale gas remains prospective for
investment, even though there has been price
weakness due to oversupply. This prospectivity is
evidenced by the recent acquisition of XTO Energy by
ExxonMobil for US$41b.
We expect that Red Fork will continue to increase
production and reserves over the next few years from
its shallow biogenic shale gas discovery in the
Woodford Shale. In our opinion, the risk of failure in the
shale is low, due to success to date and in-house
expertise. It is likely that there will be additional learning along the way; however, Red Forks dominant position in the play could yield outstanding returns based on the historical performance of companies that have been
first movers in shale gas discoveries in the US.
We rate Red Fork Energy as a Buy with a price target
of 190cps.

13 Jan 2010
Share Price: $0.995
6mth Price Target: $1.91

Brief Business Description:
Oil and gas producer located onshore USA.
Hartleys Brief Investment Conclusion
Huge potential resource from shale gas
discovery at East Oklahoma.

Management:
Michael Fry (Chairman)
David Prentice (Managing Director)
Top Shareholders:
Mr Robert Healy (18.1%)
Mr Luigi Ghirardello (13.5%)
Prospect Custodian Ltd (9.9%)

A more detailed note will follow shortly.

Dave Wall
Oil and Gas Analyst
Hartleys Ltd
AFSL 230052
Level 6, 141 St Georges Terrace.
PERTH WA 6000
T: +618 9268 2826
F: +618 9268 2870
E: [email protected]