re-rating q1 : good time to invest - argonaut

Argonaut securities in todays Morning Note included a section on RFE

"Red Fork (RFE) – Q1 Re-Rating
Red Fork (RFE) has >75,000 acres (net), targetting the Mississippian Lime play in Kansas and Oklahoma. It has completed 8 horizontal wells to date, with results from 6 reported. On average, these wells are performing well above the estimated type curve and regional results continue to improve as the play becomes better understood.

Additionally, the Company has three rigs active in the play with 8 wells across 4 development areas at various stages of drilling or completion. We expect results from 5-7 of these prior to the end of February.
To put the Company’s phase of lifecycle into context, Aurora Oil and Gas started its largest re-rating when it had reported results from 15-20 wells at its Sugarkane field in the Eagle Ford Shale. By the end of the quarter RFE will be at a similar stage, albeit that the plays are different, as are the metrics.
For those that are prepared to back the Company to achieve similar results as have already been accomplished, now is a good time to invest, prior to a potential wave of increased institutional buying based on actual results. We do not cover RFE so have no recommendation or price target."