WITH AUT (Aurora) announcing its reserve position today it's...

WITH AUT (Aurora) announcing its reserve position today it's possible to make comparisons and draw conclusions.

AUT m/cap $300m
reserves 138.0 Bcf (3p) NPV $986b

I've used AUT's 3p as it's a better reflection for that asset. Note also AUT sell condensate as well hence a higher NPV.

RFE m/cap $79m
reserves ???? 3p??? NPV???

You fill in the blanks. Reserves will be way higher and it's not hard to get an NPV close to AUT.


I summarise by saying that there are currently no brokers in Australia who understand RFE properly let alone have any research. Hartley's used to and ceased. Chess used to but no longer do (although they still have some ties with RFE)
With no broker coverage there are no new players coming to the story. Hence the price.
Brokers will return if RFE upgrade reserves materially. Would be good if someone like Patersons picked up the story. If the numbers are good I will speak to some people I know in Perth. My persuasion will be - Get the stock price back over $1.00. Raise $20m. Use the money to drill 500 wells. Patersons will be all over it like a rash and the price may well get to $2.50 before RFE even start the tender process.

I am happy to take criticism if my assessment proves wrong.