In Sept last year, RFE came out with their June 30 reserve report. IP reserves were 14M Boe with a NPV of $196M. Since then they have drilled several wells and should have a significant increase.
Today AOK came out with thier reserve report. It was 13.9M Boe and had a NPV of $217M. Very similar. The concerning thing was that while the 1P BOE had increased by 85%, the NPV had only increased by 10%! Now this may be an issue unique to AOK. Perhaps they were too generous with the numbers last time. Perhaps the wells are produsing more gas / less oil with time. Don't really know for sure.
However, if a similar scenario befell RFE, it would explain why they had to terminate their RBL and alot of other things.
I'm seriously not trying to take cheap shots or down ramp this stock. I have nothing to gain. But RFE is cactus if their reserve report has been hit by the ugly stick.
Add to My Watchlist
What is My Watchlist?