spp, page-27

hi equator

"we now know what more than 5% means" yep, 18% once fully diluted, awesome.
noticed in the latest top 100 that the number of shares held in HSBC accounts was actually 14.42 million shares higher from previous figures, so there was roughly 1.34 million shares purchased on market as well, perhaps the $15 million to be invested isnt the end of it or there were a few insiders who have bought as well.

forgot to mention in my top100 update post that Louis Ghirardello bought another 238k as well, as you say equator, top20 will get stronger and stronger.

Pencilin, noticed you mentioned Macquarie next, with 2.5 million shares at the moment no form is required, unless they get about another 10.5 million shares in Tranche 2. Possible.

Citicorp have managed to stay just off the radar, their holdings increased by 2.9 million shares and has kept them about .45% under a substantial holders note.
remembering Citicorp is a subsidiary to one of the big 4 US banks, it certainly looks like US investors are buying in here, all good for RFE, they can see the value, and they wont be looking to roll over shares for a 10-15cent profit per share, more like 10-15 times their investment!

guys, thought would talk about possible news coming up in the next week or so.

3D siesmic must be very close, although we did have a week or 2 of poor weather, so possibly 2 weeks to go here.
this will signal the opportunity for the team in the US to get our best targets identified and to also apply for the drilling permit, once this is completed, we drill, the really exciting part, wont be too long now.

when we have the 3D info and applications in to drill we will also possibly increase our acreage via the spacing and pooling method the county of Oklahoma employs, or probably what RFE wants is for one of the big boys in the area to hand over some drilling cash, Sandridge, Chesapeake or Devon Energy.

news of a majority JV with one of these guys would be huge.

other news but directly about RFE but very important to them is the 2 deals happening at the moment, the completion of both is not far away.

this will give us an idea of what US investors and O&G companies are intially willing to pay, the Sandridge deal is valued at about $12000/acre.
while these deals are in Alfalfa county, the "find" county, RFE will only need to drill 4 or 5 wells in this play with similar EURs and think of our value then.

finally, in the Baillieus initial coverage it was mentioned that RFE in their opinion have a enterprise value of 97cps over 350 million shares.

why is the number of shares that high??
been thinking about it, RFE once fully diluted will be around 260 million shares, what are the extra 90 million shares for, a possible future raising?? but why??

the only thing i can think of is that the 48k acre target, upon similar EURs mentioned on moving in to this play, would make additional acres a distinct possibility and a priority, perhaps as many as 100k acres, who knows, any ideas??

in an M&A situations the more acres the better!!