The Energy Report (USA), reported today on stand out oil and gas...

The Energy Report (USA), reported today on stand out oil and gas companies from Australia, courtesy of an interview with E.L. & C. Baillieu Stockbroking Ltd.

It is a free public web site and report.

"The ones that stand out to us at the moment are companies like Red Fork Energy Ltd. Red Fork has about 75,000 net acres in the Mississippi limestone play in Oklahoma. It has been getting some good results from its early wells there. We think the stock is very undervalued relative to the size and quality of the land positions it has. The next 12–18 months will be exciting because it has a lot of wells going in and production will be ramping up. If they get a reasonable run of drilling success, their share price will be significantly higher than it is now."

"Red Fork is up in the Mississippi limestone area in Oklahoma. That's a real hotspot, and the last time I looked, there were 240 drill rigs running in the area. Red Fork is run by some very experienced oil guys out of Tulsa. It's had a couple of wells on pump so far and has been getting some nice oil flows, and is about to crank that up. Red Fork has a very big land position. It will be getting a big following from the States as its production cranks up, going to somewhere between 10–12 wells this year. Toward the end of the year, I wouldn't be surprised if its production was getting close to 2 Mbpd."

(Question from The Energy Report) "Does that hold up or does it taper off relatively quickly?"

"Because it has so much acreage, it will just keep drilling. I think it will eventually have more than 300 well locations that it can drill there. It will certainly be able to grow its production by just steadily increasing the footprint there. Its neighbors are getting 30-day initial production rates around 350–550 bpd on pretty low-risk wells. If it can string together a whole bunch of those, we think it will then be seen as a serious company. At the moment, Australians see Red Fork as purely speculative and they haven't really bought the story yet." (Americans will).

Gw

My formula for success? ... " Rise early. Work late. Strike oil. "
J.Paul Getty (1892-1976)