Ray14, there are two major considerations that you need to...

Ray14, there are two major considerations that you need to incorporate into your valuation.

- Scaling of 1P NPV10 doesn't quite work like that. There is a crude oil price where NPV = 0. Not sure where that is for RFE but with servicing of debt, it might be around $50-$60 / barrel of oil

- RFE carries $US100M in debt and is in breach of loan covenants (with permission of bank).

Right now things look pretty bad, especially if you believe that oil prices will stay down. So this is very high risk.

However, if oil returns to $85-$90 / barrel and levels out, then RFE might have a 1P NPV10 of $US200M. And assuming, RFE can re-finance debt and add some working capital, then we may see a resulting market cap of around $100M = $0.20 / share.

In reality if RFE can get through this period, I think there will need to be some cap raising activity and a large dilution.