RFE Red Fork Energy

[donnie]

Red fork looks like a good little energy company lets see how it goes over the next year or so, its at 28c now.



The Company is focused on building significant gas-in-place reserves in its Cherokee Basin CSM project and is well placed to fast-track its CSM drilling program.
During the Quarter the Company commenced the roll-out of its CSM exploration program, with the Redfork #2-29 and the Redfork #4-29 spudded. These wells reached a total depth of 1,441 feet, intersecting their targets zones with the Dawson, Iron Post and Crowburg coals encountered with a thickness of two to four feet for each coal. Importantly, this is consistent with other producing CSM wells in this field. In addition, the Redfork #4-29 Well intersected an Oswego Limestone zone that had Electric Log Values similar to other wells in this field that have produced gas from this interval.
Production casing has now been run and cemented on both wells and they are currently shut in awaiting completion.
These wells are the first of four wells to be drilled in this initial campaign. The Company anticipates that these four wells will be drilled completed and tied-in to production infrastructure during the September 2006 Quarter. Further results including initial flow rates will be released as they become available during the quarter.
This four well sub-program is the first of the drilling programs planned for 2006 which we expect to include up to a total 10 new CSM wells.
RFE 4TH QTR ACTIVITIES REPORT
2
DEVELOPMENT ACTIVITIES
Development activity continued during the quarter, with the focus on the Company’s fifteen (15) existing wells to access open zones and “behind pipe” oil and gas. Production infrastructure is now in place and the Company has commenced selling gas though the Scissortail Energy sales line. The Company has received initial gross proceeds from oil and gas sales of approximately A$300,000.
The re-work program (to access “behind pipe” zones) commenced during the quarter, with the first program targeting the Bass #90-1, Osage #86-1 and the Church #88-1 wells. This program was successfully completed and the next program, targeting the CC East #4-A, CC East #2-A, Broken Drum #1-C and Demier #2-G wells is expected to be completed during the September quarter.
PROJECT OVERVIEW
The commencement of drilling is an important step in the Company’s strategy to fully evaluate and develop its Cherokee Basin CSM play. To achieve our goal of establishing a significant gas-in-place reserve we have focused on the following key objectives.
Secure strategic lease holdings and development permits.
The Company has now acquired a 100% ownership (80% Net Revenue Interest) of Oil, Gas and CSM leases covering 4,200 acres in the Cherokee Basin. Drilling permits have been prepared and filed with the Bureau of Indian Affairs and the Osage Nation Agency. The first of these permits have now been approved and the Company expects to have a total of fifteen (15) permitted drilling locations available in the second half of 2006.
Establish production infrastructure and cash flow.
Development activity to date has focused on the Company’s fifteen (15) existing wells to access open zones and “behind pipe” oil and gas. Production infrastructure is now in place and the Company has commenced selling gas and some oil. Gas is sold via the Company’s agreement with Scissortail Energy. Revenue generated from this modest initial production will assist in the funding of the Company’s planned exploration and development activity.
Commence exploration and development activities.
CSM drilling has now commenced. Data collected from this drilling activity, together with information available from our own and our neighbors’ development and production activities will be gathered and evaluated to establish the projects gas-in-place reserve potential. Independent consultant petroleum engineers will be engaged to provide an estimate. The Company expects to have this assessment completed by the end of the March quarter 2007.
Fully developed lease holding.
The Company’s strategy

[Footsie]

Phaedrus

Would appreciate your thoughts TA wise on this stock.

It's had a bit of a pull back from its high which has cut the very steep uptrend. BUT OBV still looks good.

maybe its just consolidating after a massive run?

[Phaedrus]

RFE has gone off the boil a little, Footsie. In fact, it began firing Sell signals nearly a week ago when the trendline break gave an exit at $1.41. The OBV had already broken its trendline, but did this by crabbing sideways rather than actually falling. Notice how the OBV has been flat over the last 6 weeks even though the price continued to rise. Those accumulating RFE are being balanced by those distributing it.

The 19 day Exponential Moving Average shown here was tracking this stock particularly well and it has now been broken. RSI and DMI have also triggered Sell signals. Note, though, that the 3 indicators at the top of the chart have not yet triggered Sell signals, though all are very close.

The 20% Trailing Stop is still well below current price action and in the event of this slide continuing would be the last to fire. They are not called trailing stops for nothing!

[Footsie]

for someone who likes the stock fundamentally and wants and entry. What would you suggest they wait for?

I mean this could just be a consolidation phase... much like what ETC/nbs went through.

[MrDevine]

Footsie you and me both. RFE just brought to my attention. Agree with Phaedrus that now is not the time to buy, but to be watched closely on the watchlist. I like the low market cap, and small number of shares on issue (115m). It's run very hard over the past 2 months, and due a breather.

Up at the open today.

Mr D watching.

[Footsie]

anyone know what this purchase might be?

whatever it is will probably set the new trend for RFE for the coming months.

[Footsie]

Come in spinner.... that's why FA works

I'll be looking for new highs in the not too distant future after that announcement.


Giddy UP!

[Crypto Crude]

I wouldnt say im rip roaring excited about this companies prospects...
had a quick look at it before...
I Will have to shore up abit more research to post...

.^sc

[Footsie]

its come off quite a bit, but looks to be forming a base around the 1.15 mark.

The have some significant value in their land holdings and will be producing from two projects by year end

[Crypto Crude]

Footsie,
Im not so confident about this company...
I gave a huge write up on HC yesterday and RFE is falling...
I will put some numbers up hopefully in a few days to support my case...
just like what ive been saying about AZZ and GDN...
not a good region to invest...

.^sc