BRK - Brookside Energy

Re: RFE - Red Fork Energy

wobblyboots said:

harvestar, unfortunately RFE not upgraded to ASX300 YET.

waiting for CQO takeover to be finalised. they are currently in the ASX100 and have a few loose ends to tidy up before they are removed from the index. probably looking at around the middle of April before we can hope to be upgraded.

probably a very good reason for the complete drop off in volume.

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Thanks for the update mate. Yeah I've noticed the massive drop in volume, bit disappointing.

Time will tell....

Re: RFE - Red Fork Energy

Hi all,

I'm interested to know what people's thoughts are on RFE at the moment.

I believe they were expected to be admitted into the ASX200 this month, replacing CQO or AZT, therefore opening up 2 potential spots, however missed out on both.

Is the market cap still not high enough to be admitted at this stage?

Re: RFE - Red Fork Energy

Harvester, I think if any stock is to do well in this type of market, it's RFE.

I hold 0 stocks at the moment, but looking for an entry to RFE, and maybe NWT.

Not sure about the ASX200 bit. Try Hotcopper maybe.

Re: RFE - Red Fork Energy

Harvestar said:

Hi all,

I'm interested to know what people's thoughts are on RFE at the moment.

I believe they were expected to be admitted into the ASX200 this month, replacing CQO or AZT, therefore opening up 2 potential spots, however missed out on both.

Is the market cap still not high enough to be admitted at this stage?

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In March S&P announced that RFE will make the ASX300 subjected to CQO finishing up.

There's no mention of ASX200.

For refernece only, the last ASX200 admission was SUL which has a market cap ~$1.4B. RFE is no where near that atm.

Re: RFE - Red Fork Energy

RFE announces Production Testing Blair #1-24H Well Noble County, Oklahoma
http://www.asx.com.au/asxpdf/20120622/pdf/426zh0ccz6z36p.pdf

The well has been testing for approximately 48 hours with some oil and gas evident immediately when testing
commenced. During the last 24 hours of flow back the well tested as high as 20 barrels of oil per hour with 240,000 cubic feet of liquids rich gas. Whilst the well is on an Electric Submersible Pump (“ESP”), these results were achieved primarily via intermittent flow through the casing.
It is important to note that only a very small fraction of load (reservoir stimulation water) has been recovered so far during this initial testing phase and the fluid level in the well bore is very high (approximately 300 feet from the surface).
Production testing is continuing as the well cleans up and rates have not yet stabilized. Red Fork will look to release both a 30-day peak and average rate for the well as the initial production testing operations are completed.


June 20. RFE announces the commencement of completion and reservoir stimulation operations at the McMurtry #1-21H well in Noble County
http://www.asx.com.au/asxpdf/20120620/pdf/426xrr29j7ys2s.pdf
Further updates to follow.


June 4. Mississippian Operations Report.
http://www.asx.com.au/asxpdf/20120604/pdf/426n1tf6tjrjkd.pdf

Development Area 2 (Noble and Payne Counties, Oklahoma)
Blair # 1-24H Well
Completion and reservoir stimulation operations have successfully been completed on this well. Eleven frac stages over the full length of the lateral were completed with the well now flowing back frac fluid at 100 barrels per hour through production facilities. Testing is continuing and further updates will be provided.

McMurtry #1-22H Well
This well successfully reached its target depth of 9,350 feet. Logging has been completed and production casing has been run and cemented. The well has been shut-in awaiting completion and production testing.

McMurtry #1-21H Well
The well is shut-in awaiting completion and production testing. Completion operations will begin shortly.

Bunch #1-19H Well
This well is currently drilling ahead in the lateral at a depth of 4,500 feet. This Red Fork operated well will be drilled to a vertical depth of approximately 5,300 feet, with an estimated further 4,700 feet of lateral to be drilled in the Mississippi Lime formation to an approximate total depth of 10,000 feet.

Tasman #1-15H Well
This well has spudded and is drilling ahead in the vertical section.

Development Area 1 (Pawnee County, Oklahoma)
Abunda #1-21H Well
Production testing of this well is continuing and notwithstanding the high fluid level in the well bore, some intermittent (not yet stabilized) oil and gas is being produced.
It is important to note that with the high fluid level in this well and the resultant pressure on the productive formation, the Company has not yet reported a peak flow rate. This will be reported when the Company has established that the fluid level has been sufficiently lowered to enable the well to unload.
This production testing profile is not unusual for horizontal wells in the Mississippian, which require low pressure at the face of the formation in the well bore to recover oil and gas. Further updates will be provided as testing continues and these pressures are lowered.




Investor Presentation. May 22nd.
http://www.asx.com.au/asxpdf/20120522/pdf/426dk2vlm54x6n.pdf

Re: RFE - Red Fork Energy

RFE just gone onto the Dow Jones. on the S&PDJ today. Good news and awaiting the meeting to vote on the CR. After that they will have the money to drill ahead and also will go from using 2 to 4 rigs so hopefully we will get a much higher boepd by year end.

Re: RFE - Red Fork Energy

Sorry, my mistake. The S&PDJ which I thought mean't the DowJones doesn't somehow but (in this case) means we are going into the S&PASX 300 on September 21 this year so that is good news.

Re: RFE - Red Fork Energy

RNI said:

Sorry, my mistake. The S&PDJ which I thought mean't the DowJones doesn't somehow but (in this case) means we are going into the S&PASX 300 on September 21 this year so that is good news.

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The previous gusto that RFE moved with seems to have disappeared for the moment. I don't know where they are up to, but technically, not pretty.

Not terrible, but better out there. I remain optimistic on RFE's future, but that counts for nothing and usually means losing!

Re: RFE - Red Fork Energy

mr. jeff said:

View attachment 48931

The previous gusto that RFE moved with seems to have disappeared for the moment. I don't know where they are up to, but technically, not pretty.

Not terrible, but better out there. I remain optimistic on RFE's future, but that counts for nothing and usually means losing!

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Stuck in the mud alright, this is looking ugly and like it will collapse.

Someone is dumping large lines of shares all the time. Another 980k dumped in one hit on Friday.

This has been written up a lot as a takeover play in shale gas so maybe an offer is coming.

Reckon this will collapse next week.

Re: RFE - Red Fork Energy

It looks awfully like MAYBE just maybe someone is accumulating to take us over. We have been kept down too long imo. Value is around $1.50 (per analysts) in approx 12 months time when we have many more wells drilled and in production so would be awful if we are only offered about $1.

Looks very suspicous indeed. If we are offered a low ball figure, if we all hold onto our stock tightly and don't sell, surely they would have to offer higher. Time will tell.

Re: RFE - Red Fork Energy

RNI said:

It looks awfully like MAYBE just maybe someone is accumulating to take us over. We have been kept down too long imo. Value is around $1.50 (per analysts) in approx 12 months time when we have many more wells drilled and in production so would be awful if we are only offered about $1.

Looks very suspicous indeed. If we are offered a low ball figure, if we all hold onto our stock tightly and don't sell, surely they would have to offer higher. Time will tell.

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I agree that something is up. There is no reason for RFE to be avoiding a trend from a macro POV. This is artificial and I'm looking for news soon - management should have said something already as this trading has been happening since June. Admittedly it was precipitated by the CR at 70c.



Have a look at the volume spikes - the share price never closes on the highs, as soon as there is a buyer, someone is filling them.

The other possibility to a takeover is that something is happening behind the scenes (not good) and a large holder is distributing their shares, capping the price. If there was a takeover coming you would expect to see more movement to the upside with accumulation - this looks as though someone is exiting. This stock has great prospects and I anticipate a strong move up when this finishes, but what is going one behind the scenes...?

Re: RFE - Red Fork Energy

Agree Mr Jeff

Still being held back but they are drilling their heads off and production in increasing+++ so I am just holding on to my large parcel as they are the 3rd highest (going on production) amoung the asx oilies, top is of course AUT and second will be the new SEA (if it comes off) so RFE being 3rd behind those two greats says sometthing imo.

Re: RFE - Red Fork Energy

update on the previous action.

Clearly broken out of range.
Prospects not good at this stage.


3 yr weekly RFE

For anyone that likes to see their gaps filled, you could say that after that gap up, it came back and filled it over and over again.

Turns out that people wanted out and they have left in droves.
Not good for holders, however the story has some good parts so the faithful may one day see reward.

Sorry for the glib comments.

Re: RFE - Red Fork Energy

I am stupidly holding this stock from a price of 43.5c and waiting for a reversal to develop with a strong run back to 70c. Tell me I am foolish as I watch it retest that 35c level if you would like. This is one of those stocks that has had a major downside and I am emotionally trading based on enthusiasm from others.

Technically it has made no sign of moving up except for 2 things:

1/ it has tested and respected 40c twice which is a positive as far as further downside risk goes. (minutely positive)
2/ capital raise at 43c or so completed in last few days limiting the sell down below that level
2a/ this means they have cash for a while.....

Look for volume increase and a move up for a signal of interest.
I would say though on the average it will meander in a downward spiral until there is a takeover offer at around the 20c mark!

Re: RFE - Red Fork Energy

It seems to me that Red Fork will be bought out by its creditors.

Re: RFE - Red Fork Energy

Hi to all, have you seen the seeking alpha article with tittle, "Red Flags at Red Fork"?
What's your opinion?

Re: RFE - Red Fork Energy

RFE is in the process of capitalising by potential sales of some tenements in Oklahoma, to enable them to pay their creditors and stay afloat!! They have hired advisers to assist with this process, and let's hope it is successful.

I had sold previously, but have ventures back in with a small holding at these low prices, as I believe if it is going to survive, and the sales go ahead as planned, they will surely be well advised (by their consultants) how best to manage the whole company going forward and avoid the problems of the past through having such a large tenement.
Chesapeake got into the same situation and has also sold off much acreage, and has since thrived.

Like everyone I await news.

On June 23rd, 2015, Red Fork Energy Limited (RFE) changed its name and ASX code to Brookside Energy Limited (BRK).

THREAD REVIVAL!

Recap:

- RFE changed their name to BRK.
- BRK learned from previous mistakes with RFE, looked for companies that were still making money during the massive downturn in 2014/15 and set up shop in their immediate vicinity.
- Production volumes increasing.
- Land values increasing.
- Price of oil on the rise and looking to stay that way medium term.

I believe this company has some serious potential as a long term stock and is super cheap at the moment. The idea of the business is to accumulate land that is mineral rich (oil/shale), place some wells on the land to show it's potential and sell it off once the land values increase. In the meantime, they will produce their own oil from the wells to turn a profit. The company has nine wells that it started setting up in May last year. It plans to add another 14 to take production up to 1000 BOE/day.

Last quarterly report, they had 9 wells producing - this quarter they have 12 wells producing of which they have a working interest in each. Many more wells to come online this year. They expect to have 2 million generated in net cash this year which I believe is conservative as they generated $875,000 in the March quarter alone. They are taking mineral royalties and a portion of the oil and gas produced at the moment but this is not the core of the business - the idea is to show the worth of the acreage and ultimately be bought out by another major. When this happens... well...

Some exerts taken:

- Production volumes already sold and volumes forecast to be sold are expected to generate net cash flow of ~US$2,000,000 over the next 12 months. Importantly, this net operating cash flow is net of royalties and lease operating expenses. Subsequently, approximately US$875,000 of this forecast ~US$2,000,000 in net cash flow was received during the March quarter. (note: income taken is not shown in balance sheets as it is placed back into the off balance sheet and funding facility to fund more wells etc as per below)

- US$875,000 in net cash flow received during the March quarter, available to be re-deployed to fund drilling and completion costs,increased well bore interests and lease acquisitions.

- Undeveloped acreage values continued to rise during the quarter as these world-class plays continue to mature. Analysis of the estimated US$8.0 billion in merger and acquisition activity that occurred in the Anadarko Basin Plays over the last two years showed undeveloped acreage trading at a weighted average of >US$16,000 per acre. (the acreage owes them about $5000 an acre on average - they have 2100 acres in the Andarko basin alone)

There appears to be no reference to asset value in the quarterly but let's say they are able to sell for $16000 (speculatively valued at $29,000 an acre now) an acre, the acreage value in the Andarko basin alone would be worth 33 million. They have additional acreages on top of this they are developing.

Granted, this stock hasn't seen much movement over the past 12 months and I think largely due to the understanding of the business model but when the market realizes the land values and readjust them to reflect their true value, no doubt the share price will re-rate accordingly.

To top it all off, oil prices are strong at the moment which should help to increase BRK's productivity, cashflow and so on.

Please DYOR.

I'd like to wake you all up to this stealth play... very encouraging announcement out today and word is that stack play well from Continental might be a winner - cash flow and average acreage prices climbing because of smart positions in known basins. CVN followers would do well to dig a little deeper on this one. Onshore is smart when you're small cap.