I reckon that AOK (subject to a good debt facility) should offer to take over RFE's Developmental Area 9. RFE still have not drilled a single well here despite it (arguably) being in one of the sweet spots in th play. RFE looks to be pretty stretched across all its other acres so it could be win win for both companies.
I've superimposed RFE Dev 9 acres (dark)over the usual Snake River map. Its a bit rough but you can see how it fits.
RFE has 56% WI in area 9 (20 sections) - which means 7168 net acres of undeveloped land. Today RFE announced:
Red Fork Energy Limited (ASX:RFE, OTCQX:RDFEY, Red Fork or the Company) is pleased to announce that it has closed a transaction to sell some selected undeveloped acreage from its larger Mississippian/Woodford holdings in the Big River Project. The purchaser agreed to acquire approximately 7,400 acres and associated seismic rights from Red Fork’s wholly owned subsidiary Red Fork (USA) Investments, Inc. for a cash consideration of approximately US$11 million (subject to any post closing adjustments).
The wording suggests an agreement to sell but the sale has not yet closed. No need therefore for AOK to make an announcement (if they are indeed the buyer). Interestingly AOK should get $10.5 from the convertible notes if the price holds.
Coincideces. Coincidences.
AOK Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
