New all time low hit on Friday. At the moment we are trading at...

New all time low hit on Friday. At the moment we are trading at less than book value, which in most circumstances presents a good trading opportunity in terms of risk/reward. The production announcement on Friday was a bit of a nothing update, we really need to get production around the 200BOPD mark.

It's a prototype well and I still think there is a chance production numbers will improve if they can optimise the fracking process to the geology. We got about $57 netback for the September quarter from an oil price of $92. Even at today's lower prices we can still get $47 netback which is a good margin. If you look at the latest research coming out of the US, a lot of the marginal shale producers (up to 1/3 by some estimates) are uneconomic at $80.

http://www.reuters.com/article/2014/10/23/idUSL3N0SH5N220141023

Still disappointed management took so long to raise capital, and now we've got massive dilution at 17c even though it's been evident for almost 6 months that they needed to raise cash. At least, management has shared heavily in the losses, RF and TH have lost millions. Would like to see them buy at these prices to support the share price, because at 15c and with the upcoming news flow from Sleeping Gas, Maverick and the Illinois projects due in the next few months, a large reversal swing and rerating is quite possible.