undervalued?, page-32

RFE has completed ONE sale of undeveloped acerage for $1486/Ac (oil price circa 100/bbl) in April 2014.

RFE completed ONE farm-out of up to 160Ac (initial 40Ac "earn-in").

On 8th April:

The Board considered the capital demands of Red Fork’s large
acreage position, and the funding constraints posed by the current
market capitalization, debt levels, and Red Fork’s relatively high cost of
capital. As a consequence it believes the additional capital required to
reach self-sustaining cash flow cannot reasonably be sourced from
further conventional debt or equity.

Within approx 4 months of entering into a $150m (of which 100m was drawn) facility .....
"Going Concern
The financial report for the six months ended 31 December 2013 has been prepared on the going concern basis
that contemplates the continuity of normal business activities and the realization of assets and extinguishment
of liabilities in the ordinary course of business. For the period ended 31 December 2013 the Group recorded a
net loss of $0.7 million (June 2013: $21.0 million) total equity of $166 million (June 2013: $122 million) and had
working capital surplus of $7.6 million (June 2013: deficit of $40.5 million).
In November 2013 Red Fork (USA) Investments, Inc., a wholly owned subsidiary of the Group, entered into a
credit agreement with Guggenheim Partners, LLC (“Guggenheim”) of up to US $150 million secured term loan
(“Secured Loan”). At December 31, 2013, the Group has borrowed $100 million under the Secured Loan (See
note 14 Interest-Bearing Loans). Under the terms of the credit agreement, the Group has quarterly covenant
reporting obligations, and the Group was in compliance with these covenants at 31 December 2013.The Group
anticipates it will be in breach of certain covenants as at 31 March 2014 and accordingly it has obtained a waiver
from Guggenheim in respect of those anticipated breaches as of that date."

you will find this loan "is secured ".......

So - the Directors have had over SEVEN MONTHS to "do something" ...........sadly, for shareholders - they CHOSE NOT TO ..........................................

If i were a holder - i would want to know "WHY" .......

as you say - high risk / high reward .........

truely unbelievable it could get to this ...........
rgds
V_H