RE: How would RER compare to CMTHi HDP18, Somehow your alias seems familiar,
A few quick thoughts. I am not all that knowledgeable on valuating O & G companies which is an expertise of it's own. However I have been in RER since Apr 2002 having bought in at $3.75 & added a month later at $3.61. I have done ok on it but I think it could do even better over the next 12 months if they can rectify some of the shut in NG. They have done well at managing their balance sheet & adding reserves with land acq's & drilling. They have also been trying hard to increase the NG weighting. I have been following CMT for some time & came close to buying on a few occassions such as the recent dip. It is much more weighted in NG which seems good based on what many seem to think. Both of these companies have disappointed the market due to problems bringing production on stream therefore they both carry lower valuations than the market norm. Some would therefore view these stocks as good value.
I can tell you that both Irwin Michael of ABC Funds & Howson-Tattersal of Saxon Funds both have solid positions in RER. They are both outperforming value managers.
I would say that RER is more conservatively managed than many small cap O & G peers. Many would argue that better performers such as Peyto, which have a history of better, more efficient production growth are better value but with their lofty valuations, they are susceptible to any disappointments. If one wants to see what happens when things unravel then look at what happened to Gauntlet. There is certainly some level of risk in playing these stocks.
As for takeover targets I think RER needs to get bigger before it becomes attractive, CMT is defintely in the correct size range for this activity. This is one of the reasons I am attracted to CMT but I think RER is safer. Good luck, Cheers!!!