Hi,
Well I see no obvious error. Try the following program, I hope it helps.
PROGRAM ReadSelaphin
INTEGER IERR
CHARACTER(LEN=80) :: strTitle
OPEN(1, FILE="C:\TELEMAC\Sta2.ref", FORM="UNFORMATTED",STATUS='OLD',IOSTAT=IERR)
IF(IERR.NE.0) PRINT*,'ERROR ',IERR
OPEN(2, FILE="C:\TELEMAC\Sta2.txt", FORM="FORMATTED")
READ(1, END=5, ERR=7) strTitle(1:80)
GO TO 999
5 PRINT*,'END OF fILE 1'
GO TO 1000
7 PRINT*,'ERROR IN FILE 1'
GO TO 1000
999 WRITE(2,*) strTitle(1:80)
1000 CONTINUE
CLOSE(1)
CLOSE(2)
STOP
END