$5.50 Soon to be Cheap Entry Point!Did anyone notice in today's National Post an announcement by Pembina Pipelines of a $115M expansion of its pipeline system northwest of Edmonton. A new 16 inch line is going in to supply RMP and others in getting their oil out.
I would post a link to this artice but it is not yet available on the National Post website. It may be in the Globe and other spots.
In any event, the wishes of RMP at the recent Peters conference are being fulfilled. Now all that remains is for RMP to spend the $5M in 2014 to expand the line between Waskahigan and the Pembina mainline. In addition, some new capital will need to be spent to expand (yet again) the Waskahigan battery itself.
For the past few months, I thought that the only way for RMP to expand beyond about 9,000 boe next year was to truck the oil out. Now I am seeing 10,000 or even 11,000 boepd (more oily all the time) as an exit point for 2014.
Just wait for the analysts to analyze this in the next few weeks. :)
Bought another 13,000 today. Even at these price levels I am very confident of the way forward now to not $6, or even $7, but now $8.
Larsen6