RMP ENERGY INC T.RMP

FE asset overview: PWE style sp increase on many options

[Resilience]

People on this board should take a long hard look at this asset overview and the fact that the gap to the new credit limit of $ 100 mln (downstepped from $ 125 mln) is only $ 5 mln or so end October. Maybe even less and will be gone by YE. 

So here's a couple of the many things that could happen that would rocket the sp in the current increased O&G price environment:

1. Right out sale
2. $ 125 mln credit limit stays because of rise in strip prices
3. Slight increase to $ 110 mln credit limit because of rise in strip prices
4. Convertible bond 
5. Sale of Waskahigan - wiping out near or all of the debt 
6. Sell Kaybob for $ 25 mln+ or so
7. Sell the non-core assets for $ 10 mln+ or so (Peyto is operator of part of that and could easily scoop up this WI)
8. Nothing happens because current O&G prices are far above guidance and they can stay within credit limit and redirect cf to drilling now Gold Creek has been bought

Here's the official total asset list of FE/GMP so you can puzzle a few other options. Point is there is a massive amount of options and a negligible credit gap and therefore a PWE-style  rise possibility when they come out with a decent new plan and presentation + additional liquidity in some shape or form:

KEY ATTRIBUTES OF THE COMPANY CORPORATE HIGHLIGHTS

·         Q2 2016 W.I. production averaged 3,307 bbl/d oil, 321 bbl/d NGLs and 28.8 MMcf/d gas (8,425 BOE/d, 43% oil and NGLs) with Kaybob production shut-in from May 25, 2016 to June 29, 2016, which reduced Q2 production by ~425 BOE/d.
·         2016 estimated funds from operations of $40 MM with average field operating netbacks of approximately $16/BOE.
·         Owned and operated infrastructure driving low operating costs of approximately $5.25/BOE in Q2 2016.
·         High working interest and mainly operated land base with 255,501 gross (242,224 net) acres of land; 83% undeveloped.
·         Concentrated in the Montney light oil fairway at Ante Creek, Waskahigan and Gold Creek in West Central Alberta.
·         Recent strategic acquisition has resulted in a significant Gold Creek Montney land base of 78 gross (77.5 net) sections
offsetting an existing Middle Montney development and access to infrastructure.
·         InSite Petroleum Consultants mechanically updated YE 2015 reserves report with an effective date of June 30, 2016.
·         Total Proved reserves of 24.6 MMBOE (36% oil and NGLs) and P+P reserves of 40.8 MMBOE (38% oil and NGLs).
·         Proved Producing reserves of 13.7 MMBOE (37% oil and NGLs) represent 33% of P+P.
·         Estimated net debt of $104.5 MM as of June 30, 2016 and estimated tax pools of $456.3 MM as of March 31, 2016.
 
ASSET HIGHLIGHTS

·         Waskahigan – Large light oil Montney resource with improved well performance using slickwater fracturing.
·         Q2 2016 W.I. production averaged 1,115 bbl/d oil and 5.8 MMcf/d gas (2,090 BOE/d, 53% oil).
·         Large, contiguous land position of 73 sections (100% W.I.) with Montney rights.
·         Total Proved reserves of 8.5 MMBOE (50% oil) and P+P reserves of 15.8 MMBOE (50% oil).
·         Over 200 low risk Upper Montney horizontal locations identified including 23 PUD and 28 Probable.
·         Estimated OOIP of 173 MMbbl in the Upper Montney on lands with reserves booked; P+P recovery of only 6.0%.
·         Improved production performance and estimated ultimate recovery with new hybrid slickwater completion program.
·         100% owned and operated oil battery with total capacity for 6,000 bbl/d of fluid and 10 MMcf/d of gas.

·         Ante Creek – Prolific Montney light oil development with increased recovery upside through waterflood.
·         Q2 2016 W.I. production averaged 2,200 bbl/d oil, 110 bbl/d NGLs and 16.2 MMcf/d gas (5,000 BOE/d, 46% oil and NGLs).
·         Focused land position of 35.5 gross (35.2 net) sections with Montney rights.
·         Total Proved reserves of 6.9 MMBOE (46% oil and NGLs) and P+P reserves of 10.1 MMBOE (48% oil and NGLs).
·         Estimated OOIP of 145 MMbbl in the Upper Montney on lands with reserves booked; P+P recovery of only 6.6%.
·         42 potential Upper Montney horizontal locations identified including 3 PUD and 2 Probable.
·         Pilot waterflood project recently commenced and several waterflood analogs with proven results.
·         Waterflood development estimated to increase the primary recovery factor from ~7% to ~15%.
·         Offset developments exploring Middle/Lower Montney potential for further light oil development upside.
·         100% owned and operated facilities with recent connection to Waskahigan; ample capacity for future development.
·         74 sections (100% W.I.) with Duvernay rights in the over-pressured Duvernay volatile oil window.

·         Gold Creek – Highly prospective Montney acreage with significant recent horizontal well test results.
·         Large Montney land position directly offsetting competitor Montney developments with one horizontal Middle
Montney exploration well drilled and tested; final 4 day test rate of 5.0 MMcf/d of gas and 300 bbl/d of oil (40^o API).
·         78 (77.5 net) sections of prospective Montney land accumulated through Crown land sales and recent acquisition.
·         Offset Montney development IP30 rates exceeding 800 BOE/d, in line with RMP’s Middle Montney well test results.
·         Total Proved reserves of 1.4 MMBOE (36% liquids) and P+P reserves of 4.5 MMBOE (36% liquids).
·         Up to 100 potential Middle Montney development horizontal locations identified including 2 PUD and 4 Probable.
·         3 exploration Middle Montney horizontal wells planned for 2017 to continue the majority of the lands beyond 2020.

·         Kaybob – Contiguous land position with low risk Montney gas infill drilling upside.
·         Q2 2016 W.I. production averaged 4.0 MMcf/d gas and 85 bbl/d of NGLs (750 BOE/d, 12% NGLs) with production shut-in from May 25, 2016 to June 29, 2016 due to a midstream gas plant outage.
·         26 gross (25.9 net) sections of Company operated Montney lands.
·         Montney gas development with infill drilling potential and established area infrastructure.
·         Total Proved reserves of 5.5 MMBOE (10% NGLs) and Proved plus Probable reserves of 7.1 MMBOE (10% NGLs).
·         1 PDNP, 11 PUD and 1 Probable horizontal Montney locations booked; 9 additional unbooked locations identified.

·         Other Assets - Pine Creek, Gilby and Big Muddy.
·         Q2 2016 production averaged 2.8 MMcf/d gas and 115 bbl/d of NGLs (585 BOE/d, 20% NGLs).
·         Total Proved reserves of 2.3 MMBOE (11% NGLs) and Proved plus Probable reserves of 3.3 MMBOE (10% NGLs).
·         Wilrich horizontal gas production with booked upside at Pine Creek; Peyto operated with an average 44.5% W.I.

R.