Valuation Comparison BBI vs RMP
Blackbird Energy just purchased 8 sections and initiated production at Pipestone. They now hold 96.8 sections and they trade at a $339 million market cap. They hold some cash so lets say the enterprise value (market cap - cash + debt) is just over $320 million. That means they are valued at approx. $3.3 million/section. They hit 1 prolific well: well 2-20 final 24 hours, 7,973 kpa, 6.8 mmcf/d, 641 liquid hydrocarbons, 1,768 boe/day. The other 2 wells with results each tested under avg 500 boe/day so not prolific. Blackbird are tying in 6 wells in February. RMP Energy is just to the southeast with Gold Creek. RMP has 73.5 net sections and trades with a $114 million market cap. RMP also has some cash so they trade at a $110 million enterprise value. That means they trade at $1.5 million per section. RMP also had a prolific well: The 3-22 well final 35 hours (through smaller-diameter production tubing), 17,000 kPa, 4.4 mmcf/d, 200 bbls/d of light oil, 930 boe/d. RMP are tying in 3+ wells in March. RMP also has other Montney assets at Waskahigan and Keybob given no valuation in this comparison. Seems like the market needs to catch up!