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RMP ENERGY INC T.RMP

"Iron Bridge Resources Inc, formerly RMP Energy Inc is a crude oil and natural gas company engaged in the exploration for, development and production of natural gas, crude oil and natural gas liquids in Western Canada."


TSX:RMP - Post by User

Comment by pablo87on Feb 17, 2017 8:17pm
186 Views
Post# 25864222

RE:RE:RE:RE:Asks are being slowly taken out

RE:RE:RE:RE:Asks are being slowly taken outA good point, thanks for clarifying.   Even though its not a good time to sell, it seems the opportunity cost bar is very low because Gold Creek's potential is so high.

For example, if they sold those assets for a measly $5M (probably worth what, $15M? they do have 19,000 acres) and drilled a Gold Creek well, and it produced at the type curve, after the initial 9 months payback period, that well would generate more field cashflow in the subsequent 3 months than Kaybob and Pine Creek assets would in the same period (months 10 to 12).

You would lose the first 9 months of that gassy revenue of course but then you'd drill another well at Gold Creek whose first 3 months of fcf would exceed this.

And year 2 is a blowout as you would have TWO Gold Creek wells producing far more field cashflow than Kaybob and Pine Creek.

And if you got $15M and drilled 3 Gold Creek wells...
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