Post by
profittaker1 on Feb 02, 2017 11:25am
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!
Comment by
BigFishy on Feb 02, 2017 5:09pm
Mgmt been in the doghouse. Smart guys like you know it's a screaming buy when wells production increases and results published. Mgmt changes were smart.