RMP ENERGY INC T.RMP

Corporation presentation?? Time for an update

[counterintuitive247]

I hope the new BOD Chair is stirring up the nest, maybe a few kicks would help. this team seems to be lagging on important things. Like a corporate presentation. The latest is pitiful. I am very hard on this company since I'm at a huge loss on the stock . Personally I would like the whole board changed out, all previous members can take a hike. They through the towel in last summer and are finally now retiring after they have their severance. Good riddance

[pablo87]

No point to update the presentation now as the main news, the 2016 reserves report which will include Gold Creek for the first time, comes out next month I believe.

[Seppelt]

Is it so hard or costly to update it? Not much to add to existing shareholders but it leaves a bad impression on potential investors who visit the site and see an outdated November presentation. Most peers already have February or at least January presentations. Could have updated the Board and a few other things.

[Zoltar4kingrite]

i think that with  the management changes and a new crew at the top,they are are developing a new approach and an update maybe forthcoming.

[pablo87]

Fair enough, the old approach - borrowing heavily from the always reliable banks (sarcasm) in order to increase production thru the drill bit - didn't work out too well... What I'm hoping for is that they sell the non-core assets - even if it means a 1,000 boe/d drop in production - and focus on delineating and improving the reserves on their core assets while drilling within their

[profittaker1]

Doesn't the production they have at Waskahigan subsidize the drilling at Gold Creek and also help ensure that $40 mill credit line is accessible? They need cash flow to have a credit line or the bank would remove it. RMP need the non-core assets for now until Gold Creek is proven up and generating free cash flow. Then they could sell the non-core assets and try to aquire more land at Gold

[pablo87]

Without any capex on or contribution from Gold Creek, they appear to be break-even on cashflow for 2017.  4 wells at $3.5M each, $7M of SG&A, $20 netback on 3250BOE/day.   The $20 netback stated in November press release seems high though and could be predicated on the disposal of non core assets.  I prefer they sell non core assets to fund capex than rely on the banks.  

[BigFishy]

Why would anyone expect a divy from a .78c stock. Was there one when it was multiple dollars? they need to be drilling Gold creek not pisding it away on dividends. 

[profittaker1]

I'm talking way down the line here. In the long run a dividend could bring more price sustainability. Think Birchcliff Energy if RMP are not bought out first. I was just saying it was an option, not that they should do it this decade lol. They should try to get more dry land at Gold Creek now if they can though. I heard a rumour that they passed on Chinook's other land cause they suspected

[pablo87]

Seppelt, turns out you are right. I reviewed the November presentation and found it to be misleading.  So there is a need for a new presentation. It'll be interesting if they come clean on the Ante Creek transaction or they just sweep it under the rug.

[BigFishy]

They are working on it. 

[pablo87]

A list of topics the new presentation could address (no particular order, just a list): #1 Reserves (by asset) - I know they usually have a PR for this but a summary page should be part of any presentation.  It would also be nice if it was explained why there are so many drilling locations but only some of them are part of the reserves.  Also, I think this is where drilling locations

[profittaker1]

@pablo87, maybe you should email hr since they are the only ones that can address your concern: [e-mail].

[pablo87]

I was going to but found a better way.  Storm Resources just released their Q4 #s and reserves. I think its one of the best and most complete releases I've seen from a small cap.  Everything is there.  If RMP could follow a similar format and tone, it would go a long way I think.

[Resilience]

I can see some of your points. Most important one: don't confuse average netbacks of $ 20 p/b (pulled down by gassy Kaybob) with Waskahigan netbacks, which in my calculations are now around $ 37 CAD (driven by 50% oil%) - also they will get royalty framework advantages at the front end of well life so that will increase pay-back as well. If you then take 1.1 years payback it's pretty

[Seppelt]

Another interesting point is Ante Creek transaction. It's history as far as RMP is concerned, except for a few unanswered questions, but I am still struggling to understand what was ERF's rational acquiring it.  It's Canadian Waterfloods division is concentrated in the Southeast AB and Sask. Adding a few sections way up Northwest in the Montney, IMO, was either opportunistic or

[SigmaKappa]

I just received a teaser a day ago. Enerplus is selling a 6000 boed package that spans ne bc and deep basin. They are trying to divest areas too.

[Seppelt]

Late teaser - deep basin nat gas sold a year ago, pounce coupe about 6 months ago.

[pablo87]

I'd be livid too if I owned before Ante Creek.   We'd probably get reamed again though if they sold Waskahigan.  Our best hope right now is for a reserves surprise. ERF - for their size, ERF sure buys and sells assets like its going out of style.  Their own properties don't seem to be as good in reality as they would like us to believe but they do seem to get top