RMP ENERGY INC T.RMP

Paramount's Feb Operational Update

[ditchdigger251]

Here's some detailed recent Paramount data taken from wells that are approximately 2 townships south and 1.5 townships west of RMP's Gold Creek lands:

https://www.newswire.ca/news-releases/paramount-resources-ltd-provides-operational-update-and-preliminary-2017-outlook-613813823.html

I want to point out that these wells are drilled with ~3000m lateral lengths and were slick water frac'd at 100 tonne/stage and stage spacing of 40m to 59m (the 15-14 well had the biggest spacing).  Paramount was really going Full Out Texas to stimulate as much rock as possible.  The proppant intensity is over twice as much as what many operators were doing just over a year ago (I've seen many completions between 0.8 to 1.2 tonnes/m of lateral).  The results from such "Full Montney" all-in horizontals are astonishing.  Keep in mind that Paramount's land is further "down dip" and more in the "overpressure" area compared to RMP's lands that appear to fall in a more normally pressured area - that can affect that type of completion that works the best (for example Advantage Oil & Gas used N2-foam fracs on more normally pressured Upper Montney & energized slick water fracs on overpressured lower-middle Montney wells).  The bottomline is I can see RMP's land as being more oily than Paramounts - which still is pretty darn good given that 40% of the BOE's produced are liquids.

		15-02 PAD	4-19 PAD
WELLS		15-14	4-7	02/4-7	1-12	02/1-12
Completion Details
	Completion Stages	50	70	75	73	58
	Proppant (tonnes)	5,000	7,000	7,500	7,300	5,800
	Proppant intensity (tonnes / meter)	1.7	2.3	2.5	2.4	1.9
Production - Cumulative
	Natural gas(1) (MMcf)	997	135	45	9	25
	Wellhead liquids(1) (Bbl)	161,479	64,318	30,338	3,365	6,484
	CGR(2) (Bbl/MMcf)	162	477	675	380	258
	Days of flowback	152	45	16	11	13
Production - Last 7 Producing Days
	Natural gas(1) (MMcf/d)	5.0	4.8	3.7
	Wellhead liquids(1) (Bbl/d)	754	1,915	2,261	n/a(3)	n/a(4)
	CGR(2) (Bbl/MMcf)	152	403	607
Production - Last 24 Producing Hours
	Natural gas(1) (MMcf/d)	5.4	4.7	3.4	4.1
	Wellhead liquids(1) (Bbl/d)	832	1,766	1,824	1,945	n/a(4)
	CGR(2) (Bbl/MMcf)	153	380	536	474

[Seppelt]

When POU released this on Feb. 15, it's shares went up from about 16 to close to 19 in only a few days. Great wells with a lot of condensate which is as good as oil.   Cost, however, should also be factored in. These extra deep and long POW wells are probably a lot more expensive to drill and complete.    RMP should soon release Q4 and annual results. It would be

[ditchdigger251]

From January 23rd 2017 News Release (last paragraph of Operations Update): "Overall, anticipated production additions from the Company’s modest Waskahigan drilling program in 2017 is expected to maintain corporate base production levels of 3,200 to 3,300 boe/d from Waskahigan and its other non-core areas, collectively (approximately 35% crude oil and NGLs). Additionally, the tie-in of the

[pablo87]

March 21 is the date when RMP will release the reserves, Q4 and Year end, and operational update.

[Seppelt]

Gentlemen,    Nuvista just issued Q4 results. Among other things, it says: "Identified two emerging development blocks at Gold Creek and Pipestone". No individual GC well data is provided in this report or in January update. However, the updated March presentation (Slide 15) illustrates Gold Creek type curve data. It's 3000 m ERH cost $8.4 mm, CGR 60 bbl/mmcf, etc

[pablo87]

If you look at Nuvista's #s, $10.5M DCET, $24.50 netback and 1.1year payback, that means 428,000 BOE produced in 400 days or 1070 per day.  The RMP type curve appears to show 550+ BOE/day in months 7-12.  Since their DCET is half, seems like RMP's Gold Creek economics WILL BE better thus the 0.9payback (which would indicate at the same $24.50 netback, 200,000 BOE over 330 days or