RMP ENERGY INC T.RMP

Schaefer Mentions RMP

[PetroLoonie1]

from Keith Schaefer O&G Investments Bulletin today........................

"Rob Colcleugh was a maven in Calgary for years, doing investment banking at MacQuarie.  Then he took over the reins at RMP Energy (RMP-TSX; OEXFF-PINK) late this summer.  In his first month, he sold all his non-core assets for $80 million, and drilled two wells, each for $1 million LESS than ever before.  Not a bad start.  Armed with $45 million net cash now and a massive land position in Alberta that all his neighbours would love to buy, come here what Rob’s going to do at RMP in Months 2-6.

The stock trades at 58 cents, but 30 cents cash, 1400 boepd production valued around $50 million or 30 cents, plus over 50,000 acres in one of the hottest plays in Canada (recent deals done at $3200/acre) an investor can easily get $1.10-$1.35 value for the stock. "

[bto1984]

Thanks for this. Looks like the company will be presenting at Keith's investor summit next Tuesday in Vancouver (https://www.subscribersummit.com/). Would be nice to have someone attend and provide any info here. It's free.

[PetroLoonie1]

also read in a post that he is recommending Cardinal Energy CJ but DYODD. That stock has 8% divy

[TheRock077]

This post has been removed in accordance with Community Policy

[ditchdigger251]

"For the first time in a decade, the world economy is returning to its global roots which means increassing demand for oil."  Thanks for that assessment.  Another way of saying this is: FOR THE FIRST TIME IN ALMOST TEN YEARS WITHOUT SOME STUPID DEMOCRAT PROGRESSIVE/SOCIALIST PRESIDENT IN CHARGE THE MAJOR ECONOMIES OF THE WORLD ARE WAKING UP TO COMPETE AND EXPAND. That takes

[pablo87]

IF the plan is to improve drilling methods, locations and increase delineation / reserves and lands while keeping lots of cash on hand until a good offer comes along, I'm all in.  Better to keep the oil in the ground and the cash in the bank than have the oil above ground and owe the bank a bunch of money. Certainly a better approach than the past mantra of increasing production and

[SunChild]

RMP has rights to 35k acres of prime oil land, 45 million in cash, working wells, and minority share in the company that is buying the rights from them.  Not bad in my books. I doubt your scenario of leaving the money in the bank until a good offer comes along is the plan.  Grant.

[pablo87]

Third time's a charm? LOL

[pablo87]

As a rule for small E&P's, bank debt has destroyed shareholder value - that's because banks panic when WTI goes down, forcing companies to sell assets (if not worse) at distressed prices.  Conversely, those who have cash get to pick and choose assets for a song (look at the transaction between ERF and RMP, ERF probably doubled their money already). So as long as they stay cash

[SunChild]

Check out the corporate presentation on the RMB if you haven't already.  There are 2 more wells being drilled for sure and 2 optionals already planned.   There is mention of drilling to maintain rights and talking to other companies (I think about using pipelines in the area).  As to return being passive things are changing for a reason. I suspect someone agrees with you

[pablo87]

Thanks, I did.  The circular has a couple of nuggets.  Credit line is now $5M so for L'C's only  That fact alone is worth 20 cents a share, lol.  Someone should ask if they plan to raise it ( if yes then its not worth 20 cents!).  Reserve report indicates 30 or so locations booked and is based on some sort of type curve,  what is it?.  Another question is

[erickf123]

I see no mention of all the insider buying of the pp at 60 cents. 8 guys bought.