Fantastic Ante Creek wells WOW!!!
Need one say more for these Ante Creek wells. HZ1 is producing over 1,000 boe/d without lift after 3 months on production. HZ2 tested at 3090 boe/d and HZ3 tested just about the same.
Cash flow and production increasing by leaps and bounds for 2013.
Bottleneck at Ante Creek will be out of the way and new oil battery expanded early in 2013.
South Ante Creek will be tested this quarter.
SE Waskahigan can be also tested this quarter or early in 2013.
Lots of oily targets to hit into over the next year.
Kaybob, Rincis... and Peyto operated Pine Creek for NG plays. Peyto is having a lot of success on RMP lands and will most likely pony up and drill out their other holding on these lands not yet licensed. Maybe even a reverse swap in the making as Peyto has some sections at Waskahigan from the ONR acquisition which could be a farm in and leave Peyto to do what they do best!
Royal Bank out with upgrade today also and a glowing report on Ante Creek wells and praising up management. One of the "top picks" in junior e&p companies!
Snippests of praise.
• While the latest test results are certainly impressive, even more impactful in our
view is the production update from the company's 1st horizontal into the play,
In addition to a solid quarter, RMP's Ante Creek results and current production
levels released along with the financials are impressive. On the back of our
increased valuation of its Ante Creek play, we have raised our target price to
$3.25 (from $2.75), and continue to rank RMP as one of our favourite names in
the junior E&P space. The company is showing strong oil and cash flow growth,
has excellent financial liquidity (1.0x debt to forward cashflow) and is lead by an
experienced and successful management team.
All of the coverage doesn't rate any impact from Peyto giving about 1,000 boe/d of production to them or any values on NG lands so a recovery in NG will also dramatically raise value of RMP. Year end reserves will be boosted by a fairly big margin in oil weighting, which will raise price value! This is evidenced by the bankers raising borrowing in just this year alone from 60 to 80 and now to 110 million dollars. The stock price hasn't matched the price the lenders are putting on the company and stock price will have to rise a good bit from here to reflect the prospects and success of RMP.
GLA...
Plus an no point does anybody mention that they have some JV lands with Mancal Energy! Now you're talking money at that level...