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RMP ENERGY INC T.RMP

"Iron Bridge Resources Inc, formerly RMP Energy Inc is a crude oil and natural gas company engaged in the exploration for, development and production of natural gas, crude oil and natural gas liquids in Western Canada."


TSX:RMP - Post by User

Comment by bplondonon Dec 10, 2014 12:00am
271 Views
Post# 23213473

RE:RE:RE:Price per barrel vs. production costs?

RE:RE:RE:Price per barrel vs. production costs? Are you not capable of looking at their financials? They had netbacks of over $46 barrel with oil at approximately $90 barrel Cnd. in the third quarter. Oil has now dropped in Cnd $ terms to around $70. Do the math. 

RMP has virtually no debt, very low cost wells with high production and low decline rates (a number of which are currently choked off) and serious potential for large increases in reserves. Oil will have to fall a lot further before they have any serious problems my friend.

Their biggest problem has been that they've been infrastructure constrained and those constraints are about to be diminished considerably in the next 3-5 months allowing them to increase production substantially. Even at these prices and much lower they can be cash flow positive.

Takeout at $4? I don't think so.

Very good management, certainly among the best in the business with proven historical track records. 

You're comparing RMP to U.S. shale oil producers? That is a very apples to oranges comparison. Almost laughable in fact.  RMP is not your average junior oil and gas company. 

Difficult environment? Certainly.  If oil prices drop to $40 and stay there for a year I suppose we'll all have problems. Personally, I don't think that's a likely scenario so right now I'm not losing any sleep owning RMP. 




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