RE:Any analyst comments on the update?Scotia Bank.
Recent Update Text as of 14OCT15
. RMP announced Q3/15 production and provided an operational update.
Production Positive. RMP's Q3/15 production of ~11 mboe/d was ~5% ahead of our forecast and consensus (10.6 mboe/d and 10.4 mboe/d, respectively) despite downtime caused by previously mentioned disruptions, including the Alliance system outage. The company is maintaining its YE 2015 guidance of 12 mboe/d.
. Q3 Drilling Update. During the quarter RMP drilled three net Hz Montney wells at both Waskahigan and Ante Creek, and has realized well cost reductions of ~30% YoY (to $4.1M and $2.7M, respectively). Two Waskahigan wells offsetting the 2-15 well were brought onstream in October with initial rates of ~600bbl/d, while the third well (drilled to delineate RMP's NW land) is set to be brought onstream in November. The Ante Creek wells were brought onstream during Q3/15, with initial results in line with the company's expectations
. Looking into 2016. RMP added 10 sections of undeveloped land to its new focus area (likely Gold Creek) during Q3/15, increasing its position to 46 sections. The company plans to drill a Hz well in the area in 2016. RMP also expects to commence a waterflood pilot at Ante Creek in mid-2016 pending regulatory approval.
We maintain our SP rating.