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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 Seppelton Nov 22, 2016 11:42pm
153 Views
Post# 25500076

RE:RE:RE:RE:RMP Gold Creek

RE:RE:RE:RE:RMP Gold Creek
I wouldn't call a $103 million net debt reported in Q3 vs $100 million line a mortal wound. There were many means to solve the shortfall but the liquidity would be limited and not enough cash to maintain current production plus grow Gold Creek. I think, the company missed it's chance in Q1 2015 when it could issue equity at $4 per share or more. Crew, Kelt and a few others did it and were able to invest to compensate for declines or even grow production.
Anyhow, something bigger had to go but unfortunately the market sees it as a sign of weakness when a company develops an asset ready for waterflood and then selling it when the market is hurt by low commodity prices.
 
The purchaser got a good deal but I am not sure if it was such a great bargain. Production fell to 3800 boe by mid November and the property requires spending to deal with declines and even more spending to grow and maintain production.
ERF is my largest holding. There were rumors that it may sell Marcellus assets for about $500 million. The proceeds would allow for further expansion in ND but it could be they have an eye on Montney and Ante Creek was just the first step. 
Rumors aside, it's tax selling season so not much to expect from RMP for another month. I feel comfortable now that it is debt-free and hope for positive updates in Q1.
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