RE:Infrastructure Expansion Cost, Cost/Montney well, CondensateGood post Stockfy. From my experience light oil vs. condensate pricing isn't significantly different and the premium pricing for condensate over the long stretch. Also trucking can be more expensive and shrinkage can be an issue due to the higher vapour pressure (like trucking gasoline) - that can eat up the price advantage in a hurry.
I don't specifically know what the breakdown of the NGL's are for RMP's Elmworth gas but I can guess it would be in the 40bbl/mmcf range (for an ok medium cut gas plant) with about 40%/25%/35% splits between C5+ condensate, C4 butane and C3 propane and a 15% shrink on raw gas volume. But using the 35% oil+ liquids ratio on the 2200 boed's (6mcf/boe gas assumed) given in the last update I'm estimating 530bbls/d oil & C5+, 100 bbls/d C4 and 140 bbls/d C3 with 10mmcfd inlet raw gas and 8.5mmcfd sales gas. There should be enough capacity to squeeze in two more wells, probably somewhat choked, but drilling 5 more wells after that will definitely require expansion. But how much? RMP seems to really want to ramp up drilling to possibly 30+ wells (at least according to the Figure 1 map shown in RMP's Oct 11th AER application) by the end of next year there will be a much larger facility in place to accomodate the huge growth in production. So my guess is that if 3 wells require about 10mmcfd of raw gas capacity, adding 30+ more wells in 14 months with longer Hz's developing 10 sections could use at least 100 mmcfd.
Incidentally Advantage O&G when it crossed the 100mmcfd threshold (from ~100 wells) in the last half of 2013 was trading at ~$6/share and over $1 Billion market cap with very lean Montney gas production (most of what liquids they did get was propane if memory serves). With oil heading over $60 and an aggressive game plan being put into play I really like RMP's stock price growth potential.
Keep in mind this is all back of the envelope type stuff from what I've seen in the public domain. And the reality of the last 2 yrs of horrid commodity prices + NDP & Lib gov'ts tempers the excitement. But I'm now feeling optimistic and very curious on what RMP's team has for a fully fleshed out Elmworth development plan.