Folks, I have a few questions because I try to figure out what is going on with RMP. I don't bash, I make my research, I just post news, so respond responsibly.
The first is about the DECLINE RATE. it seems that it's 15% on a quarterly basis or 60% annualized:
RMP's third quarter 2016 production and crude oil and natural gas reserves from its remaining properties are highlighted below:
- Third quarter 2016 average production of approximately 3,800 boe/d (35% crude oil and NGLs);
- 17,450 Mboe of total proved reserves(1);
- 29,684 Mboe of total proved plus probable reserves(1); and,
- 170,090 net acres of land acreage.
And RMP also announced recently:
- Exit rate production of 3,200 to 3,300 boe/d (35% crude oil and NGL's) from Waskahigan and the Company's other non-core areas, with a low risk Montney development inventory at Waskahigan of high rate of return wells of up to 200 potential drilling locations;
--------------------------------------------------------------------------------------------------------------------
ZERO PRODUCTION GROWTH IN 2017 and DEBT in DEC 2017
It seems that RMP will have to
drill 7 Montney wells to just keep its production flat in 2017, according to the official news. Specifically, RMP announced that:
Subject to completion of the Ante Creek Disposition, the Company's Board has approved a $45 million capital budget for 2017. The capital plan will include the drilling of three (3.0 net) Montney horizontal wells at Gold Creek and four (4.0 net) Montney horizontal wells at Waskahigan. RMP will also proceed with the installation of a gathering line and production equipment at Gold Creek, which will provide preliminary production data to allow the Company to assess full field development potential. The modest 2017 drilling program at Waskahigan is expected to offset corporate declines and maintain pro-forma base production levels. And to keep its production flat, RMP will also load DEBT by the end of 2017 because its remaining cash now proforma the Ante Creek sale is just $10 million, while RMP doesn't generate $35 million annual cash flow from its operations. How will it find $45 million? Perhaps, it can sell some of its non-core producing assets but this will impact its production.
Your ideas are welcome.
Again, I posted what I found in the official news, so please respond responsibly.