RMP ENERGY INC T.RMP

To Resilience: Production Decline Rate, Growth, Debt Dec 17

[George98]

Resilience, thanks for your post. However, RMP's Gold Creek is largely uncharted land, and there is only one producing well in RMP's acreage. How can you be sure that RMP's Gold Creek wells will produce 2,000 and 3,000 boepd?

What about the 15% quarterly decline rate? Aren't you concerned about it? It seems that the Waskahigan production has well above average decline rate.


And what do you think about RMP's debt by December 2017? RMP will spend $45 million in 2017 but they will have to borrow money because the operating cash flow and existing cash are not enough. My estimate is that RMP will exit 2017 with about $20-$25 million debt.  Ideas?

[Seppelt]

George, Overall, Resilience is correct, Gold Creek production is not included. Not because the company is conservative, they are simply not in a position to speculate on an asset which has no current or past production.   Not sure about production figures from the first 2 Gold Creek wells (if brought on stream before the end of Q1). Is it based on initial production (IP30?) or average