RMP Energy (RMP: TSX) has broken out of its trading range, following two days of significant insider buying. Based in Alberta, RMP Energy is a junior upstream oil and gas producer. The company’s base is West Central Alberta’s Ante Creek, Waskahigan, Grizzly, Kaybob and Pine Creek areas.
RMP Energy – 1 Year Stock Chart
After trending lower for many months, RMP broke above its moving average to a high of $0.82 per share Thursday. The company’s 50 Day Moving Average is $0.75 per share. Its recent move comes on the back of significant insider buying by Josh Young.
On January 4th of this year it was reported that Young was appointed to the board at RMP Energy Inc. as an independent director. Young is the portfolio manager for Houston-based Bison Interests LLC, which handles more than $65 million in oil and natural gas investments and as of January 4th owned more than 11.5 million RMP common shares.
source: http://www.oilandgasinvestor.com/josh-young-joins-board-canadas-rmp-energy-1456711
Note: Young is a co-founder of Bison.
Josh Young from Bison adds to his RMP Energy Position
Young bought over 700,000 shares in the month of March, excluding his second most recent purchase on March 31st. It was on this day, Young acquired 350,000 shares at $0.699 according to insidertracking.com. The next trading day, which fell on Monday, April 3rd, Young bought 478,100 shares at $0.72 per share.
Energy companies have finally caught a bid in recent sessions as a shutdown at Syncrude’s northern Alberta oilsands facility is causing production shortages for the first time in months. Despite a gargantuan supply glut in the U.S., trouble in the oilsands has pushed Western Canada Select to the highest level in almost two years. Any market disruption is good news for producers, including RMP Energy and its west-central Alberta production. Market participants have been hopeful in attempting to time the bottom; but, with a supply deficit not forecasted until late-2018 and new production coming on constantly, it has been a tough go in the oil stocks. Syncrude’s shutdown has offered a spark in the price of oil…
On March 21st, RMP Energy provided an operations update highlighting its Elmworth Delineation Success. It also featured year-end reserves and fiscal 2016 financial results. Below is a short excerpt:
“At Waskahigan in the first quarter of 2017, RMP successfully drilled and completed a 100% working interest Montney ‘step-out’ horizontal oil well (13- 30 -63-23W5), located on the western flank of the Company’s acreage position. The flow test result from the recently completed hybrid slick-water operation was strong. Production flow testing was for a 200-hour period (approximately 8 days). Over the last 72 hours of the production test, the 13-30 well tested at an average rate of approximately 760 bbls/d of 40-degree API crude oil and 1.5 MMcf/d of associated sweet solution gas for an oil-equivalent rate of approximately 1,000 boe/d. RMP expects to have the 13-30 well tied into company-owned infrastructure and placed on-production later this week. The Company expects to book and assign proved developed reserves to this well and recognize proved undeveloped and probable undeveloped reserves for future locations offsetting the 13-30 well, none of which were booked or assigned in the year-end 2016 independent reserves report.”
Below are the highlights from the company’s year-end 2016 reserves:
- “Total proved plus probable reserves at December 31, 2016 were 27.7 million boe. The Ante Creek Disposition (9.8 million boe), fiscal 2016 production (2.9 million boe) and a minor Pine Creek divestiture (1.2 million boe), partially offset by positive additions (net of revisions) of 3.1 million boe, resulted in lower reserves reported at year-end 2016 as compared to 38.5 million boe of proved plus probable reserves at December 31, 2015. Adjusting for production and the reserves disposed with the Ante Creek Disposition, total proved plus probable reserves increased year-over-year.
- Total proved reserves at December 31, 2016 were 16.4 million boe. The Ante Creek Disposition (6.6 million boe), fiscal 2016 production (2.9 million boe) and a minor Pine Creek divestiture (0.7 million boe), partially offset by positive additions (net of revisions) of 1.2 million boe, resulted in lower reserves reported at year-end 2016 as compared to 25.3 million boe of proved reserves at December 31, 2015. Adjusting for production and the reserves disposed with the Ante Creek Disposition, total proved reserves increased year-over-year.
- Total proved developed producing reserves at December 31, 2016 were 6.8 million boe, as compared to 15.1 million boe at December 31, 2015. The Ante Creek Disposition (6.2 million boe), a minor Pine Creek divestiture (0.1 million boe) and fiscal 2016 production (2.9 million boe) were partially offset by positive additions (net revisions) of approximately 1.0 million boe. Adjusting for production and the reserves disposed with the Ante Creek Disposition, total proved developed producing reserves increased year-over-year.
- RMP’s net asset value at December 31, 2016 is estimated at $2.19 per share (discounted at 10%). Refer to the detailed calculation under the Net Asset Value heading hereafter.
- Booked and assigned initial reserves at Elmworth (formerly Gold Creek) at December 31, 2016, of 4.7 million boe proved plus probable and 1.5 million boe proved.”
Click here to visit RMP Energy’s website and to read the entire press release.
Junior oil and gas companies such as RMP Energy are working to find their footing in an ever competitive market. RMP is growing its reserves and enjoyed significant insider buying in the past few weeks. Now, if only the price of oil could stabilize or, better yet, move a little bit higher.
