From Scotia
Latest Research (14 August 2017)
OUR TAKE: RMP delivered Q2/17 results in line with expectations and 30-day IP rates from its first two Elmworth/Gold Creek Montney wells. The initial well results are in line with the previously released test rates, but moderately behind our 615 mboe type curve. In our view, the play has potential, but further results will be necessary to determine its ultimate productivity and extent. We expect that the members of the incoming management team will utilize their experience developing other Montney sub plays to evaluate the play and review the development plan. We will be watching for the company's updated business plan as a key data point for potentially revising our view on the stock. We believe the ultimate success of the new team will depend on how it shapes the company's strategic plan and its ability to access external capital to delineate and develop its asset base (and potentially pursue asset additions to move it toward critical mass).