$95 million on its available bank facility
The Calgary, Alberta-based oil and gas company expects its year-end 2015 debt position will remain unchanged from its estimated year-end debt this year. RMP is currently drawn about $95 million on its available bank facility, which has a borrowing limit of $175 million.
RMP said it will remain disciplined with its capital budget in 2015 as it continues to monitor commodity prices over the coming months, and that it may make adjustments as conditions warrant.
Despite the crude oil price weakness, however, its estimated $150 million capital budget is anticipated to lead to 30 percent year-over-year production growth from fiscal 2014. Fiscal 2015 production is expected to average 15,500 barrels of oil equivalent per day (boe/d), driven by its Montney plays at Ante Creek, Waskahigan and Grizzly in west central Alberta.
Of the $150 million alloted for next year, about $93 million will go towards drilling and completion costs, with additional funds budgeted for well site tie-ins, gathering lines, infrastructure and seismic data.
At Ante Creek, the company is planning to drill 14 wells, with an additional six wells planned at Waskahigan and two wells at Grizzly.
RMP said the current gas capacity constraints at Ante Creek are expected to be resolved upon the start-up of a second solution gas handling facility, anticipated by the end of March.
Dundee Capital Markets reiterated its buy rating on the company, with a target price of $7.75, noting that a cash neutral budget that can achieve 30 percent production growth is a rarity in today's marketplace of falling crude.