This part appeals the most to me - the comparison to CVN & how much better RMP is compared to risk/reward
It is quite unique for companies to have the opportunity to test such a large and prospectively valuable target for such a small investment.
The cost of exploration in this proven and developed region is far more reasonable than other areas of the world, particularly in comparison to similar sized targets. For example, shares in Carnarvon Resources (ASX: CVN) soared in July/August due to the success of the Dorado-1 oil discovery, although the cost of that well was $100 million. The size of that prize was 150MMBls (30MMBbls net to CVN) yet success boosted their market cap by over $250m.
RMP is poised to test a 400MMBO target (106MMBls net to RMP after royalties) for US$5.25 million. Depending on how one chooses to value a discovered barrel of shallow, conventional, light oil that is close to infrastructure and development, it could potentially be worth $5-10 a barrel to RMP.
RMP Price at posting:
5.8¢ Sentiment: Buy Disclosure: Held
