RAGING RIVER EXPLORATION
If you wanted a template for the perfect junior oil producer, it would be hard to do better than Raging River Exploration. To be a truly exceptional company, there are three key elements the company must have: Great assets; a rock-solid balance sheet; and, most importantly, a proven management team. Raging River has all three and then some.
Raging River’s CEO, Neil Roszell, is a serial entrepreneur. Creating value for shareholders seems to be in his DNA. That value creation can also be tied to the fact that Roszell is a significant shareholder in the companies that he builds. If you want results, you need to have the proper incentives.
Prior to forming Raging River, Roszell built and sold Wild River Resources, which was focused on the Shaunavon formation in Saskatchewan, to Crescent Point Energy. He must have enjoyed the experience, as he did exactly the same thing with a second company called Wild Stream Exploration in the same play, to the same acquirer.
While some companies have disappeared and most companies are struggling, Raging River has stood up very well through this oil crash, both in its stock price and operationally. An argument could be made that the company will actually benefit from this oil crash over the long run given the acquisitions it has been able to make because of it. Raging River has been able to do this because it went into the crash with one of the best balance sheets in the industry. It’s almost as if Roszell was aware that the oil business is a cyclical one, and built a balance sheet to withstand it.
Another key for Raging River is that it remains focused exclusively on the Viking light oil play which is a perfect fit for a junior producer. The Viking’s shallow setting allows for low-cost drilling, fast payouts and top-tier economics. The company has 4,000 future drilling locations, which should keep it going for another 16 years with major upside coming from waterflooding.
RAGING RIVER CEO NEIL ROSZELL