CALGARY, ALBERTA–(Marketwired – May 6, 2013) – RMP Energy Inc. (“RMP” or the “Company“) (RMP.TO) is pleased to report that based on the annual review of the borrowing base associated with the Company’s committed, extendible revolving bank credit facility, the two-bank lending syndicate (the “Lenders“) has increased the credit facility to $140 million from $110 million, a 27% increase.
The credit facility represents the maximum amount that can be borrowed by RMP and is primarily based on the Lender’s assessment and analysis of the Company’s proved oil and gas reserves, RMP’s results of operations, and the Lenders forecasted commodity prices. The next borrowing base re-determination is scheduled for November 2013. The Company has approximately $89 million presently drawn against the credit facility, providing for $51 million of un-utilized borrowing capacity, which further bolsters RMP’s financial flexibility.
The Company is scheduled to release its first quarter 2013 financial and operating results on Monday, May 13, 2013, after-market close.
The information in this news release contains certain forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “budget”, “plan”, “continue”, “estimate”, “approximate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “would” and similar expressions. More particularly and without limitation, this new release contains forward looking information relating to: current outstanding bank debt and un-utilized bank borrowing capacity and the timing of the release of RMP’s first quarter 2013 financial and operating results. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company’s control, including: the impact of general economic conditions; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are, interpreted and enforced; fluctuations in commodity prices and foreign exchange and interest rates; stock market volatility and market valuations; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry ; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves; and obtaining required approvals of regulatory authorities. The Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that the Company will derive from them. The Company’s forward-looking statements are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements.