RMP Energy Announces $50.0 Million Equity Financing

CALGARY, ALBERTA–(Marketwired – Oct. 24, 2013) –

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RMP Energy Inc. (“RMP” or the “Company“) (TSX:RMP) is pleased to announce that it has entered into an equity financing agreement on a “bought deal” basis (the “Equity Financing“). Pursuant to the terms of the Equity Financing, RMP will issue, on an underwritten basis, approximately 8.2 million common shares at a price of $6.10 per share for total gross proceeds of approximately $50.0 million. The Equity Financing will be underwritten by a syndicate of underwriters led by GMP Securities L.P., including, Peters & Co. Limited, Macquarie Capital Markets Canada Ltd., National Bank Financial Inc., Cormark Securities Inc., FirstEnergy Capital Corp., Scotia Capital Inc. and CIBC World Markets Inc. The Equity Financing is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange. The common shares will be offered in all provinces of Canada (except Quebec), by way of a short form prospectus. The Equity Financing is expected to close on or about November 13, 2013.

The net proceeds of Equity Financing will be used to fund an expanded fourth quarter 2013 capital expenditures program, which includes the previously-announced Acquisition (disclosed and defined within the Company’s October 21, 2013 news release) and additional exploration and development spending primarily directed towards accelerated delineation of RMP’s Montney oil pool at Ante Creek in West Central Alberta as industry drilling activity offsetting the Company’s acreage has intensified as of late. Additional capital will also be directed towards expanded step-out drilling activities at Waskahigan.

The Company’s total capital program for 2013 is now forecasted to aggregate to approximately $181 million, comprised of an approximate $100 million exploration and development program, $13.5 million for the Ante Creek land expansion in May 2013, approximately $38 million for the aforementioned Acquisition, and approximately $29 million of capital expenditures associated with the Ante Creek pipeline project and infrastructure expansion (with such costs anticipated to be incurred by December 31, 2013). Estimated net debt at December 31, 2013, after giving effect to the Equity Financing and the increased 2013 capital budget, is approximately $108 million. After giving effect to the Equity Financing, RMP will have 117.8 million common shares issued and outstanding.

The common shares offered under the Equity Financing have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements thereof. This news release shall not constitute an offer to sell or the solicitation of any offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Reader Advisories

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 news release contains forward-looking information relating to: the closing date of the Equity Financing, the Company’s 2013 Capital Budget, including incremental exploration and development spending in the fourth quarter of 2013 and the capital expenditures anticipated to be incurred in 2013 associated with the Ante Creek pipeline project and infrastructure expansion; and estimated December 31, 2013 net debt. 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; volatility in market prices for crude oil, natural gas and NGLs; foreign exchange currency and interest rate fluctuation; stock market volatility and market valuations; 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.

Net debt refers to outstanding bank debt plus working capital deficit or less any working capital surplus (excludes current unrealized amounts pertaining to risk management commodity contracts). Net debt is not a recognized measure under International Financial Reporting Standards (“IFRS”) and does not have a standardized meaning.