CALGARY, ALBERTA–(Marketwired – Jan. 22, 2014) – RMP Energy Inc. (“RMP” or the “Company“) (TSX:RMP) is pleased to announce and provide the following:
For the fourth quarter of 2013, RMP’s production is estimated at approximately 7,220 boe/d (weighted 55% light oil and NGLs), which represents a record level of quarterly production for the Company and a 9% increase over the preceding third quarter level of 6,639 boe/d. RMP’s annual average daily production for fiscal 2013 is estimated at approximately 6,860 boe/d, exceeding both its originally-guided 2013 production target of 6,000 to 6,500 boe/d and its subsequently upward revised guidance of 6,800 boe/d. For fiscal 2014, the Company is forecasting daily production to average 10,000 boe/d (weighted 68% light oil and NGLs), a projected 46% increase over fiscal 2013. Fourth quarter 2014 production is forecasted to exceed 12,000 boe/d, weighted 70% light oil and NGL’s.
At Grizzly, to the southeast of Waskahigan, RMP successfully drilled and completed an exploration well located at 03/10-29-62-22W5/02 (100% working interest), with flow test results the Company believes confirms the existence of a new Montney pool. The 10-29 exploration well was drilled to a total measured depth of 4,405 metres, with 1,945 metres of horizontal section. Completion operations encompassed a 28 stage fracture stimulation (average 10 tonnes per stage). Over the first 84 hour flow back, the well recovered all of the fluid used to fracture the well (approximately 6,000 bbls). During the subsequent 24 hour new oil production test, the 10-29 well produced approximately 2,100 boe/d, encompassing 1,100 bbls/d of 41 degree API crude oil and approximately 6.0 MMcf/d of natural gas with an average flowing tubing wellhead pressure of 900 psi. Please refer to important Reader Advisories at the end of this news release. The Company is working on the tie-in of the 10-29 well into third-party area infrastructure.
At Grizzly, the Company holds a 100% working interest on 12.25 sections (7,840 acres) of land, providing RMP with another Montney resource project for future delineation and development.
Ante Creek Pipeline and Infrastructure Expansion Update
RMP is making good progress with the installation of its Ante Creek-to-Waskahigan pipeline inter-connect and the associated expansion of field facilities at the Ante Creek oil battery, despite substantial snow accumulation in the area. To-date, two-thirds of the 35 kilometre pipeline (north and central leg sections) is at final stages of pressure testing and surface right-of-way re-contouring and restoration. The pipe for the remaining third leg of the pipeline (south section) is at various stages of installation and is expected to be pressure tested in early-February 2014.
At the Ante Creek 4-36 oil battery site, the Company has taken physical delivery of all the major equipment and vessels and are presently in the process of being connected to existing oil battery infrastructure. Barring any unforeseen delays, the pipeline inter-connect and related field equipment expansion is scheduled to be fully in-service by March 1, 2014, as previously disclosed. Please refer to the Company’s December 12, 2013 news release for further details.
Addition details regarding the Company are contained within its corporate presentation available on its website at www.rmpenergyinc.com.
|bbl or bbls||barrel or barrels||Mcf/d||thousand cubic feet per day|
|Mbbl||thousand barrels||MMcf/d||million cubic feet per day|
|bbls/d||barrels per day||MMcf||Million cubic feet|
|boe||barrels of oil equivalent||Bcf||billion cubic feet|
|Mboe||thousand barrels of oil equivalent||psi||pounds per square inch|
|boe/d||barrels of oil equivalent per day||kPa||kilopascals|
|NGLs||natural gas liquids||WTI||West Texas Intermediate|
Any references in this news release to initial and/or final raw test or production rates and/or “flush” production rates are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will commence production and decline thereafter. These test results are not necessarily indicative of long-term performance or ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company.
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: estimated average daily production levels for fourth quarter 2013 and fiscal 2013 and forecasted average daily production levels for fourth quarter 2014 and fiscal 2014 and associated light oil and NGLs weighting; and the work-in-progress and in-service date timing of the Ante Creek-to-Waskahigan pipeline interconnect and associated expansion of field facilities at the Ante Creek oil battery. 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.
In this news release RMP has adopted a standard for converting thousands of cubic feet (“mcf”) of natural gas to barrels of oil equivalent (“boe”) of 6 mcf:1 boe. Use of boes may be misleading, particularly if used in isolation. The boe rate is based on an energy equivalent conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of the 6:1 conversion ratio, utilizing the 6:1 conversion ratio may be misleading as an indication of value.
Field operating income or field cash flow refers to realized wellhead revenue less royalties, operating expenses and transportation costs. Field netback is field operating income per barrel of oil equivalent. Field operating income and netback are not recognized measures under IFRS and does not have a standardized meaning.
RMP Energy Inc.
President and Chief Executive Officer
RMP Energy Inc.
Vice President, Finance and Chief Financial Officer