CALGARY, ALBERTA–(Marketwired – Feb. 27, 2014) – RMP Energy Inc. (“RMP” or the “Company“) (TSX:RMP) is pleased to provide the following operations update:
Ante Creek, West Central Alberta
Thus far this year, RMP has successfully drilled and completed two additional, 100% working interest Montney formation horizontal oil wells located at 8-25-66-24W5 and 9-25-66-24W5. Both wells underwent multi-stage hydraulic fracture stimulations. Completion results are as follows:
- The 8-25 well recovered all of the fracture stimulation fluid during the initial 50 hour frac oil clean-up. Within the 82 hour production test, after recovering the fracture fluid, the 8-25 well produced 11,000 bbls of 38 degree API light oil. During the last 24 hours of the production test, the 8-25 well produced at an average daily rate of approximately 3,000 bbls/d and 1.4 MMcf/d of associated solution gas for an oil equivalent rate of approximately 3,230 boe/d, with an average surface wellhead pressure of 400 psi. Please refer to important Reader Advisories at the end of this news release.
- The 9-25 well recovered all of the fracture stimulation fluid during its initial 49 hour flow back. Within the 56 hour production test, after recovering the fracture fluid, the 9-25 well produced 6,370 bbls of 38 degree API light oil. During the last 24 hours of the production test, the 9-25 well produced at an average daily rate of approximately 2,700 bbls/d and 1.8 MMcf/d of associated solution gas for an oil equivalent rate of approximately 3,000 boe/d, with an average surface wellhead pressure of 550 psi. Please refer to important Reader Advisories at the end of this news release.
The Company has now drilled and completed a total of ten (10.0 net) high deliverability Montney oil wells in the Ante Creek area and is presently drilling two (2.0 net) additional horizontal wells (8-36-66-24W5 and 1-22-66-24W5). RMP expects to conduct completion operations on these two wells in March 2014.
Waskahigan, West Central Alberta
In the South Waskahigan area in 2014, RMP successfully drilled and completed a Montney long-reach horizontal well located at 3-15-63-23W5/02 (100% working interest). As a result of this operation, the Company earned two sections of land through a farm-in arrangement. The 3-15 well was drilled to a total measured depth of 5,082 metres, with 2,700 metres of horizontal section. Completion operations encompassed a 39 stage fracture stimulation (average 10 tonnes per stage). Over the initial 171 hour clean-up flow back, the well recovered all of the fracture stimulation fluid (10,290 bbls). During the last 24 hours of a 45 hour new oil production test, the 3-15 well produced an average 310 bbls/d of 39 degree API light oil and 2.6 MMcf/d of natural gas for an oil equivalent rate of approximately 750 boe/d, with an average flowing tubing wellhead pressure of 340 psi. The 3-15 well’s flow test results are encouraging and further delineation drilling will be undertaken in the future to better access the targeted Montney seismic anomaly. Please refer to important Reader Advisories at the end of this news release.
Grizzly, West Central Alberta
At Grizzly, to the southeast of Waskahigan, RMP expects to have its 03/10-29-62-2W5/02 exploration well tied-in to an area operator’s oil battery facility and producing on or about March 1, 2014. The 10-29 well was drilled and completed in early-January 2014 with flow test results disclosed in the Company’s January 22, 2014 news release. At Grizzly, RMP holds a 100% working interest on 13.25 sections of land, providing the Company with another Montney resource project for future delineation and development.
Ante Creek Pipeline and Infrastructure Expansion
The construction of the Company’s Ante Creek-to-Waskahigan pipeline inter-connect and related production facilities has been completed with project commissioning underway. RMP is presently flowing associated solution gas through the system and trucking the crude oil to a Fox Creek sales terminal. The oil line is waiting on the crude oil pipeline operator to complete the installation of a larger pump unit at the Waskahigan 12-7 oil battery. In addition to trucking crude oil, RMP has commenced oil pipe fill into the eight-inch, 35 kilometre line from the Ante Creek 4-36 oil battery to Waskahigan, in preparation for commercial start-up. It is anticipated that the Company will be delivering oil for sale through the pipeline into the downstream receipt point on or about March 1, 2014. Please refer to the Company’s December 12, 2013 news release for further market guidance details.
Fiscal 2013 Financial Results and Year-End 2013 Reserves
RMP is scheduled to release its audited consolidated financial statements for the year ended December 31, 2013 and year-end 2013 reserves information on March 19, 2014.
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|
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|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, clean-up flow back or production test 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 timing of the completion operations on two Ante Creek wells and on-stream date of the Grizzly 10-29 well; undertaking further delineation drilling at South Waskahigan; 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.
RMP Energy Inc.
President and Chief Executive Officer
RMP Energy Inc.
Vice President, Finance and Chief Financial Officer