CALGARY, ALBERTA–(Marketwired – April 24, 2014) – RMP Energy Inc. (“RMP” or the “Company“) (TSX:RMP) is pleased to announce record average daily production for the first quarter of 2014 and increased fiscal 2014 production market guidance.
First Quarter 2014 Production Update
On March 1, 2014, RMP commissioned its expanded Ante Creek battery facility and commenced delivering light oil and associated natural gas into the downstream sales receipt point through its Ante Creek-to-Waskahigan pipeline. This infrastructure start-up has enabled the Company to achieve a record level of production in the first quarter of 2014, with an average daily production level of 9,229 boe/d, weighted 60% light oil and NGLs. This represents a 27% increase over the fourth quarter 2013 production of 7,266 boe/d. The Company expects to release its first quarter 2014 financial results at the close of business on May 14, 2014.
Increased 2014 Production Market Guidance
As a result of a stronger first quarter production level, RMP is increasing its fiscal 2014 average daily production forecast to approximately 10,500 boe/d. Production during the second half of this year is budgeted to exceed 12,000 boe/d.
To-date in the month of April 2014, RMP’s corporate average daily production has exceeded 12,000 boe/d with only six of twelve Ante Creek wells on-production for the majority of the month to-date. As a result of downstream sales pipeline capacity constraints, the Company continues to truck a significant portion of its crude oil from its Ante Creek battery in excess of the deliveries though its pipeline. Notwithstanding favorable surface field conditions in April, the Company is tempering a larger increase in its forecasted annual average production volumes pending the end of ‘spring break-up’ through June.
The Company announces the appointment of Mr. Greg Kubat as Vice-President Engineering, effective April 29, 2014. Mr. Kubat is a professional engineer with over 24 years of experience in the Canadian oil and gas industry. He currently holds an executive role with a private oil and gas company.
Annual Shareholders Meeting
RMP’s annual meeting of shareholders is scheduled for 3:00 p.m. on Thursday, June 5th, 2014 in the McMurray Room of the Calgary Petroleum Club, located at 319 – 5th Avenue S.W., Calgary, Alberta.
|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||GJ/d||Gigajoules per day|
|WTI||West Texas Intermediate|
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: first quarter 2014 average daily production and associated crude oil and NGLs weighting; timing of release of first quarter 2014 financial results; updated production market guidance for average daily production for fiscal 2014 and the second half of 2014; and estimated average daily production to-date in the month of April 2014. 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