CALGARY, ALBERTA–(Marketwired – July 16, 2014) – RMP Energy Inc. (“RMP” or the “Company“) (TSX:RMP) is pleased to announce another record level of quarterly production, a further increase to its fiscal 2014 production market guidance and an operations update.
Second Quarter 2014 Production Update and Increased 2014 Production Guidance
As a result of favorable field operating conditions during the second quarter providing for minimal oil trucking restrictions, RMP achieved a new record level of production for the second quarter of 2014, with an average daily production level of approximately 12,400 boe/d, weighted 57% light oil and NGLs. This represents a 34% increase over the preceding first quarter 2014 production of 9,229 boe/d and an 81% increase over the comparable second quarter 2013 production of 6,852 boe/d. With the Company exceeding its budgeted production level for the first half of this year, RMP is increasing its fiscal 2014 average daily production forecast to approximately 11,500 boe/d, from its originally-guided level of 10,000 boe/d and its previously-increased production target of 10,500 boe/d. The Company expects to release its second quarter 2014 financial results at the close of business on August 12, 2014.
During the second quarter of this year, RMP successfully drilled four additional, 100% working interest Montney formation horizontal oil wells at Ante Creek in West Central Alberta. These wells are at various stages of completion testing and surface lease tie-in. The Company has now drilled a total of seventeen (17.0 net) Ante Creek Montney oil wells and is presently drilling its eighteenth horizontal well in the area. Currently, a total of only ten wells are on-production at Ante Creek. Since bringing on-stream the discovery well in August 2012 (4-35-66-24W5), over 1.80 million barrels of light oil has been produced from the Company’s Ante Creek acreage (2.44 million boe including associated solution gas). With the continued strong field production performance and recent drilling success at Ante Creek, RMP is currently evaluating the potential for facilities expansion in the area. At Waskahigan, RMP recently drilled a Montney horizontal well (1.0 net) located at 16-8-64-23W5, with the completion planned for this week, and is currently drilling a follow-up horizontal well at 15-8-64-23W5.
|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: second quarter 2014 average daily production and associated crude oil and NGLs weighting; timing of release of second quarter 2014 financial results; updated market guidance for average daily production for fiscal 2014; and, total barrels of oil and boe produced from the Company’s Ante Creek field. 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