CALGARY, ALBERTA–(Marketwired – Jan. 23, 2017) – RMP Energy Inc. (“RMP” or the “Company“) (TSX:RMP) announces today the appointment of a President, a new Chairman of the Board and provides an update on its board of directors and its field operations.
New President and Chairman of the Board Appointments
The Company is pleased to announce that its board of directors has appointed Mr. Jon Grimwood as the President of RMP, effective February 28, 2017, upon the previously announced retirement of Mr. John Ferguson. Mr. Grimwood has been Vice President, Exploration of RMP since May 2011 and has been instrumental in assembling the Company’s Montney acreage position in West Central Alberta. Mr. Grimwood stated, “I am pleased to have the opportunity to move our business plan forward while continuing to develop our exceptional suite of Montney assets for the benefit of all shareholders.” Mr. Grimwood began his career at Poco Petroleums Ltd. and has held various positions of increased responsibility and seniority at Burlington Resources Canada Ltd., Rider Resources Ltd., Galleon Energy Inc. and RMP Energy Ltd. Mr. Grimwood earned a Bachelor of Science from Brandon University, a Masters Degree in Earth Sciences from the University of Waterloo and is a registered member of APEGA
The Company also announces that Mr. Josh Young, a recently appointed independent director of RMP, has succeeded Mr. Craig Stewart as the Company’s non-executive Chairman of the board. Mr. Young is the portfolio manager for Bison Interests LLC (“Bison”), an investment firm specializing in oil and gas investments. Bison currently owns more than 11.5 million common shares of RMP, over 7.5% of the outstanding shares of the Company. Mr. Young commented, “I am honored to be appointed Chairman of RMP. I am focused on alignment between the Company and its shareholders, which should be well-served by the highly-skilled incoming President, Jon Grimwood, and his strong management team”.
Mr. Stewart will remain an independent member of the Company’s board of directors. In addition to this Chairman transition, Mr. John Brussa has retired as a director of RMP. The Company would like to express its appreciation and gratitude to Mr. Brussa for his service and counsel as a RMP board member since May 2011.
The Company’s board of directors now consists of: Messrs. Josh Young, Doug Baker, Andrew Hogg, Jim Saunders, Craig Stewart and Lloyd Swift.
As outlined in RMP’s October 31, 2016 news release, the Company has commenced the delineation of the areal extent of the Middle Montney Formation trend at Gold Creek in West Central Alberta (now known as Elmworth by the Alberta Energy Regulator), in anticipation of proving-up its significant land base for future development. As planned, RMP has drilled a 100% working interest exploration horizontal well at 8-25-68-4W6. This well was recently fracture stimulated in the Middle Montney interval and is currently undergoing clean-up and production flow testing operations. RMP is currently drilling its third Middle Montney well (4-18-68-2W6) at Elmworth/Gold Creek, from the same surface lease pad as its discovery well (3-22-68-3W6), which was drilled and completed in 2016. As disclosed last year, the 3-22 exploration well at the end of its 118 hour clean-up and production test flowed at approximately 300 bbls/d of 40 degree API crude oil and 5.0 MMcf/d of associated sweet solution gas for a total of 1,130 boe/d with a final bottom hole flowing pressure of approximately 17,000 kPa. At Elmworth/Gold Creek, the Company has accumulated a large undeveloped land base consisting of 78 (77.5 net) sections (49,920 gross acres) of operated acreage.
In order to facilitate the tie-in and processing of anticipated future production additions at Elmworth/Gold Creek, RMP has entered into gas processing and oil transportation agreements with a well-capitalized, regional mid-stream service provider, which owns and operates the Patterson Creek Gas Plant. The agreements encompass an area dedication and are not under-pinned by take-or-pay commitments. The mid-stream company is in the process of installing a gathering system, which is expected to be completed in April 2017, and will include both natural gas and crude oil pipeline legs. This gathering system will connect their existing infrastructure to RMP’s oil battery facility at 2-23-68-3W6, which is presently under-construction by RMP with expected commissioning in May 2017. The Company’s Elmworth/Gold Creek natural gas will be processed at the Patterson Creek Gas Plant, which will undergo expansion construction this year with an expected capacity level of 150 MMcf/d by the end of this year. This gas plant will provide pipeline connections for sales gas into both the TransCanada and Alliance gas systems and additionally downstream will connect to Pembina’s Karr terminal for crude oil sales.
At Waskahigan in West Central Alberta, the Company is currently drilling a 100% working interest Montney horizontal oil well (13-30-63-23W5). A hybrid slick water completion operation on this well is scheduled for early February 2017. For this year, the Company is budgeted to drill a total of four (4.0 net) Montney horizontal wells at Waskahigan.
Overall, anticipated production additions from the Company’s modest Waskahigan drilling program in 2017 is expected to maintain corporate base production levels of 3,200 to 3,300 boe/d from Waskahigan and its other non-core areas, collectively (approximately 35% crude oil and NGLs). Additionally, the tie-in of the Company’s Elmworth/Gold Creek 3-22 well in conjunction with successful follow-up drilling and completion at Elmworth/Gold Creek, is expected to augment RMP’s base production profile. The Company expects to provide a further progress update on its Elmworth/Gold Creek infrastructure commissioning in March 2017.
Fiscal 2016 Financial and Reserves Reporting
The Company is scheduled to release its fiscal 2016 audited consolidated financial statements, associated Management’s Discussion and Analysis, and its year-end reserves information on March 21, 2017.
RMP Energy Inc. is a Montney-focused crude oil and natural gas producer, based in Calgary, Alberta. RMP’s common shares trade on the Toronto Stock Exchange under the ticker “RMP”. For additional information on the Company, please visit RMP’s website at: www.rmpenergyinc.com.