CALGARY, ALBERTA -- (Marketwired) -- 11/26/13 -- RMP Energy Inc. ("RMP" or the "Company") (TSX: RMP) is pleased to provide completion results from recent Ante Creek drilling activity. In the fourth quarter, RMP successfully drilled and completed two additional, 100% working interest Montney formation horizontal oil wells located at 1-25-66-24W5M and 4-26-66-24W5M. Both wells underwent successful 23 stage hydraulic fracture stimulations. Results are as follows:
-- The 1-25 well recovered all of the fracture stimulation fluid during the
initial 64 hour flow back. During the extended 64 hour production test,
after recovering the fracture fluid, the 1-25 well produced 6,180 bbls
of 35 degree API light oil for an average daily rate of approximately
2,320 bbls/d and 1.6 MMcf/d of associated solution gas for an oil
equivalent rate of 2,580 boe/d. The 1-25 well flowed at an average
surface wellhead pressure of 3,500 Kpa (508 psi). Please refer to
important Reader Advisories at the end of this news release.
-- The 4-26 well recovered all of the fracture stimulation fluid during its
initial 64 hour flow back. During the 29 hour production test, after
recovering the fracture fluid, the 4-26 well produced 1,500 bbls of 35
degree API light oil for an average daily rate of approximately 1,240
bbls/d and 2.6 MMcf/d of associated solution gas for an oil equivalent
amount of approximately 1,675 boe/d. The 4-26 well flowed at an average
surface wellhead pressure of 5,200 Kpa (754 psi). Please refer to
important Reader Advisories at the end of this news release.
RMP has now successfully drilled and completed a total of eight (8.0 net), high rate Montney horizontal oil wells in the Ante Creek area. The Company's Ante Creek field is currently production restricted due to third-party constraints on existing gas processing infrastructure. Consequently, only three wells are presently producing at restricted rates with wellhead chokes and no artificial lift support. In order to alleviate the gas capacity constraints, RMP is presently installing a pipeline inter-connect between its Ante Creek and Waskahigan properties and is expanding its Ante Creek surface field facilities to facilitate increased solution gas handling to 22 MMcf/d and oil handling capacity through the oil pipeline to about 10,000 bbls/d. Barring any unforeseen delays, the pipeline inter-connect and related field equipment expansion is scheduled to be in-service by the end of February 2014.
At Ante Creek, RMP has a significant asset 'footprint' in the area and holds 36.75 gross sections (35.72 net) of land.
Abbreviations ---------------------------------------------------------------------------- bbl barrel 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 ----------------------------------------------------------------------------
Reader Advisories
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: the anticipated in-service date of RMP's Ante Creek-to-Waskahigan pipeline interconnect and related infrastructure expansion and the associated natural gas and oil handling volume capacities. 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.
Contacts:
RMP Energy Inc.
John Ferguson
President and Chief Executive Officer
(403) 930-6303
john.ferguson@rmpenergyinc.com
RMP Energy Inc.
Dean Bernhard
Vice President, Finance and Chief Financial Officer
(403) 930-6304
dean.bernhard@rmpenergyinc.com
www.rmpenergyinc.com
