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Press release from Marketwire

RMP Energy Provides Operational Update

Thursday, October 13, 2011

RMP Energy Provides Operational Update17:21 EDT Thursday, October 13, 2011CALGARY, ALBERTA--(Marketwire - Oct. 13, 2011) - RMP Energy Inc. ("RMP" or the "Company") (TSX:RMP) is pleased to provide an operations update. At Waskahigan in West Central Alberta, the Company continues to successfully apply horizontal drilling and multi-stage fracturing techniques to delineate and exploit its 100%-owned Montney oil pool. Nine (9.0 net) horizontal wells have been successfully drilled to-date in 2011 with a tenth well currently undergoing drilling operations. Eight wells have been completed and tested with a ninth well scheduled to be completed later this week. This brings the Company's total wells drilled in Waskahigan area to fourteen (14.0 net). Completion test results on recently-drilled Montney wells continue to be quite encouraging. The Company's most recently completed and tested Waskahigan horizontal well located at 1-3-64-23W5 recovered all of its load fluid during flow-back clean-up and finished its 24 hour production test on October 12, 2011. During this 24 hour test period, the 1-3 well produced 1,535 barrels per day ("bbls/d") of new oil with a gas-oil-ratio ("GOR") of 1,282 standard cubic feet per bbl ("scf/bbl"), for a total of 1,863 barrels of oil equivalent per day ("boe/d") at a flowing wellhead tubing pressure of 6,300 kPa (910 psi). The gravity of the oil produced was 40.5 degree API. The 1-3 well, based on test rate performance and flowing wellhead pressure, is the strongest Montney well drilled and completed to-date on the Company's Waskahigan acreage. RMP anticipates this well to be tied-in and brought on-stream in early November 2011.RMP also recently completed two other wells at Waskahigan, located at 1-26-63-23W5 and 13-27-63-23W5. The 1-26 well finished its initial 24 hour production test on October 6, 2011 following flow-back clean-up. During the 24 hour test period, the well produced 1,202 bbls/d of new oil at a GOR of 1,060 scf/bbl, for a total of 1,413 boe/d at 4,000 kPa (580 psi) flowing tubing pressure. The gravity of the oil is 42 degree API. The 1-26 well is scheduled to be brought on-stream in early-November 2011. With regards to the 13-27 well, it was placed on-production October 8, 2011 after recovering 89% of its load oil. The well produced for a total of 44 hours before being shut-in to await the installation of artificial lift. During the 44 hour production period, the well's estimated production was 230 bbls/d with a GOR of 5,300 scf/bbl for a total of 434 boe/d at 3100 kPa (450 psi). Ninety-eight percent of the load oil has now been recovered, with a gravity of 41 degree API.In the month of September 2011, based on field estimates, the Waskahigan field produced approximately 925 boe/d (including 560 bbls/d of light crude oil), relatively unchanged from the level produced in the month of August 2011. Commissioning and start-up of RMP's company-owned infrastructure, which will encompass an oil battery, compressor facility and gathering system with initially-designed oil processing capacity of 2,500 bbls/d, is expected to occur during the week of October 24, 2011 following completion of sales pipeline inlet connections. Corporately, RMP's third quarter 2011 average daily production is expected to approximate 3,400 boe/d, weighted 76% natural gas and 24% light oil and NGL's, representing an 8% increase over the preceding second quarter 2011 output level of 3,143 boe/d. The Company's fourth quarter 2011 production will be impacted as a result of an unscheduled plant outage at the mid-stream-operated Kaybob South #3 Gas Plant ("K3 Gas Plant"). RMP was recently notified by the operator of the K3 Gas Plant that a mechanical failure had occurred with the plant's sulphur condenser. The K3 Gas Plant has been shut down and is expected to re-start after repairs are completed, which presently is anticipated to take approximately one week. Assuming this field disruption is one week in duration, the overall production impact to the Company's reported fourth quarter 2011 production is expected to be approximately 100 boe/d.AbbreviationsCrude Oil and Natural Gas Liquids Natural Gas and Natural Gas Liquidsbbl barrel Mcf/d thousand cubic feet per day Mbblthousand barrelsNGLs natural gas liquids bbls/d barrels per day MMcfmillion cubic feetboe barrels of oil equivalent Bcfbillion cubic feetMboethousand barrels of oil equivalentpsipounds per square inchboe/d barrels of oil equivalent per day kPakilopascals Reader Advisories Any references in this news release to initial and/or final 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. Additionally, such rates may also include recovered "load oil" fluids used in well completion stimulation. 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 news release contains forward-looking information relating to: the completion, tie-in and/or on-stream date of certain wells, the date of commissioning and start-up of RMP's company-owned infrastructure, average production for both the third and fourth quarters of 2011, the time that the K3 Gas Plant is expected to be shut-down and the effect of such shut-down on RMP's production. 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, reserves, resources and production data are commonly stated in barrels of oil equivalent ("boe") using a six to one conversion ratio when converting thousands of cubic feet of natural gas ("mcf") to barrels of oil ("bbl") and a one to one conversion ratio for natural gas liquids ("NGLs"). Such conversion may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.FOR FURTHER INFORMATION PLEASE CONTACT: Craig StewartRMP Energy Inc.Executive Chairman(403) 930-6302craig.stewart@rmpenergyinc.comORJohn FergusonRMP Energy Inc.President and Chief Executive Officer(403) 930-6303john.ferguson@rmpenergyinc.comORDean BernhardRMP Energy Inc.Vice President, Finance and Chief Financial Officer(403) 930-6304dean.bernhard@rmpenergyinc.com