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Press release from Marketwire

RMP Energy Announces Increased Bank Line and Provides Operations and Hedging Update

Monday, November 28, 2011

RMP Energy Announces Increased Bank Line and Provides Operations and Hedging Update16:20 EST Monday, November 28, 2011CALGARY, ALBERTA--(Marketwire - Nov. 28, 2011) - RMP Energy Inc. ("RMP" or the "Company") (TSX:RMP) today provided the following updates: Bank Credit Facility The Company is pleased to report that based on a review of the borrowing base associated with the Company's committed, extendible revolving credit facility with its lending syndicate (the "Lenders"), the Lenders have increased the bank credit facility from $60.0 million to $80.0 million, representing a 33% expansion. The credit facility represents the maximum amount that can be borrowed and is primarily based on the Lender's assessment and analysis of the Company's proved oil and gas reserves, RMP's results of operations, and the Lenders forecasted commodity prices. The next borrowing base re-determination is scheduled for on or about May 31, 2012. The Company has approximately $18 million of bank debt presently drawn against its bank credit facility. Waskahigan Operations Update At Waskahigan, the Company continued with its successful drilling program in the Montney oil formation. Year-to-date, RMP has drilled and completed eleven (11.0 net) horizontal oil wells and is presently drilling its twelfth horizontal well. This brings the Company's total wells drilled in Waskahigan area since oil pool discovery to sixteen (16.0 net) with a 100% success rate. A seventeenth horizontal well is expected to be drilled by year-end. RMP has recently been granted regulatory approval to down-space to four horizontal wells per section, providing for the long-term development of this light oil resource base. Recently-completed wells at Waskahigan continue to meet performance expectations. After flow back clean-up, the final 24 hour flow test results from the four most recently-completed wells (4.0 net), located in township 63, range 23 west of the fifth meridian (5-27, 1-26, 12-33 and 1-35), resulted in an average rate of 1,087 bbls/d of light oil, with an average gas-to-oil ratio of 978 standard cubic feet per bbl, for an oil equivalent average rate of 1,264 boe/d. Two of these wells are expected to be pipeline connected into RMP's oil battery shortly with the other two wells scheduled to be tied-in by year-end. Ante Creek Drilling Update At Ante Creek in West Central Alberta, located to the north of RMP's Waskahigan asset base, the Company has commenced initial exploration drilling targeting the Montney formation (4-35-66-24W5). The Triassic-age Montney formation, which trends north-westerly through north-western Alberta, has been the focus regionally by numerous industry participants. RMP holds five sections (5.0 net) of land at Ante Creek. Crude Oil Hedging As a means of managing the downside risk of crude oil market price volatility, to ensure that the Company's cash flow is sufficient to fund the continued development of its light oil assets in 2012, RMP took advantage of the recent strength in oil prices and entered into Canadian-dollar denominated fixed price oil swaps for calendar 2012. For next year, a total of 700 barrels per day of crude oil has been hedged with a fixed weighted average price of $99.19 Canadian per barrel. Abbreviations Crude 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 MMcf/dmillion cubic feet per dayboe 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 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. 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 new release contains forward looking information relating to: average flow test production rates for Waskahigan wells and expected well tie-in timing. 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 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.As an indicator of the Company's performance, the term cash flow from operations or operating cash flow contained within this news release should not be considered as an alternative to, or more meaningful than, cash flow from operating, financing or investing activities, as determined in accordance with International Financial Reporting Standards ("IFRS"). This term does not have a standardized meaning, nor is it a financial measure, under IFRS. Cash flow from operations is widely accepted as a financial indicator of an exploration and production company's ability to generate cash which is used to internally fund exploration and development activities and to service debt. This measure is widely used by shareholders and investors in the valuation, comparison and investment recommendations of companies within the natural gas and crude oil exploration and production industry. Cash flow from operations, as disclosed within this news release, represents cash flow from operating activities before: expensed corporate acquisition-related costs, decommissioning obligation cash expenditures and changes in non-cash working capital from operating activities. The Company presents cash flow from operations per share whereby per share amounts are calculated consistent with the calculation of earnings per share. Net debt refers to outstanding bank debt plus working capital deficit (excludes current unrealized amounts pertaining to risk management commodity contracts). Net debt is not a recognized measure under IFRS.Operating netbacks refers to realized wellhead revenue less royalties, operating expenses and transportation costs per barrel of oil equivalent ("boe"). 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