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Press release from Marketwire

RMP Energy Provides Operations Update

Tuesday, October 02, 2012

RMP Energy Provides Operations Update16:14 EDT Tuesday, October 02, 2012CALGARY, ALBERTA--(Marketwire - Oct. 2, 2012) - RMP Energy Inc. ("RMP" or the "Company") (TSX:RMP) today provided the following updates: Production Update Third quarter 2012 corporate production is estimated to average approximately 4,960 boe/d. Light oil and NGLs comprised approximately 40% of the total production. This represents a 46% increase over last year's third quarter production of 3,400 boe/d with a 25% liquids weighting. New well tie-in activities and down-hole pump workovers were hampered in the third quarter of this year due to unseasonably prolonged wet surface lease conditions at Waskahigan. At Waskahigan, production is presently off-line due to pipeline installation activity on the natural gas main line downstream of RMP's oil battery. This downtime commenced October 1, 2012 and is anticipated to last approximately five days. Prior to the Waskahigan field outage, the Company's production exceeded its year-end exit target rate of 5,000 boe/d, with a light oil and NGLs weighting of approximately 50%. Waskahigan Operations In the third quarter of this year, RMP drilled three 100% working interest horizontal oil wells and successfully completed these wells in addition to a second-quarter drilled horizontal well (1.0 net). During the nine months ended September 30, 2012, the Company drilled a total of nine (9.0 net) horizontal wells at Waskahigan and is currently drilling its tenth well of the year. Since the corporate re-structuring in May 2011, RMP has executed a very successful Montney oil drilling program, with a total of nineteen (19.0 net) horizontal wells drilled since then with 100% success. In total, the Company has twenty-five (25.0 net) horizontal oil wells drilled into the Montney light oil pool at Waskahigan.During the third quarter, the Company continued with the expansion of its Waskahigan oil battery to approximately 6,000 bbls/d from the current capacity of 2,500 bbls/d. The expanded oil battery will provide for: i) future handling of the Company's expanded production base, ii) processing of RMP's trucked-in Ante Creek oil production, and iii) the accommodation of third-party volumes from area operators. Full battery expansion is anticipated to be completed in early 2013. The estimated cost to more than double the battery oil capacity is approximately $4 million, as compared to the original $18.5 million cost to construct the oil battery and install associated gathering lines last year. At Waskahigan, RMP continues to establish and build a core Montney light oil resource project, with the requisite size and scale to drive significant future production and cash flow growth. In this area, the Company has accumulated a light oil drilling inventory of approximately 175 locations, with an average working interest of 93%. Ante Creek Operations During the third quarter, the Company brought on-stream its wholly-owned 4-35-66-24W5 Montney oil well at Ante Creek. Through to September 30, 2012, the well has produced an estimated 49,600 bbls of light oil and approximately 26 mmcf of associated solution gas. The produced oil is presently being trucked into the Company's Waskahigan oil battery with the associated solution gas conserved and processed at an area operator's gas plant. As a result of the exceptional economics, the Company has decided to follow-up the 4-35 well with an additional two 100% working interest wells at Ante Creek. The first location (13-26-66-24W5) is presently being drilled and the second location (1-36-66-24W5), which is expected to delineate lands to the east, is anticipated to be drilled prior to year-end. In light of the strong, initial production performance of the Company's 4-35 well, complemented with proximal drilling success in the Montney formation by other area operators, RMP is excited with the resource potential of its six section land block at Ante Creek and its five sections in South Ante Creek. The Company plans to drill an exploration well (1.0 net) on its South Ante Creek acreage in the fourth quarter of this year (4-14-65-23W5).At Ante Creek, the Company has identified an additional 22 drilling locations at 100% working interest, and conditional upon success with its South Ante Creek exploration location, RMP's drilling inventory in the area could potentially double in size. Crude Oil Hedging Update In order to ensure the Company's cash flow is protected from precipitous crude oil price decreases, RMP recently layered in additional Canadian-dollar denominated fixed price oil swaps for calendar 2013. An additional 500 bbls/d of crude oil has been hedged with a fixed price of $96.74 Canadian per bbl. In aggregate, for calendar 2013, the Company has now hedged 1,000 bbls/d of crude oil with a fixed weighted average price of $100.17 Canadian per bbl. Third Quarter 2012 Financial Results Release RMP is scheduled to release its third quarter 2012 financial results on November 12, 2012, subsequent to TSX market close. Abbreviations bblbarrelMcf/dthousand cubic feet per dayMbblthousand barrelsmmcf/dmillion cubic feet per daybbls/dbarrels per daymmcfmillion cubic feetboebarrels of oil equivalentpsipounds per square inchMboethousand barrels of oil equivalentkPakilopascalsboe/dbarrels of oil equivalent per dayWTIWest Texas IntermediateNGLsnatural gas liquidsC$Canadian dollars 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. 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: third quarter 2012 production and light oil and NGLs commodity weighting, year-end exit production, the timing for the completion of pipeline installation activity on the natural gas mainline downstream of RMP's oil battery at Waskahigan, Waskahigan and Ante Creek area drilling inventory, Ante Creek well project economics and cumulative production to-date of the Ante Creek 4-35-66-24W5 well, the timing and estimated cost of the Company's Waskahigan oil battery expansion, future drilling plans for the Company's Ante Creek area, and the timing for the release of the Company's third quarter 2012 financial results. 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.FOR FURTHER INFORMATION PLEASE CONTACT: John 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