CALGARY, ALBERTA--(Marketwire - Nov. 7, 2012) - RMP Energy Inc. ("RMP" or the "Company") (TSX:RMP) is pleased to provide completion test results highlighting follow-up light oil Montney drilling success at Ante Creek in West Central Alberta.
At Ante Creek, RMP successfully drilled and completed its second Montney formation horizontal oil well located at 13-26-66-24W5 (100% working interest), which offset the Company's original oil discovery well (4-35-66-24W5). Over the first 59 hour flow back, the 13-26 well recovered all of its frac fluid. During the final 24 hours of a 96 hour new oil production flow test, it produced approximately 2,800 bbls of 36 degree API crude oil and 1.66 mmcf of associated solution gas for a total of approximately 3,090 boe at a flowing tubing wellhead pressure of 400 psi. Please refer to important Reader Advisories at the end of this news release.
RMP anticipates the 13-26 well to be tied-in and brought on-stream at a restricted rate by the end of November 2012. The Company is currently facility limited with associated solution gas processing. Oil production from RMP's Ante Creek area 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, which currently has allocated approximately 1.5 mmcf/d of capacity to RMP. The Company is presently evaluating numerous gas take-away alternatives in order to alleviate these capacity limitations for 2013.
In addition to the 13-26 well, RMP recently drilled its third Montney horizontal oil well located at 1-36-66-24W5 (100% working interest). The 1-36 well is expected to undergo fracture stimulation by the end of this week. The 1-36 well, pending completion success, may remain shut-in in the interim as a result of the aforementioned solution gas processing limitations.
The Company intends to provide a comprehensive operations update in its third quarter 2012 financial results news release scheduled for November 12, 2012.
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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 on-stream date for RMP's 13-26 well at Ante Creek, current associated solution gas processing limitations at Ante Creek, and the timing of completion operations on the Company's 1-36 well at Ante Creek. 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.