RMP Energy Reports Year-End Reserves and Announces Record Annual Production
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 03/03/16 -- RMP Energy Inc. ("RMP" or the "Company") (TSX: RMP) is pleased to provide information on its crude oil, natural gas and NGLs reserves as of December 31, 2015, as evaluated by the Company''s independent qualified reserves evaluators, InSite Petroleum Consultants Ltd. ("InSite"). The evaluation of RMP''s reserves was prepared in accordance with the definitions, standards and procedures prescribed in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook. Unless stated otherwise, all reserves referred to in this news release are stated on a company gross basis (working interest before deduction of royalties and without including any royalty interests). Reserves and operational highlights include the following:
Corporate Reserves Information
A summary of InSite''s escalated price forecast assumptions as of December 31, 2015 are as follows:
Net Asset Value
The Company''s net asset value details, as of December 31, 2015, are as follows:
Capital Expenditures Efficiency and Future Development Costs ("FDC")
The following outlines finding, development and acquisition ("FD&A") costs for the prior year of 2014, in addition to the average over the three-year period of 2013 to 2015, inclusive.
The following table outlines the future development costs ("FDC") required to bring proved and probable undeveloped reserves on-production. The FDC has been deducted in the estimation of future net revenue attributable to total proved reserves and total proved plus probable reserves (using forecast prices and costs).
The Company expects to fund its future development cost requirements from internally-generated cash flow from operations and, as appropriate, from its existing committed bank credit facility, equity or debt financing. It is anticipated that the costs of funding the future development costs will not impact development of RMP''s properties or the Company''s reserves or future net revenue.
Abbreviations
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 news release contains forward looking information relating to: forecasted commodity prices; foreign exchange rates and inflation rates; future development capital costs and RMP''s expectations regarding the funding of such future development capital costs and the impact of funding such costs on the development of RMP''s properties; RMP''s reserves and future net revenue; the Company''s field estimated drilling and completions costs for its Waskahigan, Ante Creek and Gold Creek first quarter 2016-drilled wells; and the timing of its waterflood injector pilot start date. 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.
This press release contains metrics commonly used in the oil and natural gas industry, such as "operating netback recycle ratio", "finding and development costs", "finding, development and acquisition costs", "operating netbacks", and "reserve life index". These terms do not have a standardized meaning and may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons.
Both F&D and FD&A costs take into account reserves revisions during the year on a per boe basis. The aggregate of the costs incurred in the financial year and changes during that year in estimated FDC may not reflect total finding and development costs related to reserves additions for that year. F&D costs both including and excluding acquisitions and dispositions have been presented in this news release because acquisitions and dispositions can have a significant impact on our ongoing reserves replacement costs and excluding these amounts could result in an inaccurate portrayal of our cost structure. Recycle ratio is measured by dividing the operating netback by appropriate F&D or FD&A cost per boe for the year. As described below, field operating netback or operating netback is calculated using realized wellhead revenues less royalties, operating expenses and transportation costs calculated on a per boe equivalent basis. Management uses these oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare RMP''s performance over time.
Statements relating to "reserves" are forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitably produced in the future.
This news release may disclose drilling locations in four categories: (i) proved undeveloped locations; (ii) probable undeveloped locations; iii) unbooked locations; and, iv) an aggregate total of (i), (ii) and (iii). Proved undeveloped locations and probable undeveloped locations are booked and derived from the Company''s most recent independent reserves evaluation as prepared by InSite as of December 31, 2015 and account for drilling locations that have associated proved and/or probable reserves, as applicable. Unbooked locations are internal estimates based on the Company''s prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do not have attributed reserves or resources. Unbooked locations have been identified by management as an estimation of the Company''s multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that the Company will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on which the Company will actually drill wells is ultimately dependent upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been derisked by drilling existing wells in relative close proximity to such unbooked drilling locations, the majority of other unbooked drilling locations are farther away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves, resources or production.
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.
In this news release, the estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and net revenue for all properties due to the effects of aggregation. Estimates of reserves have been made assuming that development of each property, in respect of which estimates have been made, will occur without regard to the availability of funding required for that development.
The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserves additions for that year.
Net debt refers to outstanding bank debt less deferred charge plus working capital deficiency (or minus working capital surplus), excluding unrealized amounts pertaining to risk management contracts. Net debt is not a recognized measure under IFRS and does not have a standardized meaning.
Field operating netback or operating netback refers to realized wellhead revenue less royalties, operating expenses and transportation costs per barrel of oil equivalent. Field operating netback or operating netback is not a recognized measure under IFRS and does not have a standardized meaning.
As of the date of this news release, the preparation and audit of the Company''s annual 2015 financial statements is not yet complete, and accordingly all financial amounts referred to in this news release are unaudited and represent RMP Management''s estimates. Readers are advised that these financial estimates may be subject to change.
Contacts:
RMP Energy Inc.
John Ferguson
President and Chief Executive Officer
(403) 930-6303
RMP Energy Inc.
Dean Bernhard
Vice President, Finance and Chief Financial Officer
(403) 930-6304
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Datum: 03.03.2016 - 18:21 Uhr
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News-ID 1419528
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