- Published: 12 January 2012
- Written by Editor
RMP Energy Announces Light Oil Exploration Success at Ante Creek and Provides Operational Update
RMP Energy Inc. ("RMP" or the "Company") (TSX:RMP.TO - News) today provided the following updates:
Ante Creek Drilling
RMP is pleased to report that it has successfully drilled and completed its exploration Montney light oil well at Ante Creek in West Central Alberta. The 100% working interest well, located at 4-35-66-24W5, was drilled to a total measured depth of 3,629 metres with a horizontal leg of 1,555 metres. The well was completed with an 18 stage, gelled-hydrocarbon fracture stimulation. After recovering all of its load fluid, the 4-35 well flow-tested an average of 1,620 bbls/d of crude oil with a gas-oil-ratio of 1,030 standard cubic feet per bbl, for a total of 1,900 boe/d at a flowing wellhead tubing pressure of 5,779 kPa (838 psi). The gravity of the oil produced was 38 degree API.
With the successful acquisition of a contiguous section, RMP now holds six sections (6.0 net) of land at Ante Creek. Based on down-spacing to four wells per section, there are a potential 23 additional horizontal locations on the Company's lands. It is anticipated that production from Ante Creek could occur as early as the fourth quarter of 2012.
Waskahigan Operations
At Waskahigan, RMP continues to advance the delineation and development of its Montney light oil resource. A total of sixteen horizontal wells (16.0 net) have been drilled since pool discovery, with two additional wells (2.0 net) presently drilling (1-2-64-23W5 and 13-25-63-23W5). The Company has a drilling inventory in excess of 100 locations at Waskahigan, providing an extensive, multi-year inventory targeting light oil.
The Company recently completed and is presently testing the sixteenth Waskahigan horizontal well located at 12-3-64-23W5. Thus far, this well has recovered all of its load fluid over a 59 hour flow back clean-up period and is on its extended flow-test producing 1,640 bbls/d of 39 degree API crude oil with a gas-oil-ratio of 1,511 standard cubic feet per bbl, for a total of 2,050 boe/d at a flowing wellhead tubing pressure of approximately 7,000 kPa (1,015 psi). RMP anticipates this well to be tied-in and brought on-stream by the end of February, 2012.
Corporate Production
For the month of December, 2011, RMP achieved its previously-guided average daily production target of 5,000 boe/d, weighted approximately 40% towards light crude oil and NGLs.
Abbreviations
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Crude Oil and Natural Gas Liquids Natural Gas and Natural Gas Liquids
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bbl barrel Mcf/d thousand cubic feet per day
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Mbbl thousand barrels NGLs natural gas liquids
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bbls/d barrels per day MMcf/d million cubic feet per day
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boe barrels of oil equivalent Bcf billion cubic feet
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thousand barrels of oil
Mboe equivalent psi pounds per square inch
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barrels of oil equivalent per
boe/d day kPa kilopascals
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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 daily production rates for December 2011 (including crude oil and NGLs weighting), well completion flow test results, potential additional drilling locations and 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.
Contact:
Craig Stewart
RMP Energy Inc.
Executive Chairman
(403) 930-6302
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John Ferguson
RMP Energy Inc.
President and Chief Executive Officer
(403) 930-6303
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Dean Bernhard
RMP Energy Inc.
Vice President, Finance and Chief Financial Officer
(403) 930-6304
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