|By Marketwired .||
|January 15, 2013 08:00 AM EST||
CALGARY, ALBERTA -- (Marketwire) -- 01/15/13 -- RMP Energy Inc. ("RMP" or the "Company") (TSX:RMP) is pleased to announce record fourth quarter production and provide an operations update on Ante Creek, Waskahigan, Grizzly and South Ante Creek.
Operations Update: Corporate Production
As a result of RMP's successful exploration and development drilling program, the Company delivered record quarterly production for the fourth quarter 2012 of approximately 6,500 boe/d, weighted 47% light oil and 3% NGLs. RMP's annual average daily production for fiscal 2012 is estimated at approximately 5,300 boe/d, achieving its originally-guided 2012 production target of 5,000 to 5,500 boe/d and representing a 53% increase over fiscal 2011 average daily production of 3,472 boe/d (weighted 17% light oil and 8% NGLs).
Operations Update: Ante Creek, West Central Alberta
Ante Creek Montney Light Oil Production
To-date, RMP has three, 100% working interest light oil wells drilled at Ante Creek. Production in the area has been restricted to one well as a result of current battery capacity and natural gas processing constraints. The initial production performance from RMP's first two Montney horizontal oil wells (4-35-66-24W5 and 13-26-66-24W5) has been very significant. On November 14, 2012, the 4-35 well was deliberately shut-in to accommodate the 13-26 well start-up. At that time, the well was producing, without artificial lift, approximately 1,200 bbls/d of light gravity crude oil (37 degree API) and 0.9 MMcf/d of associated natural gas, for an oil equivalent rate of approximately 1,350 boe/d. After 87 producing days, the 4-35 well produced 90,000 bbls of light oil and approximately 66 MMcf of associated solution gas, for a combined cumulative production of 101,000 boe (90% light oil).
Production thus far from RMP's Ante Creek 13-26 well has demonstrated a very strong production profile. The 13-26 well was brought on-stream on November 14, 2012 and is presently flowing, without artificial lift, approximately 1,300 bbls/d of light oil (37 degree API) and 1.1 MMcf/d of associated natural gas, for an oil equivalent rate of 1,480 boe/d. After 55 producing days, the 13-26 well has produced an estimated 90,000 bbls of oil and approximately 60 MMcf of natural gas, for a combined cumulative production of approximately 100,000 boe (90% light oil).
Both of these wells have not demonstrated any material production decline since being on-stream and the Company has already recovered its drilling and completion capital investment through significant field cash flow generation from each of these wells.
RMP's third Ante Creek well (1-36-66-24W5) is presently shut-in, awaiting the Ante Creek oil battery expansion. The 1-36 well was flow-tested in November 2012 and over the first 40 hour flow back, the well recovered all of the fluid used to fracture the well. During the final 24 hours of a 69 hour new oil production test, it produced approximately 2,421 bbls/d of 37 degree API crude oil and 3.16 MMcf/d of associated solution gas for a total of approximately 2,950 boe/d at an average flowing tubing wellhead pressure of 584 psi. Please refer to important Reader Advisories at the end of this news release.
At Ante Creek, the Company holds a 100% working interest in a six section, contiguous acreage block, on which RMP has identified an additional twenty-one, high impact, light oil horizontal drilling locations. The Company is scheduled to commence drilling its fourth Ante Creek horizontal well (13-27-66-24W5) the week of January 21, 2013 and expects to drill its fifth well by March 31, 2013.
Firm Service Processing Arrangement
In order to alleviate the gas processing constraints at Ante Creek, RMP successfully arranged firm service capacity at an area operator's gas plant, providing for the processing of solution gas associated with its Montney oil production. Firm service of 3.5 MMcf/d has been negotiated for calendar 2013, with 2.0 MMcf/d locked-in for both calendar 2014 and 2015. The Company is expanding its Ante Creek oil battery in order to increase processing capacity of its crude oil and associated solution gas. This expansion includes additional tank storage, multiple truck-loading stations and additional compression. The expansion is expected to be operational by mid-February 2013, enabling RMP to produce multiple wells.
Operations Update: Waskahigan, West Central Alberta
At Waskahigan during 2012, RMP successfully drilled and completed eleven, 100% working interest horizontal Montney oil wells. Initial production of these wells, on average, is tracking the Company's internal expectations, with an estimated ultimate recovery for each well of 160,000 bbls of oil (220,000 boe including associated solution gas). The thirty-day (producing) initial production (IP) average for nine of the wells drilled in 2012 is approximately 450 bbls/d of light oil (600 boe/d including 25% associated solution gas). The last two Waskahigan wells drilled in 2012 were recently tied-in and brought on-stream and have not yet achieved thirty days of production history.
RMP is currently drilling its twenty-seventh (27.0 net) Montney horizontal oil well (3-11-64-23W5) at Waskahigan, which is programmed to be the Company's longest horizontal well to-date, with a total measured depth of approximately 4,300 metres and a 1,900 metre horizontal section. A total of twenty (20.0 net) horizontal oil wells have been drilled by RMP with 100% success since the corporate re-structuring of Orleans Energy in May 2011.
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. The Company has accumulated an acreage position at Waskahigan encompassing 37 sections at 100% working interest providing for a future light oil drilling inventory of approximately 120 locations.
Exploration Drilling: Grizzly, West Central Alberta
At Grizzly, to the southeast of Waskahigan, RMP successfully drilled and completed an exploration well located at 12-26-62-23W5 (100% working interest), with test results confirming the existence of a Montney oil pool. The 12-26 exploration well was drilled to a total measured depth of 3,750 metres, with 1,438 metres of horizontal section. Completion operations encompassed an 18 stage, 270 tonne fracture stimulation (average 15 tonnes per stage). Flow-back results have demonstrated the Montney reservoir to be oil bearing and gas charged. The well is currently undergoing a new oil production test subsequent to an 84 hour clean-up and full recovery of the fluid used to fracture the well. During the first twenty-four hours of the current production test, it flowed approximately 700 bbls/d of 40 degree API crude oil (25% water cut) and 1.6 MMcf/d of associated solution gas for a total of approximately 1,000 boe/d at a flowing tubing wellhead pressure of approximately 300 psi. Please refer to important Reader Advisories at the end of this news release.
The Company is currently drilling a second, 100% working interest Montney horizontal delineation well at Grizzly (4-5-63-22W5). The 4-5 well is expected to undergo fracture stimulation and production testing by the end of January 2013.
At Grizzly, the Company is encouraged by its initial exploration drilling results and recently increased its working interest position to 100% on its 12.25 sections (7,840 acres) of land, with the acquisition of a partners' 30% working interest. The mineral rights include the Montney formation, however, they exclude the deep rights. The purchase consideration was budgeted within RMP's previously-disclosed 2013 Capital Budget.
Exploration Drilling: South Ante Creek, West Central Alberta
At South Ante Creek, RMP drilled, completed and tested the Montney formation at 4-14-65-23W5M. The 4-14 exploration well was drilled to a total measured depth of 3,681 metres, with 1,624 metres of horizontal section. Completion operations encompassed an 18 stage, 270 tonne fracture stimulation (average 15 tonnes per stage). During a 60 hour clean-up and test, the 4-14 well recovered 79% of its frac load fluid before being shut-in for pressure build-up. Geologically, the 4-14 well is believed to have encountered reservoir quality sand within the Montney oil window, however, rock permeability appears to be low at this location which is prohibiting flow of commercial quantities of hydrocarbons. The Company plans to undertake remedial operations on this well in order to assess the wellbore's productive potential, as well as evaluate the geological potential for further drilling on the Company's five section acreage position.
RMP has an updated corporate presentation available on its website at www.rmpenergyinc.com.
---------------------------------------------------------------------------- bbl or bbls barrel or barrels Mcf/d thousand cubic feet per day ---------------------------------------------------------------------------- Mbbl thousand barrels MMcf/d million cubic feet per day ---------------------------------------------------------------------------- bbls/d barrels per day MMcf Million cubic feet ---------------------------------------------------------------------------- boe barrels of oil Bcf billion cubic feet equivalent ---------------------------------------------------------------------------- Mboe thousand barrels of oil psi pounds per square inch equivalent ---------------------------------------------------------------------------- boe/d barrels of oil kPa kilopascals equivalent per day ---------------------------------------------------------------------------- NGLs natural gas liquids WTI West Texas Intermediate ----------------------------------------------------------------------------
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: fourth quarter 2012 and fiscal 2012 average daily production levels and light oil and NGLs weighting, estimated cumulative production for the Ante Creek 4-35 and 13-26 wells, the anticipated on-stream date for the Ante Creek 1-36 well, timing of an Ante Creek well at 13-27 and the timing of RMP's fifth well at Ante Creek, firm service arrangement details at Ante Creek and associated volumes, timing of Ante Creek battery expansion, estimated ultimate recovery data of Waskahigan wells, thirty-day producing initial production averages of Waskahigan wells drilled in 2012, RMP's plan at Waskahigan 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, drilling inventories at Waskahiagn and Ante Creek, the timing of completion operations on the Company's Grizzly 4-5 well, and RMP's plans in respect of its 4-14 well at South 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.
Field operating income or field cash flow refers to realized wellhead revenue less royalties, operating expenses and transportation costs. Field netback is field operating income per barrel of oil equivalent. Field operating income and netback are not recognized measures under IFRS and does not have a standardized meaning.
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Sep. 29, 2016 09:00 AM EDT Reads: 4,161
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, will discuss recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model f...
Sep. 29, 2016 08:00 AM EDT Reads: 2,089
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2016 Silicon Valley. The 6thInternet of @ThingsExpo will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Sep. 29, 2016 08:00 AM EDT Reads: 2,686
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
Sep. 29, 2016 08:00 AM EDT Reads: 2,710
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Sep. 29, 2016 07:00 AM EDT Reads: 3,489
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
Sep. 29, 2016 07:00 AM EDT Reads: 3,414
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Sep. 29, 2016 06:45 AM EDT Reads: 1,675
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Sep. 29, 2016 06:45 AM EDT Reads: 3,209
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Sep. 29, 2016 05:45 AM EDT Reads: 1,504
Digital transformation is too big and important for our future success to not understand the rules that apply to it. The first three rules for winning in this age of hyper-digital transformation are: Advantages in speed, analytics and operational tempos must be captured by implementing an optimized information logistics system (OILS) Real-time operational tempos (IT, people and business processes) must be achieved Businesses that can "analyze data and act and with speed" will dominate those t...
Sep. 29, 2016 05:15 AM EDT Reads: 1,246
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
Sep. 29, 2016 05:00 AM EDT Reads: 1,643
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Sep. 29, 2016 04:30 AM EDT Reads: 4,691
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Sep. 29, 2016 04:00 AM EDT Reads: 1,218
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Sep. 29, 2016 04:00 AM EDT Reads: 1,822
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Sep. 29, 2016 03:30 AM EDT Reads: 3,042
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
Sep. 29, 2016 03:30 AM EDT Reads: 1,380
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Sep. 29, 2016 03:15 AM EDT Reads: 1,910
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
Sep. 29, 2016 03:15 AM EDT Reads: 3,588
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Sep. 29, 2016 03:00 AM EDT Reads: 1,895
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Sep. 29, 2016 02:45 AM EDT Reads: 1,721