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Corporate Presentation

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Presentation on theme: "Corporate Presentation"— Presentation transcript:

1 Corporate Presentation
NOVEMBER 15 & 16, 2011 FirstEnergy Capital Corp. 2011 FirstEnergy Conference Corporate Presentation

2 dISCLAIMER Certain information regarding RMP Energy Inc. (“RMP”) (the “Company”) contained within this corporate presentation may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include internal estimates and forecasts and may also include estimates, plans, expectations, opinions, forecasts, projections, indications, targets, guidance or other similar statements that are not statements of fact. The forward-looking statements contained within this corporate presentation are based on Management’s assessments of future plans that involve geological, engineering, operational and financial estimates or expectations of future production, reserves, capital expenditures, well project economics, cash flow and earnings. Although the Company believes that such estimates or expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. A number of risks and uncertainties that may or may not be within the control of the Company may cause these results to vary materially from those predicted herein and the reader and/or viewer is therefore cautioned that such information is speculative in nature. Please refer to the Risk Factors outlined in RMP’s Annual Information Form for the year ended December 31, 2010, which is available on the System for Electronic Document Analysis and Retrieval (“SEDAR”). The disclosed and presented net present value of future net revenue or cash flows attributable to the Company’s reserves are stated without provision for interest costs and general and administrative costs, but after providing for estimated royalties, production/operating and transportation costs, future development costs, other income, and well abandonment costs. It should not be assumed that the undiscounted or discounted net present value of future net revenue or cash flows attributable to the Company’s reserves, as estimated or evaluated by the Company or their independent qualified reserves evaluators, represents the fair market value of those reserves. Actual reserves may be greater than or less than the estimates provided herein.

3 dISCLAIMER The well economics provided in this presentation are based on the average historical estimates of reserves for wells drilled in the respective areas in which RMP has an interest and there is no certainty that future wells will have similar economics. The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation. Finding and development costs have been prepared in accordance with National Instrument 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. The estimates of original oil in place ("OOIP") and original gas in place ("OGIP") with respect to the Montney Growth Fairway in this presentation are estimates prepared by the Alberta Energy Resources Conservation Board. Such estimates have been provided to highlight the resource potential in the Montney Growth Fairway in which RMP has an interest. RMP cannot confirm whether such estimates have been prepared by a qualified reserves evaluator or whether such estimates have been prepared in accordance with the Canadian Oil and Gas Evaluation Handbook. 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.

4 Formation of company Formed May 11, 2011 with the combination of Orleans Energy Ltd. and RMP Energy Ltd. Trading Symbol RMP.TO Shares Outstanding million Options million Warrants million Directors’ & Officers’ ownership (fully diluted) 12%

5 COMPANY Created a very focused, well-managed and high quality junior producer Significant Waskahigan light oil development opportunity Near-term focus Excellent natural gas resource potential Strong balance sheet Large tax pool balance

6 DIRECTORS Craig Stewart Executive Chairman of RMP Energy Inc.
Doug Baker Independent Businessman John Brussa Partner, Burnet Duckworth & Palmer LLP John Ferguson President and CEO of RMP Energy Inc. Andrew Hogg President and CEO of Coda Petroleum Inc. Jim Saunders President and CEO of Twin Butte Energy Ltd. Lloyd Swift Independent Businessman

7 Management Team Craig Stewart – Executive Chairman John Ferguson – President and CEO Dean Bernhard – Vice President, Finance and CFO Brent DesBrisay – Vice President, Geosciences Jon Grimwood – Vice President, Exploration Ross MacDonald – Vice President, Engineering Bruce McFarlane – Vice President, Business Development

8 MANAGEMENT TRACK RECORD
Senior management team has worked together for over 20 years Successfully grown and managed companies from 1,000 boe/d to 120,000 boe/d Team has invested over $5.0 billion in WCSB since 1992 Team is a proven value creator throughout commodity price cycles

9 2011 forecast Capital Spending $ 100 million Production
Annual Avg. 3,300 boe/d December ,000 boe/d (40% Oil and NGLs) Cash Flow $ 22 million

10 Core areas Oil exploration and development Waskahigan Ante Creek
Big Muddy Natural Gas potential Kaybob Pine Creek Resthaven/Bilbo Ricinus

11 MONTNEY Oil FAIRWAY Significant land position in the Montney oil fairway Large Montney oil accumulations in this region Active area for: Montney Nordegg Duvernay Waskahigan resource potential: OOIP: 264 Mstb OGIP: 194 BCF Total: 296 Mboe

12 Waskahigan Montney Oil
Top tier light oil play in WCSB Large accumulation: resource study estimate 264 Mstb OOIP Three years of low risk infill drilling inventory (33 locations) Up to 100 additional locations with step out drilling 100% owned and operated facility, commissioned and on-stream end of October 2011 Capacity: 2500 bbl/d oil & 10 mmcf/d gas Readily expandable to double capacity High netbacks >$60/boe; low operating costs <$7/boe Large unbooked resource Exceptional economics

13 Waskahigan Montney Oil
39 net sections 100% W.I. Drilled wells: 15 2 more wells drilled in 2011 Completions will commence in new year HTE and ASOC locations have the potential to significantly de-risk the northern part of property and increase development program. Potential for up to 100 additional locations. Pool details Avg. OOIP/Section: 8,000 MBOE 40o API Light Oil GOR: 2,500 scf/bbl

14 Waskahigan Montney Oil
Development 32 locations in licensing process 100+ incremental locations in full development scenario Pad drilling configuration will significantly reduce surface access and tie-in costs Infrastructure is in place for drilling program. 9 pads are built and pipelines are in the ground.

15 Waskahigan Montney Oil
Oil Battery Design capacity 2500 bbl/d oil 10 mmcf/d natural gas $16 million capital Will significantly reduce transportation and operating costs Expansion Battery has been designed to be expanded Capacity can be doubled

16 Waskahigan Montney Oil

17 ANTE CREEK Montney Oil 5 sections 100% W.I.
Extension of Ante Creek oil pool Significant activity in area with positive results by HTE, POU, CNQ, ARX Currently surveyed location with drilling to start this winter Success will result in multi-well program

18 Pine Creek Wilrich Natural Gas
6.25 net sections, 56% W.I. Wilrich HZ development 4 wells currently producing from Wilrich, 1 more well anticipated by year end (40% W.I.; Peyto operated) Currently producing ~ 750 boe/d

19 Resthaven/bilbo Liquid Rich Natural Gas
Large land base in multi- zoned, gas-charged area Montney gas exploration has driven recent activity Significant investment in HZ Montney drilling by competitors Results will dictate RMP’s pace of development Secondary targets include Nikanassin and Halfway

20 Kaybob Montney Natural Gas
28 sections 92% W.I. Significant low risk gas inventory 60 locations; 90 BCF Infrastructure is established; quick tie-in and onstream projects Industry is still very active in area; i.e TQN, TET, CLT Very attractive play when gas prices recover

21 conclusion Strong production growth through oil development at Waskahigan Exposure to oil exploration at Ante Creek and Big Muddy Tremendous natural gas potential at: Kaybob Pine Creek Ricinus Resthaven/Bilbo

22 APPENDIX

23 Ricinus Liquid Rich Natural Gas
52 sections, 64% W.I. “Deep Basin” stratigraphy provides a “resource style” area Reviewing 3-D seismic Potential zones Cardium Viking Glauconite Ellerslie Cadomin

24 Big muddy Bakken Oil Prospect

25 THIRD Quarter 2011 financial results
Nine months ended September 30, (thousands except share data) % Change Cash flow from operations $ 12,848 $ 19,784 (35) Per share – basic and diluted $ $ (43) Net Income (loss) $ (3,994) $ (152) - Net debt – period end $ 37,822 $ 46,305 (18)

26 THIRD Quarter 2011 operating results
Nine months ended September 30, (6:1 oil equivalent conversion) % Change E&D Capital Spending ($ thousands) $ 68,476 $ 41,420 65 Average Daily Production: Crude Oil & NGLS(bbls/d) Natural Gas (mcf/d) 14,297 19,347 (26) Oil Equivalent (boe/d) 3,051 3,846 (21)


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