NOVEMBER 15 & 16, 2011. FirstEnergy Capital Corp. 2011 FirstEnergy Conference. Corporate Presentation. dISCLAIMER.
NOVEMBER 15 & 16, 2011
FirstEnergy Capital Corp.
2011 FirstEnergy Conference
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.
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 51-101. 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.
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
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
Waskahigan resource potential: OOIP: 264 Mstb
OGIP: 194 BCF
Total: 296 Mboe
Nine months ended September 30,
(thousands except share data) 2011 2010 % Change
Cash flow from operations $ 12,848 $ 19,784 (35)
Per share – basic and diluted $ 0.17 $ 0.30 (43)
Net Income (loss) $ (3,994) $ (152) -
Net debt – period end $ 37,822 $ 46,305 (18)
Nine months ended September 30,
(6:1 oil equivalent conversion) 2011 2010 % Change
E&D Capital Spending ($ thousands) $ 68,476 $ 41,420 65
Average Daily Production:
Crude Oil & NGLS(bbls/d) 668 621 8
Natural Gas (mcf/d) 14,297 19,347 (26)
Oil Equivalent (boe/d) 3,051 3,846 (21)