RMP Energy Announces Closing of Equity Financings

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CALGARY, ALBERTA--(Marketwire - Oct. 12, 2011) -


RMP Energy Inc. ("RMP" or the "Company") (TSX:RMP) is pleased to announce today that the Company closed its previously announced bought-deal equity financing led by GMP Securities L.P., and including FirstEnergy Capital Corp., National Bank Financial Inc., Peters & Co. Limited, AltaCorp Capital Inc., CIBC World Markets Inc., Cormark Securities Inc. and Scotia Capital Inc (the "Brokered Financing"). Pursuant to the terms of the Brokered Financing, RMP issued, on an underwritten basis, 9,303,000 common shares of the Company at a price of $2.15 per common share for total gross proceeds of approximately $20.0 million. 

Additionally, the Company has closed a non-brokered private placement of flow-through common shares for gross proceeds of $6.32 million, an increase of $1.32 million from the gross proceeds of $5.0 million previously announced. (collectively, with the Brokered Financing, the "Financings"). The Company issued 2,133,570 common shares on a flow-through basis with respect to Canadian development expenses at a price of $2.37 per share and 490,325 common shares on a flow-through basis with respect to Canadian exploration expenses at a price of $2.58 per share.

The proceeds of both Financings will be used to fund an expanded 2011 capital expenditure program, wherein the Company has increased its exploration and development budget to approximately $100.0 million from $75.0 million. Increased capital deployment will be primarily directed towards the continued delineation and development of RMP's Montney oil pool at Waskahigan in West Central Alberta, in addition to expanded non-operated drilling activities at Pine Creek in the Wilrich formation. 

As a result of the Financings, the Company has approximately 96.2 million common shares outstanding.

Reader Advisories

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. Specifically, this news release contains forward-looking information relating to the use of proceeds of the Financings. 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; 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. 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.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Craig Stewart
Executive Chairman
(403) 930-6302
John Ferguson
President and Chief Executive Officer
(403) 930-6303
Dean Bernhard
Vice President, Finance and Chief Financial Officer
(403) 930-6304