Year-End Reserves Information
RMP is pleased to provide information on its crude oil and natural gas reserves as of December 31, 2012, as evaluated by the Company's independent qualified reserves evaluators, InSite Petroleum Consultants Ltd. ("InSite"). The evaluation of RMP's reserves was prepared in accordance with the definitions, standards and procedures prescribed in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook. Unless stated otherwise, all reserves referred to in this news release are stated on a company gross basis (working interest before deduction of royalties and without including any royalty interests). More detailed information in respect of the Company's reserves will be included in RMP's Annual Information Form for the year ended December 31, 2012, which will be filed on the Company's SEDAR profile before March 31, 2013. Highlights of RMP's reserves include the following:
-- Added 4.37 million boe of proved plus probable reserves (2.42 million boe proved) in 2012, before production, for a reserve replacement ratio of 223% (123% proved).-- Total proved plus probable oil and gas reserves increased to 25.09 million boe (14.86 million boe total proved), as compared to the 22.68 million boe (14.39 million boe total proved) at December 31, 2011. Proved developed producing reserves increased to 8.23 million boe, as compared to 7.01 million boe at December 31, 2011.-- Increased the Ante Creek area Montney reserves to 4.46 million boe (88% light oil weighted), as compared to 844 thousand boe at December 31, 2011 (proved plus probable). Ante Creek finding and development costs in 2012 were $10.20 per proved plus probable boe ($14.49 per proved), resulting in a recycle ratio of 5.7 times proved plus probable (4.0 times proved) based on the realized Ante Creek field operating netback of $58.10 per boe in 2012.-- As a result of a very successful light oil drilling program in 2012, achieved all-in finding, and development ("F&D") costs of $13.76 per proved plus probable boe ($22.93 per proved boe), including changes in future development costs ("FDC"), resulting in a recycle ratio of 2.2 times proved plus probable boe (1.3 times proved boe). Using the fourth quarter 2012 field operating netback of $36.64 per boe, which is more representative of the Company's current oil and gas production composition, the recycle ratio increases to 2.7 times proved plus probable boe (1.6 times proved boe). Future development costs decreased by 14% to $205.1 million, as compared to December 31, 2011 FDC of $239.9 million (proved plus probable). The Company continues to direct capital towards light oil drilling at Waskahigan and Ante Creek, which provide for project recycle economics of greater than two times and five times, respectively, and accelerated capital payouts.-- Despite a year-over-year decrease in the forward price deck utilized by InSite for both light oil (approximately 6% lower) and natural gas (approximately 17% lower), RMP's year-end 2012 net asset value increased to $4.09 per share (discounted 8%) and $3.68 per share (discounted 10%) (fully-diluted), as compared to $3.93 per share and $3.47 per share, respectively, at the prior year-end of 2011 (please refer to Net Asset Value table disclosure hereafter for calculation details).