RMP Energy Provides Waskahigan Operational Update

CALGARY, ALBERTA--(Marketwire - Sept. 12, 2011) - RMP Energy Inc. ("RMP" or the "Company") (TSX:RMP) today provided an operational update highlighting test results from a recently-completed Waskahigan Montney oil well in addition to release of a Waskahigan hydrocarbons resource study.

Waskahigan Operations

RMP continues to expand and advance its Montney oil resource base at Waskahigan with its internally-generated drilling and completion activities. Six (6.0 net) horizontal wells have been successfully drilled to-date in 2011, of which five wells have been completed and fully-tested, bringing the Company's total wells drilled in Waskahigan area to ten (10.0 net). An additional two (2.0 net) wells are presently being drilled with another horizontal well currently undergoing clean-up and test following a recent fracture stimulation.

In the latter part of August, RMP successfully completed the horizontal oil well located at 16-26-63-23W5. The 16-26 well was drilled to a total measured depth of 3,669 metres, with 1,327 metres of horizontal section. Completion operations encompassed a 16 stage, 320 tonne fracture stimulation (average 20 tonnes per stage). During a total 92.5 hour clean-up and test, the 16-26 well after recovering all of its load fluid, flow tested at a final rate of approximately 1,060 barrels per day ("bbls/d") of light gravity sweet crude oil and 2.1 million cubic feet per day of associated natural gas for an overall test rate of approximately 1,400 barrels of oil equivalent per day ("boe/d"). RMP anticipates this well to be brought on-stream upon commissioning and start-up of its Company-owned infrastructure.

In the month of August 2011, based on field estimates, the Waskahigan field produced approximately 850 boe/d (including 575 bbls/d of light crude oil), an increase of 56% from the level produced in the second quarter of 2011. Field takeaway capacity is limited due to pipeline and field compression limitations for associated solution gas in a third-party-operated gathering system. RMP will eliminate the field production constraints through the construction of its own infrastructure, which will encompass an oil battery, compressor facility and gathering system with initially-designed oil processing capacity of 2,500 bbls/d (4,200 boe/d including associated solution gas). It is anticipated that this facility will start-up by mid-fourth quarter of this year. As a result, the Company's oil-weighting and cash flow generating capability is expected to increase significantly thereafter.

Waskahigan Resource Study

In order to assist with the development drilling plan for Waskahigan and to quantify the future reserve potential on RMP's extensive Waskahigan land base, the Company recently commissioned an independent qualified reserves evaluator, InSite Petroleum Consultants Ltd. ("InSite"), to assess the discovered petroleum initially in-place ("Discovered PIIP") and contingent resources within the Montney formation. As a result, a Petroleum Initially In-Place and Resource Study was prepared by InSite ("Resource Study"), effective August 31, 2011, in accordance with resource definitions, standards and procedures contained within the Canadian Oil and Gas Evaluation Handbook and the National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). InSite evaluated and analyzed available geological and engineering data and production information from both vertical and horizontal wells, which penetrated the Montney formation on and adjacent to the Company's lands. Additionally, InSite prepared best estimate net pay maps of the Montney formation, used in the calculation of the total, estimated original hydrocarbons in-place volume.

As outlined in the Resource Study, the estimated Discovered PIIP (1) assigned on 37.0 net sections of RMP's lands is 296.3 million barrels of oil equivalent, comprised of 264 million barrels of estimated oil-in-place and 194 billion cubic feet of associated solution gas in-place. Estimated recoverable, contingent resource hydrocarbon volumes on RMP's Waskahigan lands are summarized hereafter, utilizing a range of recovery factors to capture the range of uncertainty for the low, best and high estimates of recoverable volumes. Crude oil recovery factors were assigned using a range of 7.5% to 12.5%, a range deemed appropriate for this solution gas drive Montney reservoir. The associated solution gas was assigned a recovery factor range of 40% to 60%, with surface loss shrinkage of 10% utilized for sales gas determination. The following table summarizes the estimated contingent resources results of the Resource Study. There is no certainty that it will be commercially viable to produce any of these resources.

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(August 31, 2011)             Estimated Contingent Resources (2)            
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                                                             Oil Equivalent 
                     Crude Oil (Mbbls)  Natural Gas (Bcf)        (Mboe)(6:1)
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Low Estimate (3)               19,800             69.854             31,442 
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Best Estimate (4)              26,400             87.317             40,953 
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High Estimate (5)              33,000            104.781             50,463 
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Notes:

1.  Discovered Petroleum Initially In-Place is defined as the quantity of
    petroleum that is estimated, as of a given date, to be contained in
    known accumulations prior to production. The recoverable portion of
    discovered petroleum initially in-place includes production, reserves,
    and contingent resources; the remainder is unrecoverable. 
2.  Contingent Resources are those quantities of petroleum estimated, as of
    a given date, to be potentially recoverable from known accumulations
    using established technology or technology under development, but which
    are not currently considered to be commercially recoverable due to one
    or more contingencies. Contingencies may include factors such as
    economic, legal, environmental, political, and regulatory matters, or a
    lack of markets. It is also appropriate to classify as contingent
    resources the estimated discovered recoverable quantities associated
    with a project in the early evaluation stage. The most significant
    positive or negative factors with respect to estimates of contingent
    resources are related to the fact that the Waskahigan field is currently
    at an evaluation/delineation stage. The Montney formation is regionally
    extensive; however, area well control is limited. 
3.  Low Estimate is considered to be a conservative estimate of the quantity
    that will actually be recovered. It is likely that the actual remaining
    quantities recovered will exceed the low estimate. If probabilistic
    methods are used, there should be at least a 90% probability that the
    quantities actually recovered will equal or exceed the low estimate.  
4.  Best Estimate is considered to be the best estimate of the quantity that
    will actually be recovered. It is equally likely that the actual
    remaining quantities recovered will be greater or less than the best
    estimate. If probabilistic methods are used, there should be at least a
    50% probability that the quantities actually recovered will equal or
    exceed the best estimate. 
5.  High Estimate is considered to be an optimistic estimate of the quantity
    that will actually be recovered. It is unlikely that the actual
    remaining quantities recovered will exceed the high estimate. If
    probabilistic methods are used, there should be at least a 10%
    probability that the quantities actually recovered will equal or exceed
    the high estimate. 

The aforementioned discussion and disclosure is subject to a number of cautionary statements, assumptions and risks. See "Notes" to the above table and "Reader Advisories" at the end of this news release for additional cautionary language, explanations and discussion.

The estimated recoverable hydrocarbon contingent resources contained in the Resource Study does include the proved and probable reserves independently-assigned at year-end 2010 at Waskahigan. To recap, 1.44 million barrels of oil equivalent of proved plus probable reserves (0.52 million proved) were assigned to the Company's Montney asset base at Waskahigan as at December 31, 2010. The Montney reserves assignment at year-end 2010 encompassed only three gross (3.0 net) sections of land or 8% of the Company's total 37 gross (37.0 net) contiguous sections of land. Details and disclosures regarding the Company's oil and gas reserves and other oil and gas information in accordance with NI 51-101 for the year ended December 31, 2010, is contained within the Company's Annual Information Form, which is available on RMP's SEDAR profile at www.sedar.com.

RMP has updated its corporate presentation and will be made available on the Company's website at www.rmpenergyinc.com. The Company presently has 84.26 million common shares outstanding.

Abbreviations

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Crude Oil and Natural Gas Liquids      Natural Gas and Natural Gas Liquids  
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bbl      barrel                        Mcf/d   thousand cubic feet per day  
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Mbbl     thousand barrels              NGLs    natural gas liquids          
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bbls/d   barrels per day               MMcf    million cubic feet           
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boe      barrels of oil equivalent     Bcf     billion cubic feet           
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Mboe     thousand barrels of oil                                            
         equivalent                                                         
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boe/d    barrels of oil equivalent                                          
         per day                                                            
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Reader Advisories

This news release contains references to estimates of crude oil and natural gas classified as discovered petroleum initially in-place in the Waskahigan area of West Central Alberta which are not, and should not be confused with, crude oil and natural gas reserves. "Discovered Petroleum Initially In-Place" is defined in the Canadian Oil and Gas Evaluation Handbook as the quantity of hydrocarbons that are estimated to be in-place within a known accumulation prior to production. There is no certainty that it will be economically viable to produce any portion of the resources. Continuous development through multi-year exploration and development programs and significant levels of future capital expenditures are required in order for additional resources to be recovered in the future. The principal risks that would inhibit the recovery of additional reserves relate to the potential for variations in the quality of the Montney formation where no current well data exists, limited access to capital, low commodity prices that would curtail the economics of development and the future performance of wells.

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. 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; uncertainties associated with estimating oil and natural gas reserves; competition for, among other things, capital, acquisitions, of reserves, undeveloped lands and skilled personnel; assessments of the value of acquisitions; 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. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. 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, reserves, resources 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.

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. Additionally, such rates may also include recovered "load oil" fluids used in well completion stimulation. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company.