RMP Energy Inc.

September 20, 2011 07:58 ET

RMP Announces Increased Capital Budget, Bought Deal Common Share Financing and Flow-Through Financing

CALGARY, ALBERTA--(Marketwire - Sept. 20, 2011) -


RMP Energy Inc. ("RMP" or the "Company") (TSX:RMP) is pleased to announce today that it has entered into an equity financing agreement on a "bought deal" basis (the "Equity Financing"). Pursuant to the terms of the Equity Financing, RMP will issue, on an underwritten basis, 9,303,000 common shares at a price of $2.15 per share for total gross proceeds of $20.0 million. The Equity Financing will be underwritten by a syndicate of underwriters led by GMP Securities L.P., and including FirstEnergy Capital Corp., National Bank Financial Inc., Peters & Co. Limited, AltaCorp Capital Inc., Cormark Securities Inc., CIBC World Markets Inc. and Scotia Capital Inc. The Equity Financing is subject to customary stock exchange approval. The common shares will be offered in all provinces of Canada (except Quebec), by way of a short form prospectus and the common shares may be sold in the United States on a private placement basis pursuant to exemptions from registration requirements. The Equity Financing is expected to close on or about October 12, 2011.

Concurrently, RMP has also entered into an agreement with third party investors, pursuant to which the Company will issue on a non-brokered private placement basis up to an aggregate 1,688,000 common shares on a flow through basis with respect to Canadian development expenses at a price of $2.37 per share and up to 388,000 common shares on a flow through basis with respect to Canadian exploration expenses at a price of $2.58 per share, for aggregate gross proceeds of $5.0 million (the "Flow Through Financing"). The Flow Through Financing is subject to customary stock exchange approval. The Flow Through Financing is expected to close on or about October 12, 2011. The gross proceeds of the Flow Through Financing will be used to fund ongoing exploration and development activities eligible for Canadian exploration and development expenses, which will be renounced to subscribers of the flow-through common shares effective on or before December 31, 2011.

The proceeds of both financings will be used to fund an expanded 2011 capital expenditures program, wherein the Company has increased its exploration and development budget to approximately $100 million from $75 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.

This news release is not for dissemination in the United States or to any United States news services.

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.

After giving effect to both financings, RMP will have 95.64 million common shares issued and outstanding. RMP has an updated corporate presentation available on the Company's website at www.rmpenergyinc.com.

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. More particularly, and without limitation, this news release contains forward looking statements and information concerning the anticipated closing dates for the financings and the deployment of capital by RMP. 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 in a timely manner 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.

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