RMP Energy Provides Bank Credit Facility Update
RMP Energy Inc. (“RMP” or the “Company“) (RMP.TO) is pleased to announce today that its bank syndicate group (the “Lenders“), in accordance with the annual redetermination process, has reaffirmed the existing $175 million conforming borrowing base under RMP’s revolving credit facility. The bank credit facility represents the maximum amount that can be borrowed and is primarily based on: the Lender’s assessment and analysis of RMP’s proved crude oil and natural gas reserves, the Company’s results of operations, and the Lenders forecasted commodity prices. The borrowings under the bank credit facility are available on a fully-revolving basis for a period of at least 364 days until July 22, 2016, at which time RMP can request approval by the Lenders for an extension for an additional 364 day cycle.
RMP is pleased with the results of the borrowing base redetermination, which substantiates the quality of the Company’s Montney light oil assets in West Central Alberta. RMP’s industry-leading low cost structure, in conjunction with the reaffirmed bank credit facility, provides continued financial flexibility and monetary strength for the Company. The next borrowing base redetermination is scheduled to occur on or before November 30, 2015.