Closing of Equity FinancingsRMP Energy Announces Closing of Equity Financings
CALGARY, ALBERTA, Oct 12, 2011 (Marketwire via COMTEX News Network) --
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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.