RMP Energy Inc. is jettisoning assets to emerge debt-free with a Montney Shale focus, the company said Oct. 31.

The Calgary, Alberta-based company entered an agreement to sell all of its oil and natural gas interests in the Ante Creek area of West Central Alberta to an undisclosed company for C$114.3 million. Proceeds will be used to eliminate outstanding bank debt, the company said.

The Ante Creek assets include 69,888 net acres of land acreage and infrastructure facility and pipeline interests. Third-quarter production was about 4,300 barrels of oil equivalent per day (45% crude oil and NGL).

The divested assets represented about 53% of the RMP's average corporate production for the quarter.

The sale is a result of the company's strategic review initiated Aug. 4. FirstEnergy Capital Corp., now known as GMP Securities LP, coordinated and led the process. Scotia Waterous Inc. was also an adviser.

Upon the completion of the sale, RMP will hold a highly prospective land position of 77.5 net sections and related infrastructure on an emerging Montney play at Gold Creek and low-risk Montney development inventory at Waskahigan in West Central Alberta. In addition, the company's other remaining noncore assets will include Kaybob, Gilby and Pine Creek.

The company said it will also have no bank debt and positive working capital with an indicative bank credit facility of C$40 million.

The effective date of the Ante Creek Disposition is Sept. 1, and is expected to close on or about Nov. 15.