Welcome!

News Feed Item

Renegade Petroleum Ltd. Announces Strategic $109.0 Million Asset Disposition and Confirms January 2014 Dividend

CALGARY, ALBERTA -- (Marketwired) -- 01/13/14 -- Renegade Petroleum Ltd. ("Renegade" or the "Company") (TSX VENTURE: RPL) is pleased to announce that it has entered into an agreement to sell certain oil and gas assets for gross proceeds of $109.0 million and is pleased to confirm its January 2014 dividend.

ASSET DISPOSITION

The Company has entered into a definitive agreement to sell certain oil and gas assets in southeast Saskatchewan (the "Disposition Assets") effective January 1, 2014 for gross proceeds of $109.0 million (the "Disposition"). Through the Disposition, Renegade further continues to high-grade its asset base by divesting of mature fields that were identified early on in the strategic review as being appropriate to divest.

The Disposition Assets currently produce approximately 1,450 boe/d (95% oil and natural gas liquids), which includes approximately 200 boe/d of flush production from wells recently brought on production. The forecasted annualized 2014 production rate on the Disposition Assets is approximately 1,225 boe/d (95% oil and natural gas liquids).

The proceeds from the Disposition will be used to repay a significant portion of the current indebtedness drawn under Renegade's credit facility. Through preliminary discussions with the Company's lenders, the credit facility is expected to be reduced by approximately $60.0 million to $250.0 million as a result of the borrowing base review post-Disposition, leaving approximately $115.0 million in undrawn availability.

The Disposition significantly strengthens and re-positions Renegade while providing the following strategic benefits:


--  retains Renegade's highest quality, low decline assets;

--  material reduction in leverage, reducing Renegade's pro forma net debt
    to 2014 estimated cash flow to less than 2.0x;

--  material increase in financial flexibility, with over $115 million of
    pro forma undrawn credit availability and a post disposition facility in
    excess of 45% undrawn;

--  significantly reduces interest expense and further improves Renegade's
    sector leading operating netbacks;

--  attractive transaction metrics relative to comparable transactions of
    similar asset quality and operating characteristics;

--  high grades and further concentrates the southeast Saskatchewan asset
    base;

--  maintains Renegade's attractive pro forma sustainability; and

--  reduces the operating expenses and sustaining capital requirements,
    further enhancing dividend sustainability.

The Disposition is part of the Company's ongoing strategic review process and further demonstrates the board and management's continued efforts to increase Renegade's financial flexibility, prudently manage the balance sheet and support the current dividend level. Since the commencement of the strategic review, Renegade has significantly reduced its indebtedness through the disposition of assets for aggregate gross proceeds of $160.5 million. Renegade remains committed to continue reviewing strategic alternatives with the goal of further enhancing shareholder value.

The Disposition has the following characteristics:


----------------------------------------------------------------------------
Gross Proceeds                                                $109.0 million
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Production (approx. 95% oil and natural gas
 liquids)                                                     1,450 boe/d(1)
                                                              1,225 boe/d(2)
----------------------------------------------------------------------------
Undeveloped Land                                            12,227 net acres
----------------------------------------------------------------------------
Total Proved Reserves(3)                                          4,153 mboe
----------------------------------------------------------------------------
Total Proved Plus Probable Reserves ("2P")(3)                     5,618 mboe
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Implied Metrics:
----------------------------------------------------------------------------
Price / Flowing BOE                                 approx. $75,172/boe/d(1)
                                                    approx. $88,980/boe/d(2)
----------------------------------------------------------------------------
Price / Cash Flow(4)                                           approx. 6.15x
----------------------------------------------------------------------------
Price / Proved Reserves                                               $26.25
----------------------------------------------------------------------------
Price / 2P Reserves                                                   $19.40
----------------------------------------------------------------------------
2P Recycle Ratio(5)                                                     2.15
----------------------------------------------------------------------------
 1.  Includes approximately 200 boe/d of flush production from wells
     recently brought on production.
 2.  Based on forecasted 2014 annualized volumes.
 3.  Based on Renegade's December 31, 2012 reserve report. Does not include
     2013 volumes produced, 2013 reserve changes or operational activities.
 4.  Based on forecasted 2014 annualized volumes of 1,225 boe/d, realized
     weighted average price of $82.18, corporate netbacks of $39.64/boe
     which include general and administrative costs of $2.00/boe.
 5.  Based on an operating netback of $41.64/boe.

Macquarie Capital Markets Canada Ltd. and TD Securities Inc. acted as joint financial advisors to Renegade in respect of the Disposition. The Disposition is expected to close in early March, 2014, subject to standard industry closing conditions.

DIVIDEND

Renegade is pleased to announce that a cash dividend in the amount of $0.008333 per share ($0.10 annualized) will be paid on February 17, 2014 to shareholders of record as of January 31, 2014. The ex-dividend date is January 29, 2014.

These dividends are designated as "eligible dividends" for Canadian income tax purposes.

CORPORATE INFORMATION

Renegade is a light oil focused development and production company with assets located in Saskatchewan, Alberta, Manitoba and North Dakota. Renegade's common shares trade on the TSX Venture Exchange under the symbol RPL.

READER ADVISORIES

Forward-Looking Statements

This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. Specifically, this news release contains forward-looking information regarding the characteristics of the Disposition Assets, the Company's strategic plans, the Company's development plans, future capital allocation, the Disposition and the use of proceeds therefrom, the anticipated timing of closing of the Disposition and expected changes to Renegade's credit facility. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Renegade. In addition, statements relating to "reserves" are, by their nature, forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be profitably produced in the future.

Although Renegade believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Renegade can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Certain of these risks are set out in more detail in Renegade's Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com and Renegade's other public disclosure documents which have been filed on SEDAR and can be accessed at www.sedar.com.

The forward-looking statements contained in this press release are made as of the date hereof and Renegade undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Conversion

The term "boe" may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one boe (6 mcf/bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this report are derived from converting gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
Renegade Petroleum Ltd.
Andrew Greenslade
Interim Chief Executive Officer
(403) 930-1102

Renegade Petroleum Ltd.
Mark Lobello
Interim Chief Financial Officer
(403) 355-8921

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Deploying applications in hybrid cloud environments is hard work. Your team spends most of the time maintaining your infrastructure, configuring dev/test and production environments, and deploying applications across environments – which can be both time consuming and error prone. But what if you could automate provisioning and deployment to deliver error free environments faster? What could you do with your free time?
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
The competitive landscape of the global cloud computing market in the healthcare industry is crowded due to the presence of a large number of players. The large number of participants has led to the fragmented nature of the market. Some of the major players operating in the global cloud computing market in the healthcare industry are Cisco Systems Inc., Carestream Health Inc., Carecloud Corp., AGFA Healthcare, IBM Corp., Cleardata Networks, Merge Healthcare Inc., Microsoft Corp., Intel Corp., an...
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t. Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
Ovum, a leading technology analyst firm, has published an in-depth report, Ovum Decision Matrix: Selecting a DevOps Release Management Solution, 2016–17. The report focuses on the automation aspects of DevOps, Release Management and compares solutions from the leading vendors.
Continuous testing helps bridge the gap between developing quickly and maintaining high quality products. But to implement continuous testing, CTOs must take a strategic approach to building a testing infrastructure and toolset that empowers their team to move fast. Download our guide to laying the groundwork for a scalable continuous testing strategy.