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
What's the role of an IT self-service portal when you get to continuous delivery and Infrastructure as Code? This general session showed how to create the continuous delivery culture and eight accelerators for leading the change. Don Demcsak is a DevOps and Cloud Native Modernization Principal for Dell EMC based out of New Jersey. He is a former, long time, Microsoft Most Valuable Professional, specializing in building and architecting Application Delivery Pipelines for hybrid legacy, and cloud ...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists looked at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deliver...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
SYS-CON Events announced today that Cloud Academy named "Bronze Sponsor" of 21st International Cloud Expo which will take place October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara, CA. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud com...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 21st Int\ernational Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their ...
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA