Click here to close now.




















Welcome!

News Feed Item

Renegade Petroleum Ltd. Announces a $58 Million Capital Budget Targeting $77 Million in Funds from Operations

CALGARY, ALBERTA -- (Marketwired) -- 02/04/14 -- Renegade Petroleum Ltd. ("Renegade" or the "Company") (TSX VENTURE: RPL) announced today that its Board of Directors has approved a $57.7 million capital budget for 2014 directed at exploitation of its high quality light-oil assets in southeast and west central Saskatchewan. This capital program is consistent with the Company's long-term objectives of drilling low-risk, high impact wells while maintaining a strong focus on cost reduction in all areas and safe-guarding the dividend.

2014 CAPITAL BUDGET STRATEGIC OBJECTIVES


Profitability        - 97% light-oil with top tier operating netbacks
Sustainability       - 25% corporate declines
                     - Strong capital efficiencies in core areas
Cost Reduction       - Renewed focus on reduction of G&A and operating costs
Sustainable Dividend - 27% dividend payout ratio
                     - 102% all-in payout ratio
Long-Term Growth     - 260+ net light-oil development drilling locations

2014 GUIDANCE

The 2014 capital program is designed to position Renegade for long-term sustainable production, reserve replacement and funds flow from operations with a focus on sustainable dividend payments.

The $57.7 million capital program and the expected dividend payment of $20.6 million are forecasted to be substantially funded through the Company's funds flow from operations with an all-in annual payout ratio estimated at 102%.

Management is pleased to provide the following estimated 2014 guidance:(1)(2)


----------------------------------------------------------------------------
Average Production (boe/d)                                     5,700 - 5,900
Percentage Light-Oil and NGL Weighting (%)                                97
----------------------------------------------------------------------------
Funds Flow From Operations ($000)                                       76.6
Funds Flow From Operations Per Diluted Share ($)(3)                     0.36
Exit Net Debt ($000)                                                   150.8
Bank Line ($000)(2)                                                    250.0
----------------------------------------------------------------------------
Total Capital Expenditures ($000)                                       57.7
----------------------------------------------------------------------------
Annual Cash Dividends ($000)                                            20.6
Annual Cash Dividends Per Basic Share ($)                               0.10
Total All-In Payout Ratio (%)                                            102
----------------------------------------------------------------------------
 (1) Based on a WTI USD$95/bbl, CAD/USD exchange rate of 0.94, Edmonton Par
     price of C$92/bbl and an AECO gas price of C$2.00 with 4,000 bbl/d of
     2014 production hedged at an average price of C$92.46
(2)  Pending the successful closing of the previously announced $109 million
     asset disposition
(3)  Based on 209.9 million fully diluted shares currently outstanding

The Company maintains a disciplined hedging program in order to provide certainty over the funds flow from operations used to fund the capital program and protect the long-term viability of its dividend payments. Renegade has 4,000 bbl/d of 2014 production hedged at WTI C$92.46 per barrel.

2014 Capital Forecast

In southeast Saskatchewan, Renegade plans to drill 18 gross (16.0 net) wells across the Company's recently high-graded land position which represents approximately 54% of the Company's 2014 development budget. In the west central Saskatchewan Viking play, Renegade plans to drill 21 gross (20.0 net) wells which represent approximately 46% of the Company's 2014 development budget.

The breakdown of the 2014 capital expenditures program is set forth below:


                                                   2014
                                             ----------
Development Capital ($000)                       43,106
Maintenance Capital ($000)                       10,133
Land and Seismic ($000)                           3,000
Corporate ($000)                                  1,444
-------------------------------------------------------
Total Capital Expenditures ($000)                57,680

OPERATIONS UPDATE

Based on field estimates, Renegade's annualized 2013 production average was 7,450 boe/d which is within the Company's previously disclosed guidance of 7,400 to 7,700 boe/d. During the fourth quarter of 2013, the key operational focus was managing the capital program in areas that provided strong capital efficiencies, defined additional low risk drilling inventory and completed the company's flow through commitment.

Renegade drilled a total of 5 gross (3.5 net) development wells in the fourth quarter of 2013, bringing the 2014 development total to 53 gross (46.8 net) wells of which 17 gross (11.3 net) were in drilled in southeast Saskatchewan and 36 gross (35.5 net) were drilled in west central Saskatchewan.

Strategically, as part of the companies flow through obligations, Renegade completed the acquisition of over 190 sq kms of 3D seismic and an additional 4 gross (4.0 net) vertical test wells were drilled on the asset base during the fourth quarter of 2013. The vertical delineation wells and the acquisition of seismic data will be used to further de-risk the existing land base and provide support for future drilling inventory with a focus on the Frobisher and Alida trends in southeast Saskatchewan.

To date in 2014, the Company has been actively drilling in both fields with 2 gross (1.6 net) wells drilled in southeast Saskatchewan and 9 gross (9.0 net) in the Viking, all of which are in various stages of completion and being brought on production. For the remainder of the quarter, Renegade will be active with one drilling rig in southeast Saskatchewan.

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.

Renegade is also pleased to announce that it has updated its corporate presentation which is available at www.renegadepetroleum.com.

READER ADVISORIES

Forward-Looking Statements

This press release contains forward-looking statements. More particularly, this press release contains statements concerning, but not limited to, Renegade's long-term objectives, Renegade's plans to continue to create value for shareholders by investing in low-risk, high rate of return projects, Renegade's capital expenditure program, Renegade's capital budget strategic objectives (including projected commodity mix, corporate declines, capital efficiencies, focus on reduction of G&A and operating costs, dividend payout ratio, all-in payout ratio and number of development drilling locations), Renegade's drilling plans, the expected ability of Renegade to execute on its exploration and development program, anticipated dividend payments, expected sources of funding for capital program and dividend payments, potential drilling locations and drilling plans, expected well economics, commodity pricing and Renegade's anticipated production (both in terms of quantity and raw attributes), funds flow from operations, operating net backs, pay-out ratio net debt, dividends and capital expenditures for 2014, anticipated use of vertical delineation wells and the acquisition of seismic date on Renegade's land base and drilling inventory and other similar matters.

The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Renegade, including: (i) with respect to capital expenditures, generally, and at particular locations, the availability of adequate and secure sources of funding for Renegade's proposed capital expenditure program and the availability of appropriate opportunities to deploy capital; (ii) with respect to drilling plans, the availability of drilling rigs, expectations and assumptions concerning the success of future drilling and development activities and prevailing commodity prices; (iii) with respect to Renegade's ability to execute on its exploration and development program, the performance of Renegade's personnel, the availability of capital and prevailing commodity prices; (iv) with respect to anticipated production, the ability to drill and operate wells on an economic basis, the performance of new and existing wells and risks typically associated with oil and gas exploration and production and that the Company's production volumes and assumptions related thereto are accurate in all material respects; (v) oil prices; (vi) currency exchange rates; (vii) royalty rates; (viii) operating costs; and (ix) transportation costs.

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, the failure to obtain necessary regulatory approvals, 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; 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), changes in general economic, market and business conditions; actions by governmental or regulatory authorities including increasing taxes and changes in investment or other regulations; Renegade's success at acquisition, exploitation and development of reserves; unexpected drilling results; individual well productivity; the lack of availability of qualified personnel or management; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; and ability to access sufficient capital from internal and external sources.

Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide shareholders with a more complete perspective on Renegade's future operations and such information may not be appropriate for other purposes. Readers are cautioned that the foregoing lists of factors are not exhaustive. The forward-looking statements contained in this document are made as of the date hereof and Renegade is not under any 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. Please refer to Renegade's Annual Information Form dated April 29, 2013 for additional risk factors relating to Renegade, which is available for viewing on www.sedar.com.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities issued pursuant to the plan of arrangement and financing described herein have not been and will not be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from such registration.

Dividends

The payment and the amount of dividends declared in any month will be subject to the discretion of the board of directors and will depend on the board of director's assessment of Renegade's outlook for growth, capital expenditure requirements, funds from operations, potential acquisition opportunities, debt position and other conditions that the board of directors may consider relevant at such future time. The amount of future cash dividends, if any, may also vary depending on a variety of factors, including fluctuations in commodity prices and differentials, production levels, capital expenditure requirements, debt service requirements, operating costs, royalty burdens and foreign exchange rates.

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.

Non-IFRS Measures

The Company discloses several financial measures that do not have any standardized meaning prescribed under International Financial Reporting Standards ("IFRS"). These financial measures include funds from operations and funds flow from operations per diluted share. Management believes that these financial measures are useful supplemental information to analyze operating performance and provide an indication of the results generated by the Company's principal business activities. Investors should be cautioned that these measures should not be construed as an alternative to net income, cash provided by operating activities or other measures of financial performance as determined in accordance with IFRS. The Company's method of calculating these measures may differ from other companies, and accordingly, they may not be comparable to similar measures used by other companies. Please see the Company's most recent Management's Discussion and Analysis, which is available at www.sedar.com for additional information about these financial measures.

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 Financial Officer
(403) 930-1102

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

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
Red Hat is investing in Tesora, the number one contributor to OpenStack Trove Database as a Service (DBaaS) also ranked among the top 20 companies contributing to OpenStack overall. Tesora, the company bringing OpenStack Trove Database as a Service (DBaaS) to the enterprise, has announced that Red Hat and others have invested in the company as a part of Tesora's latest funding round. The funding agreement expands on the ongoing collaboration between Tesora and Red Hat, which dates back to Febr...
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of I...
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, will provide the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” uses open source attack tools that are free and available for download by anybody. Attendees will learn where to find and how to operate these tools for the purpose of testing their own IT infrastructu...
SYS-CON Events announced today that DataClear Inc. will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The DataClear ‘BlackBox’ is the only solution that moves your PC, browsing and data out of the United States and away from prying (and spying) eyes. Its solution automatically builds you a clean, on-demand, virus free, new virtual cloud based PC outside of the United States, and wipes it clean...
It’s been proven time and time again that in tech, diversity drives greater innovation, better team productivity and greater profits and market share. So what can we do in our DevOps teams to embrace diversity and help transform the culture of development and operations into a true “DevOps” team? In her session at DevOps Summit, Stefana Muller, Director, Product Management – Continuous Delivery at CA Technologies, answered that question citing examples, showing how to create opportunities for ...
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
A producer of the first smartphones and tablets, presenter Lee M. Williams will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. In his session at @ThingsExpo, Lee Williams, COO of ETwater, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ET...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, will discuss how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a prac...
Cloud and datacenter migration innovator AppZero has joined the Microsoft Enterprise Cloud Alliance Program. AppZero is a fast, flexible way to move Windows Server applications from any source machine – physical or virtual – to any destination server, in any cloud or datacenter, using its patented container technology. AppZero’s container is also called a Virtual Application Appliance (VAA). To facilitate Microsoft Azure onboarding, AppZero has two purpose-built offerings: AppZero SP for Azure,...
WSM International, the pioneer and leader in server migration services, has announced an agreement with WHOA.com, a leader in providing secure public, private and hybrid cloud computing services. Under terms of the agreement, WSM will provide migration services to WHOA.com customers to relocate some or all of their applications, digital assets, and other computing workloads to WHOA.com enterprise-class, secure cloud infrastructure. The migration services include detailed evaluation and planning...
This Enterprise Strategy Group lab validation report of the NEC Express5800/R320 server with Intel® Xeon® processor presents the benefits of 99.999% uptime NEC fault-tolerant servers that lower overall virtualized server total cost of ownership. This report also includes survey data on the significant costs associated with system outages impacting enterprise and web applications. Click Here to Download Report Now!
IBM’s Blue Box Cloud, powered by OpenStack, is now available in any of IBM’s globally integrated cloud data centers running SoftLayer infrastructure. Less than 90 days after its acquisition of Blue Box, IBM has integrated its Blue Box Cloud Dedicated private-cloud-as-a-service into its broader portfolio of OpenStack® based solutions. The announcement, made today at the OpenStack Silicon Valley event, further highlights IBM’s continued support to deliver OpenStack solutions across all cloud depl...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advance...