Renegade Petroleum Ltd.
TSX VENTURE : RPL

Renegade Petroleum Ltd.

September 23, 2010 08:08 ET

Renegade Petroleum Ltd. Announces $22 Million Dollar Financing

CALGARY, ALBERTA--(Marketwire - Sept. 23, 2010) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Renegade Petroleum Ltd. ("Renegade" or the "Company") (TSX VENTURE:RPL) is pleased to announce it has entered into an agreement with a syndicate of underwriters, co-led by GMP Securities L.P. and Canaccord Genuity Corp. and including Dundee Securities Corporation, FirstEnergy Capital Corp., Paradigm Capital Inc., Macquarie Capital Markets Canada Ltd., Haywood Securities Inc., and Raymond James Ltd. (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase for resale to the public, on a bought deal basis, 3,031,000 common shares of Renegade ("Common Shares") at a price of $3.30 per Common Share for gross proceeds of approximately $10 million and 2,440,000 Common Shares, to be issued on a "flow-through" basis under the Income Tax Act (Canada) with respect to Canadian exploration expense ("CEE Flow-Through Common Shares"), at a price of $4.10 per CEE Flow-Through Common Share for additional gross proceeds of approximately $10 million (collectively, the "Bought Deal Financing"). The Bought Deal Financing is for aggregate gross proceeds of approximately $20 million.

Concurrent with the Bought Deal Financing, Renegade will offer, on a non-brokered private placement basis (the "Private Placement"), up to 534,000 Common Shares to be issued on a "flow-through" basis under the Income Tax Act (Canada) with respect to Canadian development expense ("CDE Flow-Through Common Shares"), at a price of $3.75 per CDE Flow-Through Common Share for gross proceeds of approximately $2 million. The CDE Flow-Through Common Shares will be subject to a four month hold.

The net proceeds from the Bought Deal Financing and Private Placement will be used to further accelerate the Company's 2010/2011 capital exploration and development program and for general corporate purposes. Closing of the Bought Deal Financing and Private Placement are subject to customary conditions and regulatory approvals, including the qualification for distribution of the Common Shares and CEE Flow-Through Common Shares by way of short form prospectus in all of the provinces of Canada other than Quebec and the approval of the TSX Venture Exchange, and is expected to occur on or about October 13, 2010. 

CORPORATE INFORMATION

Renegade's common shares trade on the TSX Venture Exchange under the symbol RPL. Renegade currently has approximately 56.4 million fully diluted shares outstanding. The Company's presentation can be viewed on its website at www.renegadepetroleum.com.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements. More particularly, this press release contains forward-looking statements related to the anticipated closing of the Bought Deal Financing and Private Placement.

The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Renegade, including: expectations and assumptions concerning receipt of required regulatory approvals and the satisfaction of other conditions to the completion of and use of proceeds from the Bought Deal Financing and Private Placement.

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 or satisfy the conditions to closing the Bought Deal Financing and Private Placement.

The forward-looking statements contained in this document 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.

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.

Contact Information

  • Renegade Petroleum Ltd.
    Michael Erickson
    President & CEO
    (403) 355-8922
    or
    Renegade Petroleum Ltd.
    Alex Wylie
    Vice-President, Finance & CFO
    (403) 410-3376