Renegade Petroleum Ltd.

Renegade Petroleum Ltd.

October 13, 2010 08:35 ET

Renegade Petroleum Ltd. Announces Closing of $20 Million Bought Deal Financing and $2 Million Non-Brokered Private Placement

CALGARY, ALBERTA--(Marketwire - Oct. 13, 2010) -


Renegade Petroleum Ltd. ("Renegade" or the "Company") (TSX VENTURE:RPL) is pleased to announce that it has closed its recently announced bought deal prospectus offering of 3,031,000 common shares at a price of $3.30 per share and 2,440,000 common shares issued on a "flow-through" basis under the Income Tax Act (Canada) with respect to Canadian exploration expenses at a price of $4.10 per share, for aggregate gross proceeds of approximately $20 million. The underwriting syndicate was co-led by GMP Securities L.P. and Canaccord Genuity Corp. and included Dundee Securities Corporation, FirstEnergy Capital Corp., Paradigm Capital Inc., Macquarie Capital Markets Canada Ltd., Haywood Securities Inc. and Raymond James Ltd.

Additionally, Renegade is pleased to announce that it has closed its recently announced non-brokered private placement of 534,000 common shares issued on a "flow-through" basis under the Income Tax Act (Canada) with respect to Canadian development expenses, at a price of $3.75 per share for gross proceeds of approximately $2 million. These shares are subject to a four month hold expiring on February 14, 2011.

The net proceeds from these financings will be used to further accelerate the Company's 2010/2011 capital exploration and development program and for general corporate purposes. These expenditures will include the incurring of Canadian exploration and development expenses to satisfy its obligations in connection with the "flow-through" shares issued pursuant to the financings described above.


Renegade's common shares trade on the TSX Venture Exchange under the symbol RPL. Renegade currently has approximately 62.4 million fully diluted shares outstanding. The Company's presentation can be viewed on its website at


This press release contains forward-looking statements. More particularly, this press release contains forward-looking statements related to the intended use of the net proceeds raised pursuant to the financings described herein.

The forward-looking statements are based on Renegade's current beliefs as well as assumptions made by, and information currently available to, Renegade concerning, among other things, anticipated financial performance, business prospects, strategies, regulatory developments, future commodity prices, future production levels, the ability to obtain equipment in a timely manner to carry out exploration and development activities, the ability to market oil and natural gas successfully to current and new customers, the impact of increasing competition, the ability to obtain financing on acceptable terms, and the ability to add production and reserves through the acquisition of assets and development and exploration activities.

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 oil and gas exploration, financial risks, substantial capital requirements, bank financing, government regulation, environmental matters, prices, markets and marketing, dependence on key personnel, availability of drilling equipment and access, uninsurable risks, management of growth, expiration of licenses and leases, reserves estimates, seasonality, competition, conflicts of interest, issuance of debt, title to properties, variations in exchange rates and hedging and uncertainty in global financial markets.

Additionally, due to the nature of the oil and natural gas industry, budgets are regularly reviewed in light of the success of expenditures and other opportunities which may become available to Renegade. Notwithstanding the Company's current intentions regarding the use of the net proceeds described above, there may be circumstances where a reallocation of funds may be necessary. While the Company anticipates that it will spend the funds available to it as set forth above, there may be circumstances where, for sound business reasons, a reallocation of the net proceeds may be necessary.

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.

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
    Renegade Petroleum Ltd.
    Alex Wylie
    Vice-President, Finance & CFO
    (403) 410-3376