Renegade Petroleum Ltd.
TSX VENTURE : RPL

Renegade Petroleum Ltd.

February 15, 2011 09:00 ET

Renegade Petroleum Ltd. Announces Operational Update

CALGARY, ALBERTA--(Marketwire - Feb. 15, 2011) -

THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY UNITED STATES NEWS SERVICES.

Renegade Petroleum Ltd. ("Renegade" or the "Company") (TSX VENTURE:RPL) is pleased to announce substantial increases in its production as a result of a successful fouth quarter drilling program and early 2011 success.

OPERATIONAL HIGHLIGHTS

The Company has not released its audited 2010 financial results and accordingly the numbers included in the calculations below are currently estimates and unaudited.

  • Based on field estimates, the Company's current production is approximately 2,100 boepd;
  • Estimated operating costs for the fourth quarter of 2010 are expected to be approximately $17.50 per boe. Operating costs have decreased by 38% from a high of $28.35 per boe in the third quarter of 2010;
  • During the fourth quarter of 2010 and to date in the first quarter of 2011, the Company participated in the drilling of 25.0 gross (17.3 net) wells with a 96% success rate;
  • The Company drilled and cased its first Bakken well in North Dakota. The Company is awaiting services to frac the well. The Company currently holds 31,000 gross (15,500 net) acres of land in Renville County; and
  • The Company has acquired 20,036 gross (18,330 net) acres of land through land sales and freehold acquisitions since the beginning of the fourth quarter and to date in the first quarter of 2011, bringing the Company's total net undeveloped acres up to 82,400 acres.

OPERATIONS UPDATE

Renegade was active in a number of areas, successfully executing drilling and recompletion programs while optimizing existing light oil production during the fourth quarter of 2010 and into 2011. The majority of its facilities work was completed by the end of the fourth quarter of 2010, as a result operating costs are expected to be approximately $17.50 per boe.

The company continued it's focus on the Viking zone in the Dodsland area, the Bakken and Mississippian zones in Southeast Saskatchewan, the Spearfish zone in Manitoba and the Bakken zone in North Dakota.

During the the fourth quarter and to date in the first quarter of 2011, Renegade drilled 25 gross (17.3 net) wells including 13.0 gross (6.3 net) wells in the Viking in Dodsland, 1.0 gross (1.0 net) well in the Bakken in Huntoon, 1.0 gross (1.0 net) Spearfish well in the Waskada field in Manitoba, 8.0 gross (7.5 net) Missisipian wells in Hastings/Alameda, 1.0 gross (1.0 net) Mississipian well in Wordsworth, and 1.0 gross (0.5 net) Bakken well in North Dakota.

Renegade anticipates drilling an additional 10.0 gross (8.1 net) wells during the remainder of the first quarter of 2011 depending on the timing of break-up.

CORPORATE INFORMATION

Renegade's common shares trade on the TSX Venture Exchange under the symbol RPL. Renegade currently has approximately 55.4 million shares outstanding and 62.6 million fully-diluted shares. The Company's presentation can be viewed on its website at www.renegadepetroleum.com.

FORWARD-LOOKING STATEMENTS

Information set forth in this press release contains forward-looking statements. More particularly, this press release contains forward-looking statements related to current production, timing of brining on production, operating costs, and expected drilling plans.

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).

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