Renegade Petroleum Ltd.

Renegade Petroleum Ltd.

August 18, 2011 07:00 ET

Renegade Petroleum Ltd. Announces Second Quarter 2011 Results

CALGARY, ALBERTA--(Marketwire - Aug. 18, 2011) - Renegade Petroleum Ltd. ("Renegade" or the "Company") (TSX VENTURE:RPL) is pleased to announce it has filed on SEDAR its interim consolidated financial statements ("Financial Statements") and related management's discussion and analysis ("MD&A") for the three and six months ended June 30, 2011. Selected financial and operational information is outlined below and should be read in conjunction with the financial statements and related MD&A which are available for review at or

Three months ended June 30, Six months ended June 30,
2011 2010 %
2011 2010 %
Financial (000's except per share amounts)
Petroleum and natural gas sales 14,588 6,126 138 27,224 10,057 171
Funds flow from operations (1) 7,276 2,419 201 12,745 4,143 208
Per share - basic 0.10 0.06 67 0.19 0.11 73
Per share - diluted 0.09 0.05 80 0.19 0.11 73
Net loss (1,040) (2,923) (64) (1,925) (4,958) (61)
Per share – basic and diluted(2) (0.01) (0.07) (86) (0.03) (0.13) (77)
Capital expenditures 24,950 64,650 (61) 41,083 105,685 (61)
Net debt (surplus) 30,818 45,782 (33) 30,818 45,782 (33)
Weighted average shares outstanding(2)
Basic 77,666 43,384 79 66,724 36,983 80
Diluted 77,666 43,384 79 66,724 36,983 80
Shares outstanding, end of period(2)
Basic 77,308 49,182 57
Diluted 84,529 55,954 51
Average Daily Production
Crude Oil (bbls/d) 1,601 908 76 1,641 722 127
Natural Gas (Mcf/d) 438 158 177 472 203 133
Natural gas liquids (bbls/d) 15 2 650 10 2 400
Total (boe/d) (3) 1,689 936 80 1,730 758 128
Average realized price
Crude oil and Natural Gas Liquids ($/bbl) 97.75 73.33 33 90.22 75.23 20
Natural Gas ($/mcf) 1.08 4.05 (73) 1.32 4.07 (68)
Total ($/boe) 94.71 71.92 32 86.51 72.91 19
Netback ($/boe)(3)
Oil and Gas Sales 94.71 71.92 32 86.51 72.91 19
Royalties (17.69) (10.79) 64 (15.84) (9.41) 68
Operating Expenses (17.87) (12.67) 41 (17.00) (11.67) 46
Transportation (2.93) (2.44) 20 (2.61) (2.37) 10
Operating Netback(3) 56.22 46.02 22 51.06 49.46 3
(1) "Funds flow from operations" should not be considered an alternative to, or more meaningful than, cash flow from operating activities as determined in accordance with IFRS as an indicator of Renegade's performance. "Funds flow from operations" represents cash flow from operating activities prior to changes in non-cash working capital, transaction costs and decommissioning provision expenditures incurred. Renegade also presents funds flow from operations per share whereby per share amounts are calculated using weighted average shares outstanding consistent with the calculation of earnings per share.
(2) Due to the anti-dilutive effect of Renegade's net loss for the three months ended June 30, 2011 and 2010, the diluted number of shares is equal to the basic number of shares. Therefore, diluted per share amounts of the net loss are equivalent to basic per share amounts.
(3) A conversion ratio of 1 barrel of oil equivalent ("boe"): 6 Mcf has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not necessarily represent a value equivalency at the wellhead. Boes may be misleading, particularly if used in isolation.


  • Achieved production of an of average 1,689 boe per day for the three months ended June 30, 2011, up 80 percent from the comparable quarter of 2010. Production for the three months ended June 30, 2011 consisted of 96 percent light oil and natural gas liquids and 4 percent natural gas;

  • Increased funds flow from operations 201 percent to $7.3 million in the second quarter of 2011 from $2.4 million in the second quarter of 2010;

  • Drilled 19.0 gross (19.0 net) wells in the second quarter of 2011 with a 100% success rate in the Viking in west central Saskatchewan;

  • The Company acquired of all of the issued and outstanding common shares of Petro Uno Resources Ltd. ("Petro Uno") on April 14, 2011 through the issuance of 11.8 million common shares of Renegade; and

  • Increased land position by 20,925 net acres of land in North Dakota, Manitoba, west central Saskatchewan and southeast Saskatchewan since the beginning of 2011 increasing the Company's total undeveloped land to 95,221 net acres.


Renegade's common shares trade on the TSX Venture Exchange under the symbol RPL. Renegade currently has approximately 77.3 million shares outstanding and 84.5 million fully-diluted shares.


This press release contains forward-looking statements. More particularly, this press release contains statements concerning Renegade's capital expenditure program, Renegade's drilling plans, the expected ability of Renegade to execute on its exploration and development program and Renegade's anticipated production (both in terms of quantity and raw attributes).

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; and (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 accounting risks typically associated with oil and gas exploration and production.

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. Please refer to Renegade's Annual Information Form dated April 28, 2011 (the "AIF") for additional risk factors relating to Renegade. The AIF is available for viewing on

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