Renegade Petroleum Ltd.
TSX VENTURE : RPL

Renegade Petroleum Ltd.

April 16, 2012 07:00 ET

Renegade Petroleum Ltd. Announces Year-End 2011 Results

CALGARY, ALBERTA--(Marketwire - April 16, 2012) - Renegade Petroleum Ltd. ("Renegade" or the "Company") (TSX VENTURE:RPL) is pleased to announce it has filed on SEDAR its audited annual consolidated financial statements ("Financial Statements") and related management's discussion and analysis ("MD&A") for the three months and year ended December 31, 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 www.renegadepetroleum.com or www.sedar.com.

FINANCIAL & OPERATING HIGHLIGHTS
Three months ended December 31 , Year Ended December 31 ,
2011 2010 % change 2011 2010 %change
Financial (000's except per share amounts)
Petroleum and natural gas sales 30,327 10,536 188 80,031 29,201 174
Funds flow from operations (1) 16,178 3,688 339 39,994 9,434 324
Per share - basic 0.21 0.07 200 0.56 0.21 167
Per share - diluted 0.21 0.06 250 0.54 0.20 170
Net loss (103 ) (2,040 ) 95 (2,645 ) (9,285 ) 72
Per share - basic and diluted(2) (0.00 ) (0.04 ) n/a (0.04 ) (0.21 ) 81
Capital expenditures 31,842 31,582 1 111,923 157,906 (29 )
Net debt(3) 76,084 45,782 66 76,084 45,782 66
Weighted average shares outstanding(2)
Basic and diluted 77,308 54,973 41 72,060 44,186 63
Shares outstanding, end of period(2)
Basic 77,308 55,423 39
Diluted 86,595 62,576 38
Operating
Average daily production
Crude oil (bbls/d) 3,489 1,450 141 2,380 1,042 128
Natural gas (Mcf/d) 635 390 63 555 271 105
Natural gas liquids (bbls/d) 32 2 1,500 18 2 800
Total (boe/d) (4) 3,627 1,517 139 2,491 1,089 129
Average realized price
Crude oil and natural gas liquids ($/bbl) 93.27 76.32 22 91.07 74.05 23
Natural gas ($/mcf) 1.97 2.20 (10 ) 1.59 2.80 (43 )
Total ($/boe) (4) 90.89 75.49 20 88.04 73.40 20
Netback ($/boe)
Oil and gas sales 90.89 75.49 20 88.04 73.40 20
Royalties (14.31 ) (16.09 ) (11 ) (15.43 ) (13.24 ) 17
Operating expenses (14.21 ) (16.83 ) (16 ) (15.34 ) (18.13 ) (15 )
Transportation (2.97 ) (2.19 ) 36 (2.79 ) (2.60 ) 7
Operating Netback(4) 59.40 40.38 47 54.48 39.43 38
  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 International Financial Reporting Standards 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 and year ended December 31, 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. Current assets less current liabilities, excluding derivative financial instruments.
  4. 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.
2011 ACCOMPLISHMENTS
  • Achieved record average production of 3,627 boe per day for the three months ended December 31, 2011, up 139 percent from the comparable quarter of 2010 and 27 percent over the third quarter of 2011. Production for the three months ended December 31, 2011 consisted of 96 percent light oil and 4 percent natural gas and natural gas liquids;
  • Increased funds flow from operations by 339 percent to $16.2 million in the fourth quarter of 2011 from $3.7 million in the fourth quarter of 2010. Increased funds flow from operations per share by 200 percent to $0.21 per share in the fourth quarter of 2011 from $0.07 per share in the fourth quarter of 2010;
  • Increased cash flow from operating activities 238 percent to $19.4 million or $0.25 per share in the fourth quarter of 2011 from cash flow of $5.7 million or $0.10 per share in the fourth quarter of 2010;
  • Reduced operating expenses 9 percent to $14.21 per boe in the fourth quarter of 2011 from $15.63 per boe in the fourth quarter of 2010 and 3 percent quarter over quarter from $14.69 per boe in the third quarter of 2011;
  • Achieved an 88 percent success rate drilling 17 gross (14.3 net) wells in the fourth quarter of 2011 including 12 gross (9.3 net) in southeast Saskatchewan and Manitoba and 5 gross (5.0 net) in the Viking in west central Saskatchewan; and
  • Increased land position by 23,431 net acres of land in each of its core areas since the beginning of the fourth quarter, increasing the Company's total undeveloped land to approximately 137,000 net acres at December 31, 2011.
RESERVE HIGHLIGHTS
  • Increased December 31, 2011 total proved plus probable reserves 102 percent to 12.8 million boe and total proved reserves 103 percent to 8.5 million boe since December 31, 2010 reflecting Renegade's accretive oil acquisitions and its ability execute a strong capital development program on both existing and acquired light-oil assets;
  • Increased proved plus probable reserves by 46% and proved reserves by 47% on a fully diluted exit per share basis year over year;
  • Replaced 810% of production during the year on a proved plus probable basis and 570% on a proved basis based on a 2011 annual production average of 2,491 boe/d;
  • Generated a finding, development and acquisition recycle ratio of 2.0 times on a proved plus probable basis based on a 2011 annual operating netback of $54.48 (based on an $88.04 realized sales price per boe); and
  • Maintained a significant proved plus probable reserve life index of 9.2 years based on a 2011 exit production rate of approximately 3,800 boe/d.

Finding and development costs including acquisitions ("FD&A"), have been used above to arrive at the recycle ratio. While NI 51-101 requires the effects of acquisitions and dispositions be excluded, FD&A costs have been presented because acquisitions and dispositions can have a significant impact on the Company's ongoing reserve replacement costs and excluding these amounts could result in an inaccurate portrayal of the Company's cost structure. FD&A on a proved plus probable basis including change in future development costs ("FDC") used above is $27.64/boe. F&D costs, excluding acquisitions and dispositions on a proved plus probable basis including FDC is $30.87.

FIRST QUARTER 2012 HIGHLIGHTS

  • Entered into a new core area in the Alberta Slave Point and closed a strategic asset acquisition in the Slave Point on March 30, 2012 which provided Renegade with an additional 18.75 sections of land, processing facilities, water disposal and storage capacity, all season roads, and 113 square kilometers of 3D seismic. Including the acquisition, the Company's Slave Point land position is in excess of 50 net sections;
  • Continued to expand the Company's land position in its key focus areas. Current undeveloped land is approximately 175,000 net acres;
  • Completed an equity financing on March 30, 2012 for gross proceeds of approximately $50 million; and
  • Increased the credit facility from $80 million to $100 million in January 2012.

The Company is currently re-evaluating its 2012 capital budget and drilling program given the recent closing of the $50 million dollar equity financing and strategic asset acquisition in the Slave Point. Renegade expects to be in a position to provide an operational update, revised capital expenditure program and updated guidance in conjunction with the release of its first quarter 2012 financial results in mid-May 2012.

ANNUAL GENERAL MEETING

Renegade's Annual General Meeting is scheduled for 3:00pm on Wednesday June 27, 2012 at the Petroleum Club, McMurray Room, located at 319 - 5th Avenue SW, Calgary, Alberta.

CORPORATE INFORMATION

Renegade's common shares trade on the TSX Venture Exchange under the symbol RPL. Renegade currently has approximately 89.6 million shares outstanding and 98.8 million fully-diluted shares.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Renegade.

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

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