Renegade Petroleum Ltd. Announces Third Quarter 2013 Results and Operational Update
November 18 2013 - 6:30AM
Marketwired Canada
Renegade Petroleum Ltd. ("Renegade" or the "Company") (TSX VENTURE:RPL), a light
oil focused exploration and production company with assets located in
Saskatchewan, Alberta, Manitoba and North Dakota, is pleased to announce it has
filed its condensed interim consolidated financial statements ("Financial
Statements") and related management's discussion and analysis ("MD&A") for the
three and nine month periods ended September 30, 2013 on SEDAR. 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.
THIRD QUARTER 2013 RESULTS
-- Achieved average production of 7,464 barrels of oil equivalent ("boe")
per day ("boe/d") for the three months ended September 30, 2013, up 5
percent from the second quarter of 2013. Production consisted of 96
percent light oil and 4 percent natural gas and natural gas liquids;
-- Increased funds flow from operations by 20 percent to $26.7 million in
the third quarter of 2013 from $22.2 million in the second quarter of
2013;
-- Drilled a total of 20 gross (18.5 net) wells in the third quarter
including 6 gross (5.0 net) in southeast Saskatchewan and 14 gross (13.5
net) in west central Saskatchewan, with a 100 percent success rate;
-- Brought 20 gross (18.1 net) wells onto production in the third quarter
including 2 gross (1.3 net) wells drilled in the second quarter of 2013;
-- Disposed of non-core petroleum and natural gas properties for total
proceeds of approximately $19.1 million; and
-- Based on the recent borrowing base review, the Company's lenders have
renewed the credit facility at $335 million. Of the $281.2 million of
net debt as at September 30, 2013, $264.5 million was drawn on the
credit facility leaving the Company with $70.5 million of availability.
FINANCIAL HIGHLIGHTS
----------------------------------------------------------------------------
Three months ended Nine months ended
September 30, September 30,
------------------------------------------------------
2013 2012 % change 2013 2012 % change
------------------------------------------------------
Financial (000's
except per share
amounts)
Petroleum and natural
gas sales 66,964 28,297 137 179,395 81,836 119
Funds flow from
operations (1) 26,698 15,826 69 76,292 44,379 72
Per share - basic 0.13 0.18 (28) 0.38 0.52 (27)
Per share - diluted 0.13 0.17 (24) 0.37 0.51 (27)
Net income (loss) (4,964) (405) (1,126) (14,389) 7,873 (283)
Per share - basic
and diluted(2) (0.02) (0.00) n/a (0.07) 0.09 (178)
Dividends declared 5,092 - n/a 28,455 - n/a
Per share 0.03 - n/a 0.14 - n/a
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended Nine months ended
September 30, September 30,
------------------------------------------------------
2013 2012 2013 2012 2013 2012
------------------------------------------------------
Development capital
expenditures 28,562 29,565 (3) 69,539 92,180 (25)
Acquisitions
(corporate and
property) - 1,129 n/a 290 17,888 (98)
Property dispositions (19,058) - n/a (32,297) (100) 32,197
Net debt(3) 281,161 94,903 196 281,161 94,903 196
Weighted average
shares outstanding(2)
Basic 203,147 89,635 127 203,131 85,656 137
Diluted 203,147 89,635 127 203,131 85,657 137
Shares outstanding,
end of period
Basic 203,147 89,635 127 203,147 89,635 127
Diluted 209,750 101,104 107 209,750 101,104 107
----------------------------------------------------------------------------
Operating
Average daily
production
Crude oil (bbls/d) 7,152 3,762 90 7,090 3,601 97
Natural gas (mcf/d) 1,230 714 72 1,466 703 109
Natural gas liquids
(bbls/d) 107 42 155 128 42 205
----------------------------------------------------------------------------
Total (boe/d) (4) 7,464 3,923 90 7,462 3,760 98
----------------------------------------------------------------------------
Average realized price
Crude oil and
natural gas liquids
($/bbl) 99.88 80.60 24 90.52 81.70 11
Natural gas ($/mcf) 2.32 1.39 67 2.58 1.50 72
----------------------------------------------------------------------------
Total ($/boe) (4) 97.52 78.40 24 88.06 79.43 11
----------------------------------------------------------------------------
Netback ($/boe)
Oil and gas sales 97.52 78.40 24 88.06 79.43 11
Royalties (15.87) (13.55) 17 (14.45) (12.64) 14
Operating expenses (17.08) (13.16) 30 (17.50) (13.38) 31
Transportation (1.86) (2.90) (36) (1.82) (2.92) (38)
----------------------------------------------------------------------------
Operating netback
prior to realized
derivative
contracts 62.71 48.79 29 54.29 50.49 8
Realized gain (loss)
on derivative
contracts (10.58) 3.24 (427) (4.59) 1.65 (378)
----------------------------------------------------------------------------
Operating netback(4) 52.13 52.03 - 49.70 52.14 (5)
----------------------------------------------------------------------------
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 and
nine months ended September 30, 2013 and the three months ended
September 30, 2012, the diluted number of shares is equal to the basic
number of shares. Therefore, diluted per share amounts of the net losses
are equivalent to basic per share amounts.
3. "Net debt" is defined as current assets less current liabilities,
excluding derivative contracts.
4. A conversion ratio of 1 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.
Please see the disclaimer at the end of this news release for additional
information on boes.
OPERATIONAL UPDATE
Southeast Saskatchewan
In southeast Saskatchewan, Renegade continues to show strong well performance on
the assets acquired in December, 2012. Seven of the nine gross wells have
production history in excess of 30 days, with an average 30 day initial
production ("IP") rate of 195 barrels ("bbls") per day ("bbls/d"). The average
drill, complete and equipping costs associated with the nine gross wells was
approximately $1.2 million to $1.4 million per well.
Renegade now has initial results on 9 gross (6.7 net) wells which were drilled
post break-up in southeast Saskatchewan, with a 100% success rate. Of these
wells, 6 gross (4.6 net) are located in the Queensdale/Cantal area targeting the
Frobisher/Alida formation, 2 gross (1.7 net) wells are in the Gainsborough area
targeting the Alida formation and 1 gross (0.5 net) well is in the Crystal Hills
area targeting the Souris Valley formation.
The table below outlines Renegade's post break-up drilling activities in
southeast Saskatchewan:
----------------------------------------------------------------------------
Average Average Average
Southeast IP 30 IP 60 IP 90
Saskatchewan Renegade Day Day Day
Post Break-Up Working Gross Gross Gross Days on
Area Well Number Interest (bbls/d) (bbls/d) (bbls/d) Production(1)
----------------------------------------------------------------------------
Crystal
Hills #1 50% 172 140 116 136
----------------------------------------------------------------------------
Queensdale #2 50% 237 199 170 123
----------------------------------------------------------------------------
Queensdale #3 80% 311 261 230 111
----------------------------------------------------------------------------
Queensdale #4 75% 245 205 185 99
----------------------------------------------------------------------------
Queensdale #5 65% 67 70 n/a 82
----------------------------------------------------------------------------
Queensdale #6 90% 241 233 n/a 72
----------------------------------------------------------------------------
Cantal #7 97% 95 n/a(2) n/a 56
----------------------------------------------------------------------------
Gainsborough #8 75% n/a(3) n/a n/a 23
----------------------------------------------------------------------------
Gainsborough #9 92% n/a(4) n/a n/a 8
----------------------------------------------------------------------------
Average 195 185 175
----------------------------------------------------------------------------
1. Total days on production as at November 10, 2013
2. Average 56 day IP of 78 bbls/d (gross)
3. Average 23 day IP of 120 bbls/d (gross)
4. Average 8 day IP of 84 bbls/d (gross)
In addition to the wells detailed above, Renegade has drilled, and is in the
process of bringing on production, 1 gross (1.0 net) triple leg horizontal well
in the Silverton area. The Company is currently drilling the second well in the
Silverton area with a planned on-stream date of mid-December. This well will
mark the end of the 2013 operated development drilling program.
Renegade will continue to have one rig operating in southeast Saskatchewan for
the remainder of the 2013 year with a drilling plan consisting of 4 gross (4.0
net) vertical test wells to assist in delineating pool boundaries and defining
new opportunities moving into 2014.
West Central Saskatchewan
In the Viking play in west central Saskatchewan, Renegade brought 14 gross (13.5
net) wells onto production in the third quarter of 2013. The Company has no
additional plans to drill in west central Saskatchewan for the remainder of the
2013 year. Results from the Company's Viking program are consistent with
management's expectations with 90 day IP rates averaging 42 bbls/d.
Current Production
Renegade's current production is approximately 7,600 boe/d (95% light oil),
based on field production estimates.
READER ADVISORIES
Forward-Looking Statements
Statements in this document may contain forward-looking statements or
information within the meaning of applicable securities laws, including
management's assessment of future plans and operations including capital
expenditures, drilling results, locations and plans, management's expectations
with respect to the quality of the Company's assets, areas of activity, the
Company's plans with respect to operations and the results thereof, expectations
with respect to production rates, including IP rates, operational plans, the
timing of bringing certain production on-stream and production guidance. The
reader is cautioned that assumptions used in the preparation of such information
may prove to be incorrect. Events or circumstances may cause actual results to
differ materially from those predicted, as a result of numerous known and
unknown risks, uncertainties, and other factors, many of which are beyond the
control of the Company. These risks include, but are not limited to: the risks
associated with the oil and gas industry; commodity prices and exchange rate
changes; operational risks inherent in exploration, development and production
activities; delays or changes in plans; risks associated to the uncertainty of
reserve estimates; health and safety risks; and the uncertainty of estimates and
projections of production, costs and expenses.
In addition, forward-looking statements or information are based on a number of
factors and assumptions which have been used to develop such statements and
information but which may prove to be incorrect. Although the Company believes
that the expectations reflected in such forward-looking statements or
information are reasonable, undue reliance should not be placed on
forward-looking statements because the Company can give no assurance that such
expectations will prove to be correct. In addition to other factors and
assumptions which may be identified herein, assumptions have been made
regarding, among other things: the impact of increasing competition; the general
stability of the economic and political environment in which the Company
operates; the timely receipt of any required regulatory approvals; the ability
of the Company to obtain qualified staff, equipment and services in a timely and
cost efficient manner; drilling results; the ability of the operator of the
projects which the Company has an interest in to operate the field in a safe,
efficient and effective manner; the ability of the Company to obtain financing
on acceptable terms; field production rates and decline rates; the ability to
replace and expand oil and natural gas reserves through acquisition, development
and exploration; the timing and costs of pipeline, storage and facility
construction and expansion and the ability of the Company to secure adequate
product transportation; future commodity prices; currency, exchange and interest
rates; the timing of operations; the regulatory framework regarding royalties,
taxes and environmental matters in the jurisdictions in which the Company
operates; and the ability of the Company to successfully market its oil and
natural gas products. Readers are cautioned that the foregoing lists of factors
and assumptions are not exhaustive. Additional information on these and other
factors that could affect the Company's operations and financial results are
included in the Company's filings with Canadian securities regulatory
authorities, including the Company's annual information form, and may be
accessed through the SEDAR website (www.sedar.com), at the Company's website
(www.renegadepetroleum.com.).
The forward-looking statements contained in this news release are made as at the
date of this news release and the Company does not undertake any obligation to
update publicly or to revise any of the included forward-looking statements,
whether as a result of new information, future events or otherwise, except as
may be required by applicable securities laws.
Certain Oil & Gas Matters
Any references in this news release to IP rates are useful in confirming the
presence of hydrocarbons, however, such rates are not determinative of the rates
at which such wells will continue production and decline thereafter are not
necessarily indicative of long term performance or ultimate recovery. While
encouraging, readers are cautioned not to place reliance on such rates in
calculating the aggregate production for Renegade. Such rates are based on field
estimates and may be based on limited data available at this time and are not
determinative of the rates at which such wells will continue production and
decline thereafter.
Conversion
The term "boe" may be misleading, particularly if used in isolation. A boe
conversion ratio of six thousand cubic feet of natural gas to one boe (6
mcf/bbl.) is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the
wellhead. All boe conversions in this report are derived from converting gas to
oil in the ratio of six thousand cubic feet of gas to one barrel of oil. Given
that the value ratio based on the current price of crude oil as compared to
natural gas is significantly different from the energy equivalency of 6:1,
utilizing a conversion on a 6:1 basis may be misleading as an indication of
value.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Renegade Petroleum Ltd.
Andrew Greenslade
Interim Chief Executive Officer
(403) 930-1102
Renegade Petroleum Ltd.
Mark Lobello
Interim Chief Financial Officer
(403) 355-8921
www.renegadepetroleum.com
Renegade Petroleum Ltd. (TSXV:RPL)
Historical Stock Chart
From Jul 2024 to Aug 2024
Renegade Petroleum Ltd. (TSXV:RPL)
Historical Stock Chart
From Aug 2023 to Aug 2024
