Renegade Petroleum Sells Non-Core Assets For $32.5 Million

Bought non-core assets in SE Saskatchewan with 350 bbl/d of oil and NGLs production.

Renegade Petroleum Ltd. (TSXV: RPL) announced Dec. 12 that it has entered into an agreement to sell certain non-core assets in southeast Saskatchewan for $32.5 million.

The sale, effective Dec. 1, is part of the Calgary-based company's ongoing strategic review process and will enable Renegade to continue to high grade its current asset base by disposing of mature fields with higher operating costs and limited future drilling opportunities at attractive sale metrics. Further, the sale increases corporate netbacks and provides increased operational flexibility with an increased focus on Renegade's core assets.

The sold assets represent 350 barrels per day (bbl/d) of oil and natural gas liquids production. The company allocated minimal capital to the disposition assets for 2014, resulting in a minor impact to its southeast Saskatchewan development plans going forward. The proceeds from the disposition will be used to repay a portion of indebtedness drawn under Renegade's credit facility, which will increase financial flexibility and reduce future interest costs.