Marketwire Canada
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 www.renegadepetroleum.com or www.sedar.com.
FINANCIAL & OPERATING HIGHLIGHTS---------------------------------------------------------------------------- Three months ended Six months ended June June 30, 30, ---------------------------------------------- % % 2011 2010 change 2011 2010 change ----------------------------------------------Financial (000's except per share amounts)Petroleum and natural gas sales 14,588 6,126 138 27,224 10,057 171Funds 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 73Net 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----------------------------------------------------------------------------OperatingAverage 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.
ACCOMPLISHMENTS
-- 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.