Renegade Petroleum Ltd V.RPL

Positive based on Surge's 2P 2013 estimate

[deisman]

Ususally the truth lies somewher between what the involved companies choose to announce and which metrics they use.  I don't know why Surge is using a 2013 lower estimate/higher cost than Renegades 2012 figures but if true its a better deal for us.  Below is from Surge's announcement and Renegades figures provided.

Long life oil reserves

The acquisition adds proven and probable (P+P) reserves of 4.6 million boe (barrels of oil equivalent) as at Dec. 31, 2013 (96 per cent crude oil), assessed internally by Surge consistent with NI 51-101 guidelines. On this basis, Surge is paying $23.70 per barrel for P+P reserves.

Based on current production, the assets have a long reserve life index of more than 10 years (P+P).

Total Proved Reserves(3) 4,153 mboe

Total Proved Plus Probable Reserves ("2P")(3) 5,618 mboe  = $19.40 per barrel

3. Based on Renegade's December 31, 2012 reserve report. Does not include 2013 volumes produced, 2013 reserve changes or operational activities.

Any Thoughts?
 

[roscoe74]

RPL states the sale of " mature" assets while Surge describes them as "low decline, 10 year reserve life, accretive assets" with battery, pipeline and water flood infrastructure". These  may be former Penn West assets that need a lot of maintenance costs and do not fit well with the new, slimmer RPL that high debt load will mandate. Also, the deal requires attractive

[Seppelt]

I see this transaction as long term growth for SGY and short term necessity for RPL. So what's the daily production now? About 5,300-5,800 boed? Any numbers? In any case, my criteria for a small dividend paying company is at least 7,000 boed high in light oil, preferred is 10,000 boed or more. With this shrunk production base, few investors will be interested in a dividend paying dwarf with

[Seppelt]

Looking at current SGY and RPL share price, it's hard to see any market reaction to this transaction. It's probably early and, besides, nobody is interested in RPL until the meeting later this months. However, this is what popped up on my account today: * Renegade Petroleum : Raymond James cuts target to C$1.20 from C$1.40 * Renegade Petroleum : Paradigm Capital cuts to hold from buy