Renegade Petroleum Ltd. (TSXV: RPL) entered into an agreement to sell certain oil and gas assets in southeast Saskatchewan to an undisclosed buyer for $109 million, the Calgary-based company announced Jan. 13.
The assets currently produce an estimated 1,450 barrels of oil equivalent per day (BOE/d) with 95% oil and natural gas liquids (NGL). This includes about 200 BOE/d of flush production from wells recently brought on production. The forecasted annualized 2014 production rate on the assets is 1,225 BOE/d with 95% oil and NGLs.
The proceeds will be used to repay debt. The sale is part of the company's ongoing strategic review process to increase its financial flexibility. Since the commencement of the strategic review, Renegade has reduced its debt through the sale of assets for $160.5 million.
Macquarie Capital Markets Canada Ltd. and TD Securities Inc. were joint financial advisors to Renegade. The disposition is expected to close in early March.
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