Renegade To Expand Alberta Slave Point Holdings By 12,000 Acres

To buy 12,000 net acres in Senex area of N AB targeting Slave Point & Keg River formations, gaining 50 BO/d.

Renegade Petroleum Ltd., Calgary, (Toronto Venture: RPL) plans to acquire certain assets in the Senex area of northern Alberta from an undisclosed public company for C$11 million in cash.

The deal values the land at C$917 per acre, according to Renegade.

The purchase includes 12,000 net acres which includes existing infrastructure including processing facilities, water disposal and storage capacity and access to all-season roads. The land is contiguous to the company's recently purchase in the Senex area and will expand the company's land position in the Slave Point play by 19 net sections.

Production is 50 barrels of oil per day from the Slave Point and Keg River formations. Upside includes an additional 75 net potential drilling locations targeting the Slave Point light oil resource play.

Upside includes up to an additional 75 net potential drilling locations targeting the Slave Point light oil resource play.

Pro forma, Renegade will own more than 35 net sections (more than 22,000 net acres) of contiguous land in the Senex area and will control the majority of the Slave Point reef complex in the Senex area. The acquisition also brings the company's total prospective land to 51 net sections (more than 32,000 net acres) in the Slave Point area.

The company should be in a position to commence horizontal drilling operations in the Senex area late in the third quarter or early in the fourth quarter of 2012 and has accelerated its development plan on the play by up to 12 months.

Renegade will fund the acquisition with proceeds from an offering of C$40 million in two equity deals.

GMP Securities LP is financial advisor to Renegade and FirstEnergy Capital Corp. and Paradigm Capital Inc. are strategic advisors.

The deal is expected to close by March 30.