Renegade fights back
Renegade Petroleum has been priced at almost $3.00 a share about a year ago.Now it is hovering around $1.00 per share.Some of it's shareholders have formed a shareholder group and would like to replace some members of the board and of management.They believe that they intend to float a new secondary issue priced below net asset value.This may have stopped them for now.For the time being Renegade has increased it's credit facility by $70 million and still has some room here.They will probably also dispose of more non-core assets as they did last quarter.
Oil Wells
Renegade has a vey successful drilling program.It has 20 new wells in Southeast Saskatchewan and their initial production rates is about 200 barrels per day.Also they have another 15 wells in West Central Saskatchewan;their initial production rate is about 45 barrels per day.This will definitely increase production rates in 2014.Their production was 7460 barrels per day for the last quarter and is now up to 7600 barrels for November.It is easy to see that their production should be up to almost 12,000 barrels per day by the second or third quarter of 2014 with their drilling program.
Net Income
They still have a loss on their operations but should be close to break even in 2014.Funds flow increased by 20% to $27 million from $22 in the same quarter of last year.With the increased production in 2014 it might be expected that funds from operations will increase to between $37 to $40 million.
.With almost $70 million left on their credit facility and new production coming onstream they will not likely need a new equity issue in 2014.
New drilling
Renegade should be very careful in disposing of assets.The assets it has are very productive and their drilling success is unbeatable.Renegade may get back towards $3.00 per share if it can keep most of it's assets and continue with it's red-hot drilling program.
Oil Wells
Renegade has a vey successful drilling program.It has 20 new wells in Southeast Saskatchewan and their initial production rates is about 200 barrels per day.Also they have another 15 wells in West Central Saskatchewan;their initial production rate is about 45 barrels per day.This will definitely increase production rates in 2014.Their production was 7460 barrels per day for the last quarter and is now up to 7600 barrels for November.It is easy to see that their production should be up to almost 12,000 barrels per day by the second or third quarter of 2014 with their drilling program.
Net Income
They still have a loss on their operations but should be close to break even in 2014.Funds flow increased by 20% to $27 million from $22 in the same quarter of last year.With the increased production in 2014 it might be expected that funds from operations will increase to between $37 to $40 million.
New drilling
Renegade should be very careful in disposing of assets.The assets it has are very productive and their drilling success is unbeatable.Renegade may get back towards $3.00 per share if it can keep most of it's assets and continue with it's red-hot drilling program.
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