During the first quarter of 2013, Renegade has continued its transition to a sustainable dividend paying corporation. Management remains focused on allocating the Company's capital program to areas that provide predictable results and strong capital efficiencies which continue to drive free cash flow and the sustainability of the income plus growth model. As such, the drilling program has been concentrated on Renegade's core assets in southeast Saskatchewan and its Viking assets in west central Saskatchewan.
On December 14, 2012, Renegade acquired approximately 3,600 boe/d from a senior producer in Canada. The Acquired Assets have performed as expected, with highly predictable cash flows and operating results. Production has been held at approximately 3,600 boe/d with minimal sustaining capital. During the first quarter, Renegade executed an effective capital maintenance program through work-overs and optimizations that translated into capital efficiencies of less than $15,000 per boe/d. Renegade will continue its capital maintenance program on the Acquired Assets throughout the balance of the 2013 year in order to effectively manage the Company's capital efficiencies and offset corporate declines.
In addition, Renegade has increasing confidence in the large inventory of potential drilling locations on the Acquired Assets. Of the previously announced 200 locations, the Company has completed full technical evaluations on over 75 locations and is well positioned to commence its drilling program coming out of break-up with a stable inventory of low risk locations.
West Central Saskatchewan - Viking Assets
Renegade continues to be an industry leading producer in the west central Saskatchewan Viking play with cumulative recovery results that exceed our independent reserve evaluator type curves. Renegade has drilled 22 gross (22.0 net) Viking wells in the first quarter of 2013 through a combination of 80 acre and 40 acre spacing with a 100% success rate.
The team has continued to improve and adjust its completion techniques in the Viking play during the first quarter and has delivered production rates which exceed the play and area averages. The 30-day IP rates in the Viking for the first quarter have increased by more than 22% from 2012 to an average IP rate of approximately 60 bbl/d on the first 12 gross (12.0 net) wells. Renegade continues to experience all-in costs of approximately $950 thousand per well.
During the fourth quarter of 2012, Renegade drilled a successful well in the Crystal Hills area targeting the Souris Valley, which continues to outperform with 90-day average IP rates of 240 bbl/d. Additionally in the Wordsworth area a well was drilled targeting the Frobisher formation and had a 60-day average IP rate of 140 bbl/d.
During the first quarter, Renegade drilled and completed 2 operated gross wells (1.0 net well) in southeast Saskatchewan. The Company drilled 1 gross (0.5 net) well in Crystal Hills targeting the Souris Valley that produced at a 30-day average IP rate in excess of 125 bbl/d which continues to be optimized. The recently drilled well in Wordsworth is currently in the process of being completed with plans to have the well producing prior to break-up.
Balance Sheet Management & Subsequent Events
Renegade management is committed to maintaining a prudent capital structure and reducing its overall indebtedness and focusing efforts on assets which help sustain a dividend paying model. Renegade will continuously review its asset base with the intention of pursuing accretive dispositions in non-core areas, complemented by strategic acquisitions within its core focus areas.
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