2012 was one of Renegade's most active and successful years to date. The Company was successful in achieving some of its highest initial production rates on individual wells in the Company's history from its organic drilling program in southeast Saskatchewan. In addition, the Company was successful in transforming itself into a sustainable dividend paying corporation through its acquisition of approximately 3,600 boe/d of low decline assets in its core operating area in southeast Saskatchewan.
Renegade has assembled a solid portfolio of high-quality assets in southeast Saskatchewan and in the Viking play in west central Saskatchewan and is the highest light oil weighted income plus growth company in the Canadian marketplace. The Company is focused on executing a capital program in areas that provide predictable results and strong capital efficiencies throughout its asset base.
The Company has added significant depth to its management team through the hire of Brad Wakefield as Vice President Exploitation, a 20 year veteran from a senior Canadian producer. In addition, the team has strengthened its engineering, geological and geophysical technical teams throughout the first quarter by hiring a number of 20 year plus light oil specialists. The team Renegade has assembled strengthens the technical and operational execution of its business strategy.
As at March 21, 2013, Renegade's current production is 8,000 boe/d based on field receipts. Of the 22.0 net Viking wells that were drilled in the first quarter, 18.0 net wells have been brought on production, and the 4.0 remaining net wells are in the process of being brought onto production. Renegade anticipates having all of the Viking wells on production by March 31, 2013.
The Company is preparing for an extended break up season by strategically placing service rigs throughout the field to ensure repair and maintenance delays are minimized. In addition, the facilities and infrastructure associated with the Acquired Assets are tied into sales pipelines that will mitigate production down time. In addition, through its two core areas in southeast Saskatchewan and the Viking, Renegade has the flexibility to adjust its drilling program coming out of break-up.
Renegade continues to implement its disciplined WTI hedging strategy to provide increased certainty over cash flow and dividends. As at March 21, 2013, the Company had hedged approximately 71 percent and 59 percent of its expected oil production, net of royalty interest, for the balance of 2013 and 2014, respectively. Average WTI hedge prices are currently C$93.94 per bbl for the remainder of 2013 and C$92.46 per bbl in 2014.
Renegade's common shares trade on the TSX Venture Exchange under the symbol RPL. Renegade currently has approximately 203.1 million shares outstanding and 211.8 million fully-diluted shares.
Statements in this document may contain forward-looking information including management's assessment of future plans and operations including drilling locations and plans, reserve estimates and the total future capital associated with development of reserves, matters related to the Renegade Report, capital expenditures, matters related to dividends and matters related to hedging. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. These risks include, but are not limited to: the risks associated with the oil and gas industry; commodity prices, and; exchange rate changes. Industry related risks could include, but are not limited to: operational risks in exploration; proposed dispositions not being completed or if completed, not providing the benefits expected; development and production; delays or changes in plans; risks associated to the uncertainty of reserve estimates; health and safety risks, and; the uncertainty of estimates and projections of production, costs and expenses. The recovery and reserve estimates of Renegade's reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. In addition, forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect.
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