CALGARY—Renegade Petroleum Ltd.,says it has an agreement to pay $11 million cash to make a strategic land acquisition alongside other land recently acquired by the Calgary-based company.
With the 12,000-acre acquisition (4,850 hectares) in the Senex area of Alberta, Renegade will control the majority of the Slave Point reef complex in the area.
Including previous acquisitions, Renegade will own 22,000 acres of contiguous land in the area.
The Calgary-based company will also acquire related infrastructure, including processing facilities, water disposal and storage capacity and access to all-season roads.
In a related development, Renegade has arranged to sell at least $40 million worth of its shares to a syndicate of underwriters. They have agreed to pay $4 per share for 10 million shares and have an option to buy up to 1.125 million additional shares within 30 days of the closing.
The money, plus $50 million from a previously announced flow-through share placement, will be used to repay money drawn on Renegade’s credit facility.
The company says that will free up its borrowing capacity to continue acquisitions in the Slave Point play in northern Alberta as well as in southeast Saskatchewan.