The Canadian Press - ONLINE EDITION

Energy juniors Renegade Petroleum, Alexander Energy to join forces

  • Print

CALGARY - Energy junior Alexander Energy Ltd. (TSXV:ALX) is taking over Renegade Petroleum Ltd. (TSXV:RPL) in a friendly, $495-million stock-based deal.

The combined company — to be named Spartan Energy Corp. — will be focused on developing light oil in Saskatchewan.

Spartan will be led by Alexander's current management team and board of directors.

Based on Alexander's five-day weighted average stock price, the deal is worth $1.55 per share — a 65 per cent premium over Renegade's trading price over that period.

The transaction follows a tumultuous period for Renegade. Last spring, it kicked off a formal process to weigh its strategic alternatives.

In the following months, some of its top brass parted ways with the company, including its CEO and board chairman in October. Last month, it fended off a challenge from dissident shareholder FrontFour Capital Group LLC.

In a release, Alexander says Spartan would have production of 6,150 barrels of oil equivalent per day, 93 per cent of which would be in valuable liquids.

"This transaction will establish a significant presence for Spartan in southeast Saskatchewan and will position the company for continued growth and success," said Alexander CEO Rick McHardy.

"This is the second high quality acquisition since the recapitalization of Alexander just two months ago, and a key strategic step in our growth towards becoming an oil-focused intermediate producer in the coming years."

Renegade's interim CEO, Andrew Greenslade, said Alexander's management team has a good track record.

"We are proud of the high quality assets that our team has put together and is contributing to the transaction. The combined company represents an exciting opportunity for Renegade shareholders to retain their exposure to the upside inherent in these assets, and participate in a larger, more liquid, light-oil focused entity with a substantial platform for growth."

Renegade shares closed up 30 per cent on the TSX Venture Exchange at $1.30, while Alexander's dropped more than eight per cent to 65 cents.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Family of Matias De Antonio speaks outside Law Courts

View more like this

Photo Store Gallery

  • Horses enjoy a beautiful September morning east of Neepawa, Manitoba  - Standup Photo– Sept 04, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • Challenges of Life- Goose Goslings jump over railway tracks to catch up to their parents at the Canadian Pacific Railway terminalon Keewatin St in Winnipeg Thursday morning. The young goslings seem to normally hatch in the truck yard a few weeks before others in town- Standup photo- ( Day 4 of Bryksa’s 30 day goose project) - Apr 30, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

What are you most looking forward to this Easter weekend?

View Results

View Related Story

Ads by Google