Renegade Petroleum Ltd. Announces a $58 Million Capital Budget Targeting $77 Million in Funds from Operations

Renegade Petroleum Ltd. ("Renegade" or the "Company") (TSX VENTURE:RPL)
announced today that its Board of Directors has approved a $57.7 million capital
budget for 2014 directed at exploitation of its high quality light-oil assets in
southeast and west central Saskatchewan. This capital program is consistent with
the Company's long-term objectives of drilling low-risk, high impact wells while
maintaining a strong focus on cost reduction in all areas and safe-guarding the
dividend. 


2014 CAPITAL BUDGET STRATEGIC OBJECTIVES



Profitability        - 97% light-oil with top tier operating netbacks       
Sustainability       - 25% corporate declines                               
                     - Strong capital efficiencies in core areas            
Cost Reduction       - Renewed focus on reduction of G&A and operating costs
Sustainable Dividend - 27% dividend payout ratio                            
                     - 102% all-in payout ratio                             
Long-Term Growth     - 260+ net light-oil development drilling locations    



2014 GUIDANCE 

The 2014 capital program is designed to position Renegade for long-term
sustainable production, reserve replacement and funds flow from operations with
a focus on sustainable dividend payments.  


The $57.7 million capital program and the expected dividend payment of $20.6
million are forecasted to be substantially funded through the Company's funds
flow from operations with an all-in annual payout ratio estimated at 102%. 


Management is pleased to provide the following estimated 2014 guidance:(1)(2)



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Average Production (boe/d)                                     5,700 - 5,900
Percentage Light-Oil and NGL Weighting (%)                                97
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Funds Flow From Operations ($000)                                       76.6
Funds Flow From Operations Per Diluted Share ($)(3)                     0.36
Exit Net Debt ($000)                                                   150.8
Bank Line ($000)(2)                                                    250.0
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Total Capital Expenditures ($000)                                       57.7
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Annual Cash Dividends ($000)                                            20.6
Annual Cash Dividends Per Basic Share ($)                               0.10
Total All-In Payout Ratio (%)                                            102
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 (1) Based on a WTI USD$95/bbl, CAD/USD exchange rate of 0.94, Edmonton Par 
     price of C$92/bbl and an AECO gas price of C$2.00 with 4,000 bbl/d of  
     2014 production hedged at an average price of C$92.46                  
(2)  Pending the successful closing of the previously announced $109 million
     asset disposition                                                      
(3)  Based on 209.9 million fully diluted shares currently outstanding      



The Company maintains a disciplined hedging program in order to provide
certainty over the funds flow from operations used to fund the capital program
and protect the long-term viability of its dividend payments. Renegade has 4,000
bbl/d of 2014 production hedged at WTI C$92.46 per barrel. 


2014 Capital Forecast 

In southeast Saskatchewan, Renegade plans to drill 18 gross (16.0 net) wells
across the Company's recently high-graded land position which represents
approximately 54% of the Company's 2014 development budget. In the west central
Saskatchewan Viking play, Renegade plans to drill 21 gross (20.0 net) wells
which represent approximately 46% of the Company's 2014 development budget. 


The breakdown of the 2014 capital expenditures program is set forth below:



                                                   2014
                                             ----------
Development Capital ($000)                       43,106
Maintenance Capital ($000)                       10,133
Land and Seismic ($000)                           3,000
Corporate ($000)                                  1,444
-------------------------------------------------------
Total Capital Expenditures ($000)                57,680



OPERATIONS UPDATE

Based on field estimates, Renegade's annualized 2013 production average was
7,450 boe/d which is within the Company's previously disclosed guidance of 7,400
to 7,700 boe/d. During the fourth quarter of 2013, the key operational focus was
managing the capital program in areas that provided strong capital efficiencies,
defined additional low risk drilling inventory and completed the company's flow
through commitment.  


Renegade drilled a total of 5 gross (3.5 net) development wells in the fourth
quarter of 2013, bringing the 2014 development total to 53 gross (46.8 net)
wells of which 17 gross (11.3 net) were in drilled in southeast Saskatchewan and
36 gross (35.5 net) were drilled in west central Saskatchewan. 


Strategically, as part of the companies flow through obligations, Renegade
completed the acquisition of over 190 sq kms of 3D seismic and an additional 4
gross (4.0 net) vertical test wells were drilled on the asset base during the
fourth quarter of 2013. The vertical delineation wells and the acquisition of
seismic data will be used to further de-risk the existing land base and provide
support for future drilling inventory with a focus on the Frobisher and Alida
trends in southeast Saskatchewan. 


To date in 2014, the Company has been actively drilling in both fields with 2
gross (1.6 net) wells drilled in southeast Saskatchewan and 9 gross (9.0 net) in
the Viking, all of which are in various stages of completion and being brought
on production. For the remainder of the quarter, Renegade will be active with
one drilling rig in southeast Saskatchewan. 


CORPORATE INFORMATION 

Renegade is a light oil focused development and production company with assets
located in Saskatchewan, Alberta, Manitoba and North Dakota. Renegade's common
shares trade on the TSX Venture Exchange under the symbol RPL.


Renegade is also pleased to announce that it has updated its corporate
presentation which is available at www.renegadepetroleum.com. 


READER ADVISORIES

Forward-Looking Statements

This press release contains forward-looking statements. More particularly, this
press release contains statements concerning, but not limited to, Renegade's
long-term objectives, Renegade's plans to continue to create value for
shareholders by investing in low-risk, high rate of return projects, Renegade's
capital expenditure program, Renegade's capital budget strategic objectives
(including projected commodity mix, corporate declines, capital efficiencies,
focus on reduction of G&A and operating costs, dividend payout ratio, all-in
payout ratio and number of development drilling locations), Renegade's drilling
plans, the expected ability of Renegade to execute on its exploration and
development program, anticipated dividend payments, expected sources of funding
for capital program and dividend payments, potential drilling locations and
drilling plans, expected well economics, commodity pricing and Renegade's
anticipated production (both in terms of quantity and raw attributes), funds
flow from operations, operating net backs, pay-out ratio net debt, dividends and
capital expenditures for 2014, anticipated use of vertical delineation wells and
the acquisition of seismic date on Renegade's land base and drilling inventory
and other similar matters. 


The forward-looking statements contained in this document are based on certain
key expectations and assumptions made by Renegade, including: (i) with respect
to capital expenditures, generally, and at particular locations, the
availability of adequate and secure sources of funding for Renegade's proposed
capital expenditure program and the availability of appropriate opportunities to
deploy capital; (ii) with respect to drilling plans, the availability of
drilling rigs, expectations and assumptions concerning the success of future
drilling and development activities and prevailing commodity prices; (iii) with
respect to Renegade's ability to execute on its exploration and development
program, the performance of Renegade's personnel, the availability of capital
and prevailing commodity prices; (iv) with respect to anticipated production,
the ability to drill and operate wells on an economic basis, the performance of
new and existing wells and risks typically associated with oil and gas
exploration and production and that the Company's production volumes and
assumptions related thereto are accurate in all material respects; (v) oil
prices; (vi) currency exchange rates; (vii) royalty rates; (viii) operating
costs; and (ix) transportation costs. 


Although Renegade believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance should not
be placed on the forward-looking statements because Renegade can give no
assurance that they will prove to be correct. Since forward-looking statements
address future events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These include, but
are not limited to, the failure to obtain necessary regulatory approvals, risks
associated with the oil and gas industry in general (e.g., operational risks in
development, exploration and production; delays or changes in plans with respect
to exploration or development projects or capital expenditures; the uncertainty
of reserve estimates; the uncertainty of estimates and projections relating to
production, costs and expenses; health, safety and environmental risks;
commodity price and exchange rate fluctuations; and uncertainties resulting from
potential delays or changes in plans with respect to exploration or development
projects or capital expenditures), changes in general economic, market and
business conditions; actions by governmental or regulatory authorities including
increasing taxes and changes in investment or other regulations; Renegade's
success at acquisition, exploitation and development of reserves; unexpected
drilling results; individual well productivity; the lack of availability of
qualified personnel or management; competition for, among other things, capital,
acquisitions of reserves, undeveloped lands and skilled personnel; incorrect
assessments of the value of acquisitions; and ability to access sufficient
capital from internal and external sources. 


Management has included the above summary of assumptions and risks related to
forward-looking information provided in this press release in order to provide
shareholders with a more complete perspective on Renegade's future operations
and such information may not be appropriate for other purposes. Readers are
cautioned that the foregoing lists of factors are not exhaustive. The
forward-looking statements contained in this document are made as of the date
hereof and Renegade is not under any obligation to update publicly or revise any
forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws. Please refer to Renegade's Annual Information Form dated April
29, 2013 for additional risk factors relating to Renegade, which is available
for viewing on www.sedar.com. 


This news release shall not constitute an offer to sell or the solicitation of
an offer to buy any securities nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful. The
securities issued pursuant to the plan of arrangement and financing described
herein have not been and will not be registered under the United States
Securities Act of 1933 and may not be offered or sold in the United States
except in transactions exempt from such registration.


Dividends

The payment and the amount of dividends declared in any month will be subject to
the discretion of the board of directors and will depend on the board of
director's assessment of Renegade's outlook for growth, capital expenditure
requirements, funds from operations, potential acquisition opportunities, debt
position and other conditions that the board of directors may consider relevant
at such future time. The amount of future cash dividends, if any, may also vary
depending on a variety of factors, including fluctuations in commodity prices
and differentials, production levels, capital expenditure requirements, debt
service requirements, operating costs, royalty burdens and foreign exchange
rates.


Conversion

The term "boe" may be misleading, particularly if used in isolation. A boe
conversion ratio of six thousand cubic feet of natural gas to one boe (6
mcf/bbl) is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the
wellhead. All boe conversions in this report are derived from converting gas to
oil in the ratio of six thousand cubic feet of gas to one barrel of oil. Given
that the value ratio based on the current price of crude oil as compared to
natural gas is significantly different from the energy equivalency of 6:1,
utilizing a conversion on a 6:1 basis may be misleading as an indication of
value.


Non-IFRS Measures

The Company discloses several financial measures that do not have any
standardized meaning prescribed under International Financial Reporting
Standards ("IFRS"). These financial measures include funds from operations and
funds flow from operations per diluted share. Management believes that these
financial measures are useful supplemental information to analyze operating
performance and provide an indication of the results generated by the Company's
principal business activities. Investors should be cautioned that these measures
should not be construed as an alternative to net income, cash provided by
operating activities or other measures of financial performance as determined in
accordance with IFRS. The Company's method of calculating these measures may
differ from other companies, and accordingly, they may not be comparable to
similar measures used by other companies. Please see the Company's most recent
Management's Discussion and Analysis, which is available at www.sedar.com for
additional information about these financial measures.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Renegade Petroleum Ltd.
Andrew Greenslade
Interim Chief Financial Officer
[phone]


Renegade Petroleum Ltd.
Mark Lobello
Interim Chief Financial Officer
[phone]
www.renegadepetroleum.com