Silhouette of an oil pump jack.Denny Thurston/Getty Images/iStockphoto
Junior energy company Renegade Petroleum Ltd. says its board has launched a "strategic review" to identify what options it has going forward.
The move is to "examine and consider the alternatives available to the company, both near and long term, with a view to enhancing shareholder value," the company said in a news release Monday.
Kuno Ryckborst, analyst with Stonecap Securities, said the review could result in a sale of the company or an asset sale on a piecemeal basis.
Last October, growth story Renegade suddenly shifted its focus by becoming a high-dividend yield company.
The light oil producer's assets include fields in the Viking area in west-central Saskatchewan and production currently stands at about 7,800 barrels a day.
Net debt is about $296-million, the company said.
Mr. Ryckborst said two potential suitors for the Viking assets are Whitecap Resources Inc. and Tamarack Valley Energy Ltd.
Bertrand Marotte