lots of value in energy players?  cheers, dave.


Raging River Exploration Inc. Announces Dodsland Viking Property Acquisition, $35 Million Bought Deal Financing and Increased Guidance

CALGARY, ALBERTA--(Marketwire - April 19, 2012) -


Raging River Exploration Inc. ("Raging River" or the "Company") (TSX VENTURE:RRX.V - News) is pleased to announce that it has entered into an agreement to acquire focused Viking light oil assets (the "Property Acquisition") in the Dodsland area of southwest Saskatchewan from an energy producer (the "Vendor"). The Property Acquisition will add production, reserves and undeveloped land in its core Dodsland resource oil play.


Through the Property Acquisition, Raging River is acquiring 175 bbls/d of high netback Viking light oil production and 21.5 net sections of undeveloped land. The total consideration is approximately $30.5 million (subject to customary closing adjustments and regulatory approvals including that of the TSX Venture Exchange with respect to the Property Acquisition and the issuance of the Property Acquisition Special Warrants (as defined below) and the Common Shares (as defined below) issuable upon exercise thereof)) consisting of $25 million of cash and the issuance of 2.75 million special warrants ("Property Acquisition Special Warrants") of Raging River. Each Property Acquisition Special Warrant entitles the Vendor to receive one common share of Raging River ("Common Share") on the earlier of (i) the date that is four months and a day after the closing time of the Property Acquisition, and (ii) the date Raging River obtains a receipt for a final prospectus in Alberta qualifying the distribution of the Common Shares issuable on exercise or deemed exercise of the Property Acquisition Special Warrants. Raging River shall use its commercially reasonable best efforts to obtain such receipt as soon as practicable. The Company will utilize existing credit facilities to fund the cash portion of the Property Acquisition. With the Property Acquisition, Raging River maintains its current oil weighting at greater than 98%.

The Property Acquisition has the following characteristics:

Viking Light Oil Production:           175 bbls/d (100% 36 degrees API oil) Proved plus Probable Reserves(1):      1.07 MMboe (100% Viking light oil)    Undeveloped Land:                      13,400 net acres                      Total Development Drilling Locations:  220 gross, 110 net (70% unbooked)     Current Operating Netback(2):          $65.00/bbl                           

1.  Gross Company Reserves. Reserves are prepared by Sproule Associates     Limited effective January 31, 2012 in accordance with National     Instrument 51-101 and the COGEH Handbook. Gross Company Reserves means     the company's working interest reserves before the calculation of     royalties, and before the consideration of the company's royalty     interests.  2.  Based on Edmonton Light pricing of Cdn $90/bbl and calculated by     subtracting royalties and operating costs from revenues. 


Closing of the Property Acquisition is expected to occur on or about May 4, 2012.


Net of the internally estimated land value of $5.4 million the Property Acquisition metrics are as follows:

Production:                              $143,400 per producing boe          Proved plus Probable Reserves(1):        $23.39 per bbl                      Proved plus Probable Recycle Ratio(2):   2.8 times                          

1.  Reserves as disclosed above.  2.  Utilizing netback shown above. 


Peters & Co. Limited acted as Raging River's sole financial advisor with respect to the Property Acquisition.


Raging River has entered into an agreement, on a bought deal basis, with a syndicate of underwriters, led by Peters & Co Limited and including, FirstEnergy Capital Corp., Desjardins Securities Inc., Dundee Securities Corp., Paradigm Capital Inc., Cormark Securities Inc., National Bank Financial Inc., CIBC World Markets Inc., GMP Securities L.P., and Scotia Capital Inc. (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase for resale on a private placement basis, 17,500,000 special warrants of Raging River ("Placement Special Warrants") at price of $2.00 per Placement Special Warrant for gross proceeds of $35 million (the "Financing").

Each Placement Special Warrant will entitle the holder thereof to receive one Common Share on the earlier of the date that is: (a) four months and a day following the closing of the Financing, and (b) the day on which a receipt is issued for a final prospectus by the securities regulatory authorities in each of the provinces where the Special Warrants are sold qualifying the distribution of the Common Shares issuable upon the exercise of the Placement Special Warrants; provided that if a receipt is not issued on or before June 29, 2012, each Placement Special Warrant will entitle the holder thereof to 1.1 Common Shares. Raging River shall use its commercially reasonable best efforts to obtain such receipt as soon as practicable. Until the receipt is issued for such prospectus, the Placement Special Warrants will be subject to a hold period under applicable Canadian securities laws equal to four months and a day following closing of the Financing.

The net proceeds from the Financing will be used to reduce outstanding indebtedness under the Company's current credit facility, a portion of which was used to fund the Property Acquisition.

Closing of the Financing is expected on or about May 8, 2012, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange to the listing of the Common Shares underlying the Placement Special Warrants. The securities to be issued under this offering will be offered by way of private placement exemptions in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and such other provinces as the Underwriters may specify and the Company agrees (excluding Quebec), and in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended.


The Property Acquisition allows Raging River to continue its consolidation of the Viking oil resource play in the Dodsland Area with the addition of 175 bbls/d of light oil production, 13,400 undeveloped net acres and 110 net horizontal development drilling locations.

The lands acquired are immediately adjacent to Raging River's lands in Dodsland and increases its development drilling inventory to in excess of 470 locations. The Property Acquisition also contains a 16 horizontal well/section pilot that has been on production for approximately four months. Continued positive performance data on this pilot could lead to drilling of the entire area at 16 horizontal wells per section. This could double the net inventory on the Property Acquisition to 220 net locations.


Inclusive of the Property Acquisition the Board of Directors of Raging River has approved an increase in the 2012 capital budget for the remaining three quarters of 2012 to $80 million from $45 million. The revised budget contemplates $30 million of acquisition expenditures, $43 million of expenditures to drill and bring on stream an additional 45 net horizontal oil wells in the Dodsland area. The remaining $7 million of expenditures are allocated towards land, seismic and facilities.

Average daily production for the period of April through December 2012 is expected to now be 1,700 boepd (97% crude oil) and Raging River expects to exit 2012 at approximately 2,200 boepd (97% oil).


Proforma Current Production:                  1,650 boepd (98% oil)          Proved plus Probable Reserves (1):            6.5 MMboe (99% oil)            Dodsland Land:                                                                                         Total               84,000 net acres                                         Undeveloped         73,000 net acres               Development drilling inventory at 8 wells per section:                                                 Total               470 net wells                                            Unbooked            375 net wells                    1.  Gross Company Reserves. Reserves evaluated by Sproule Associates Ltd.     ("Sproule") as at December 31, 2011 for Raging River Dodsland, January     31, 2012 for Raging River Lucky Hills and January 31, 2012 for the     Property Acquisition. Gross Company Reserves means the Company's working     interest reserves before the calculation of royalties, and before the     consideration of the Company's royalty interests. 


Spring breakup is rapidly coming to a close in the Dodsland area with road bans being recently removed. In anticipation of a mild spring breakup, Raging River has been actively preparing leases for the next phase of our drilling program which is anticipated to start prior to May 1, 2012. With the early start for activities, Raging River expects to drill up to 17 gross (13.7 net) horizontal oil wells in the second quarter.

Raging River has an extensive light oil drilling inventory in excess of 470 net locations, 100% of which fall within our one core area of Dodsland in southwest Saskatchewan. This inventory represents 7 years of defined low risk development drilling that can be financed within cashflow and credit facilities. The enviable drilling inventory, in conjunction with the long term waterflood potential of our existing asset base, has set the stage for years of continued growth.