CALGARY,
AB, Dec. 11, 2024 /CNW/ - Yangarra
Resources Ltd. ("Yangarra" or the
"Company") (TSX: YGR) announces its 2025 capital budget
& guidance, a land acquisition and an operations update.
2025 Capital Budget & Guidance
The Company's Board of Directors has approved a capital budget
of $55 - $60
million for 2025, which will hold production flat at 11,250
– 11,750 boe/d.
At USD $68.00/bbl for WTI oil and
CDN$2.00/GJ for AECO natural gas this
budget will generate $85 -
$90 million of cash flow
($30 million of free cash flow).
Land Acquisition
Yangarra completed a highly complementary farm-in on 11
contiguous sections in the Chambers area. The new lands are
adjacent to existing lands and infrastructure and have multi-zone
potential locations including Cardium and Belly River rights. The
farm-in will add up to 50 tier-one locations to the Company's
inventory. The Company is required to drill two wells in 2025 to
earn the farm-in lands.
Operations Update
All shut-in production related to 3rd party turnarounds was back
online in early October and the Company brought on eight new wells
during the fourth quarter. Yangarra will exit the year with two
drilled uncompleted wells ("DUCs"), to be completed in January.
Bank Review
The Company has completed its semi-annual banking review and the
syndicated senior credit facility has been re-determined at
$130 million. The next borrowing base
review is scheduled for May 31,
2025.
All reference to $ (funds) are in Canadian dollars unless
otherwise noted.
Forward Looking Information.
Certain information regarding Yangarra set forth in this news
release, management's assessment of future plans, operations and
operational results may constitute forward-looking statements under
applicable securities law and necessarily involve risks associated
with oil and gas exploration, production, marketing and
transportation such as loss of market, volatility of prices,
currency fluctuations, imprecision of reserves estimates,
environmental risks, competition from other producers and ability
to access sufficient capital from internal and external sources. In
particular, this release contains forward-looking information
relating to expectations about its abilities to generate free cash
flow. Accordingly, actual results may differ materially from those
anticipated in the forward-looking statements. Certain of these
risks are set out in more detail in Yangarra's current Annual
Information Form, which is available on Yangarra's SEDAR+ profile
at www.sedarplus.ca.
Forward-looking statements are based on estimates and
opinions of management of Yangarra at the time the statements are
presented. Yangarra may, as considered necessary in the
circumstances, update or revise such forward-looking statements,
whether as a result of new information, future events or otherwise.
Yangarra undertakes no obligation to update or revise any
forward-looking statements, except as required by applicable
securities laws.
Neither the TSX nor its Regulation Service Provider (as that
term is defined in the Policies of the TSX) accepts responsibility
for the adequacy and accuracy of this release.
SOURCE Yangarra Resources Ltd.