Yangarra Announces First Quarter 2013 Financial and Operating Results

CALGARY, May 21, 2013 /CNW/ – Yangarra Resources Ltd. (“Yangarra” or the “Company“) (TSXV:YGR.V) announces its financial and operating results for the three months endedMarch 31, 2013.

Highlights of the quarter ended March 31, 2013 are as follows:

• Production was 1,809 boe/d (47% oil and NGL’s) with production negatively impacted by 200 boe/d shut-in due to the drilling of new wells on existing pad sites.
• Oil and gas sales including royalty income was $7.7 million with funds flow from operations of$4.8 million ($0.04 per share – basic).
• Operating costs for the first quarter, including $0.96/boe of transportation costs, were$9.00/boe
• The Q1 2013 netback of $34.34 per boe is a 16% increase from the $29.66 per boe reported in the first quarter or 2012.  Realized prices were $42.68/boe up 28% from $33.30/boe in the first quarter of 2012 (realized natural gas prices increased by 63%).
• Capital expenditures of $11 million focused on drilling and infrastructure  in Central Alberta
• As at March 31, 2013, the Company had a bank debt and working capital deficit of $42 millioncompared to $34 million at December 31, 2012.
• Yangarra constructed a gas processing facility (100% working interest) in the quarter with the facility online April 10, 2013 which brought on eight previously standing wells.

Financial Summary

Operations Summary

Net petroleum and natural gas production, pricing and revenue are summarized below:

Operating Netbacks (boe/d)

The Company’s operating, cash flow and net income netbacks are summarized below:

Working Capital Summary

The following table summarizes the change in working capital during the three months ended March 31, 2013 and year ended December 31, 2012:

Capital Spending

Capital spending is summarized as follows:

Disclosure Items

The Company’s financial statements, notes to the financial statements and management’s discussion and analysis have been filed on SEDAR (www.sedar.com) and are available on the Company’s website (www.yangarra.ca).

Natural gas has been converted to a barrel of oil equivalent (Boe) using 6,000 cubic feet (6 Mcf) of natural gas equal to one barrel of oil (6:1), unless otherwise stated.  The Boe conversion ratio of 6 Mcf to 1 Bbl is based on an energy equivalency conversion method and does not represent a value equivalency; therefore Boe’s may be misleading if used in isolation. References to natural gas liquids (“NGLs”) in this news release include condensate, propane, butane and ethane and one barrel of NGLs is considered to be equivalent to one barrel of crude oil equivalent (Boe).  One (“BCF”) equals one billion cubic feet of natural gas.  One (“Mmcf”) equals one million cubic feet of natural gas.  Operating netbacks are calculated as revenue from all products less operating costs.

Forward looking information

Certain information regarding Yangarra set forth in this news release, including 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.  As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

See Management’s Discussion and Analysis for the three and nine months ended September 30, 2012 for a special note regarding Non-IRFS measures.

All reference to $ (funds) are in Canadian dollars.

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

SOURCE: Yangarra Resources Ltd.