The syndicated senior credit facility has been confirmed at $210 million. All other terms remain the same.
The Company’s banking syndicate is led by Alberta Treasury Branches and includes the Canadian Imperial Bank of Commerce and National Bank of Canada.
As a result of improving macro conditions, Yangarra’s Board of Directors has approved a capital program of $60 million for 2021. The Company’s 2020 cost-cutting program has generated significant structural and sustainable per well savings on drilling and completions. Yangarra’s most recent drilling and completions costs have averaged $3.25 million per two-mile well, down 24% from an average of $4.25 million over the last two years. As a result, the Company expects to drill & complete 17 wells for 2021.
With improved capital efficiencies, the Company requires $40 million of capital to hold production flat at 10,000 boe/d. The Company expects to fund the growth wedge of $20 million in capital spending through cash flow with the remaining free cash flow to be used toward debt repayment. Yangarra’s long-term goal of reaching an absolute debt target of $150 million remains unchanged.
All reference to $ (funds) are in Canadian dollars unless otherwise noted.