Capital Budget & Guidance
Yangarra’s fourth quarter production guidance is 10,000 boe/d with funds flow from operations of $29 million, assuming an average price of CDN$85.00/bbl for Edmonton par and an average price of CDN$4.00/GJ for AECO natural gas. Fourth quarter capital spending is estimated to be $23 million which will result in $6 million of debt repayment before year-end.
The Company’s Board of Directors has approved a capital budget of $105 million for 2022, which includes the drilling of 30 gross wells. The budget is expected to increase the Company’s annual 2022 average production to 12,000 boe/d with funds flow from operations estimated at $130 million. The 2022 budget assumes an average price of CDN$78.00/bbl for Edmonton par and an average price of CDN$3.50/GJ for AECO natural gas.
Fourth quarter to date, the Company has brought on four wells and expects to bring on four additional wells in December. In addition, drilling operations have commenced on a fourteen-well pad, with initial completions scheduled for early 2022.
The syndicated senior credit facility has been confirmed at $210 million. All other terms remain the same.
A revised corporate presentation is available on the Company’s webpage: