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.
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