CALGARY, Jan. 20, 2014 /CNW/ - Yangarra Resources Ltd. ("Yangarra" or the "Company") (TSXV: YGR) provides 2013 operations
summary, December 2013 exit production, 2014 operations update, and
2013 Operations Summary
The Company has successfully drilled and completed 15 gross (10.6 net)
wells during 2013, in addition to completing 2 gross (0.6 net) wells
that were drilled in 2012. All of the wells drilled in 2013 were
completed by December 31, 2013, with the last 3 wells (2.75 net) tied
in the last week of December 2013.
In January 2013 Yangarra began construction of an 11 mmcf/d gas
processing facility in the Ferrier area (100% working interest) that
was put in service April 10, 2013 which provided for the tie-in of 8.0
gross (2.4 net) standing wells, six of which had been drilled in 2011
In September 2013 Yangarra entered into a farm-in agreement with an
industry major adding 61 gross (37 net) Cardium locations. Yangarra has
drilled 7 gross (5.35 net) wells (4 of which were earning wells) which
exceeded its initial drilling obligation under the terms of the farm-in
agreement, to drill 2 earning wells by the end of March 31, 2014.
Late in 2013 Yangarra negotiated a swap with an industry partner to
concentrate their respective interests in the Ferrier area. In the
swap arrangements Yangarra exchanged its Glauconite interest in 2 wells
and 3 sections (average 17% working interest) for Cardium interests in
4 wells and 1.5 sections (average 30.6% working interest).
Yangarra acquired 1,760 acres (1,760 net) of land in Central Alberta
during 2013 at crown land sales spending approximately $2.1 million.
The Company's December 2013 production averaged approximately 3,000
2014 Operations Update
Yangarra's contracted drilling rig commenced operations after the
Christmas break on a two well pad (1.75 net Cardium wells) in Willesden
Green on December 28th, with the first well now drilled and the second well on the pad
expected to be rig released January 23, 2014. Completion operations
will commence on January 24th with a frac date booked for January 28, 2014. The Company expects to
drill 4 gross (4.0 net) additional wells prior to breakup and with an
additional two well pad ready (2.0 net wells) in the event that breakup
is later than expected.
Yangarra has identified 30 Cardium and Glauconite locations that could
be developed with long reach (1.5 mile & 2 mile) horizontal wells.
Yangarra plans to drill its first long-reach horizontal well after
spring breakup in 2014.
The Company's current production is approximately 3,300 boe/d.
2014/2015 Hedging Program
The Company has 1,200 bbl/d of oil hedged at $95.02/bbl, 100 bbl/d of
propane hedged at $45.99/bbl and 5.25 mmcf/d of natural gas hedged at
$4.20/mcf for calendar 2014.
The Company has hedged 900 bbl/d of oil at $90.59/bbl for calendar 2015.
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.
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.
For further information:
James Evaskevich, President and CEO at (403) 262-9558