CALGARY, April 26, 2012 /CNW/ - Yangarra Resources Ltd. ("Yangarra" or the "Company") (TSX-V:YGR) is pleased to provide an operations update.
Average production for the first quarter of 2012 was approximately 2,000 boe/d a 16% increase from the fourth quarter of 2011. The Company is forecasting second quarter production will average between 1,900 boe/d and 2,100 boe/d.
The Company's contracted drilling rig is presently in the shop being recertified with the window provided by spring breakup. Drilling operations are expected to resume late June or early July. Given the current natural gas price environment the Company will execute a capital plan for the remainder of 2012 that is focused on oil targets and funded with cash flow.
Credit Facility Review
Following Alberta Treasury Branches ("ATB") review of Yangarra's 2011 reserve report the credit facility was increased to $42 million. The current amount drawn on the facility is $30 million and the next credit facility review is scheduled for May 2013.
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.
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.
For further information:
please contact James Evaskevich, President and CEO at (403) 262-9558.