Yangarra Announces 2021 Second Quarter Financial and Operating Results

Source: www.gulfoilandgas.com 7/28/2021, Location: North America

Yangarra Resources Ltd. announces its financial and operating results for the three and six months ended June 30, 2021.

Second Quarter Highlights
- Average production of 8,205 boe/d (46% liquids) during the quarter, a 17% decrease from the same period in 2020
- Oil and gas sales were $28.5 million, an increase of 75% from the same period in 2020
- Funds flow from operations of $17.2 million ($0.20 per share basic), an increase of 121% from the same period in 2020
- Adjusted EBITDA was $19.7 million ($0.23 per share basic)
- Net income of $7.8 million ($0.09 per share basic, $10.1 million before tax)
- Operating costs were $6.74/boe (including $1.26/boe of transportation costs)
- Field operating netbacks were $29.78/boe
- Operating netbacks, which include the impact of commodity contracts, were $27.71/boe
- Operating margins were 73% and funds flow from operations margins were 60%
- G&A costs of $0.85/boe
- Royalties were 4% of oil and gas revenue
- All in cash costs were $15.38/boe
- Capital expenditures were $19.5 million
- Completed its annual borrowing base review and the syndicated senior credit facility has been confirmed at $210 million
- Adjusted net debt was $202.7 million
- Adjusted net debt to second quarter annualized funds flow from operations was 2.94 : 1
- Retained earnings of $126 million
- Corporate LMR is 6.5 with decommissioning liabilities of $12.5 million (discounted)

Operations Summary
The Company drilled and completed seven wells during the quarter, including a five-well pad that was brought on production near the end of June and two wells that were brought on-stream in early July. Production during the quarter was negatively impacted by completion activity on the five well pad for adjacent wells and mid-stream maintenance disruptions downstream of Yangarra's O'Chiese facility. As part of the Company's disciplined approach to costs, Yangarra continues to avoid expensive third-party takeaway options when mid-streamers shut down for maintenance.

Yangarra's current production is approximately 10,000 boe/d with all seven wells now onstream. For the remainder of the third quarter, Yangarra is scheduled to drill & complete three wells at O'Chiese and four wells at West Ferrier. The Company expects to have these wells on production by the end of the third quarter.

Staff Changes
Yangarra has appointed Brett Booth to the role of Vice President, Land, replacing Randall Faminow who is retiring after over a 40-year highly successful career in the energy business. Mr. Faminow has been a key part of Yangarra's business plan of building a top tier Cardium asset in Central Alberta. Yangarra would like to thank Mr. Faminow for his dedication over the last nine years in helping build Yangarra.

Mr. Booth has over 12 years of land experience in all aspects of oil and gas land work, including negotiations, acquisitions and divestments, mergers and contracts. He was previously VP Land at Prairie Thunder Resources, Banded Peak Energy, Petrus Resources and prior thereto held various other land positions at Bonavista Energy.

Corporate Budget
Yangarra Board has approved an increase in the capital budget from $60 million to $85 million which will keep one drilling rig fully utilized for the balance of the year.


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