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Yangarra Announces Completion of Borrowing Base Review and 2021 Capital Budget
Yangarra Announces Completion of Borrowing Base Review and 2021 Capital Budget ...
About this update from Yangarra Resources Ltd.
[{"type":"text","content":"\n \n \n \n Yangarra Announces Completion of Borrowing Base Review and 2021 Capital Budget\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n CALGARY, AB\n \n ,\n \n Dec. 10, 2020\n \n /CNW/ - Yangarra Resources Ltd. (\"Yangarra\" or the \"Company\") (TSX: YGR) completes its semi-annual borrowing base review and sets 2021 Capital Budget.\n \n \n \n Bank Review\n \n \n \n The syndicated senior credit facility has been confirmed at\n \n $210 million\n \n . All other terms remain the same.\n \n \n The Company's banking syndicate is led by Alberta Treasury Branches and includes Canadian Imperial Bank of Commerce and National Bank of\n \n Canada\n \n .\n \n \n \n Capital Budget\n \n \n \n As a result of improving macro conditions, Yangarra's Board of Directors has approved a capital program of\n \n $60 million\n \n for 2021. The Company's 2020 cost-cutting program has generated significant structural and sustainable per well savings on drilling and completions. Yangarra's most recent drilling and completions costs have averaged\n \n $3.25 million\n \n per two-mile well, down 24% from an average of\n \n $4.25 million\n \n over the last two years. As a result, the Company expects to drill & complete 17 wells for 2021.\n \n \n With improved capital efficiencies, the Company requires\n \n $40 million\n \n of capital to hold production flat at 10,000 boe/d. The Company expects to fund the growth wedge of\n \n $20 million\n \n in capital spending through cash flow with the remaining free cash flow to be used toward debt repayment. Yangarra's long-term goal of reaching an absolute debt target of\n \n $150 million\n \n remains unchanged.\n \n \n All reference to $ (funds) are in Canadian dollars unless otherwise noted.\n \n \n \n \n Forward Looking Information\n \n \n \n .\n \n \n \n \n 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 expl...