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Yangarra Announces Second Quarter 2011 Financial and Operating Results
CALGARY, Aug. 25, 2011 /CNW/ - Yangarra Resources Ltd. (" Yangarra " or the " Company ...
About this update from Yangarra Resources Ltd.
[{"type":"text","content":"\n\n\n\n\n\n\n\n\nCALGARY, Aug. 25, 2011 /CNW/ - Yangarra Resources Ltd. (\"Yangarra\" or the \"Company\") (TSXV: YGR) is pleased to announce its financial and operating\n results for the three and six months ended June 30, 2011.\n\n\nHighlights and accomplishments in the second quarter of 2011 included\n\n\nAverage daily production was 975 boe/d (39% oil and NGL's), which is a\n 13% increase from the first quarter.\n\n\nNet income before tax of $3.5 million, which included $1.9 million of\n mark-to-market hedging gains.\n\n\nOil and gas sales during quarter were $4.3 million with cash flow from\n operations of $3.2 million ($0.03 per share - basic) a 19% and 24%\n increase from the first quarter of 2011, respectively.\n\n\nOperating costs, including transportation, were $8.95/boe.\n\n\nOperating netback of $39.12 per boe, a 3% increase from the $37.94 per\n boe reported in the first quarter of 2011.\n\n\nCapital expenditures were $7.2 million in the quarter and are $25\n million year to date.\n\n\nAs at June 30, 2011, the Company had a working capital deficit of\n $5,958,477 resulting in a debt to annualized trailing quarter cash flow\n ratio of 0.46 to 1.\n\n\nOperations Update\n\n\nCurrent production is approximately 2,000 boe/d (45% oil and NGL's) with\n 6 gross (3.9 net) horizontal (HZ) wells remaining to be placed\n on-stream.\n\n\nCurrent production together with behind pipe volumes and the anticipated\n volumes from the planned drilling program will allow Yangarra to reach\n its 2011 exit guidance of 2,500 boe/d.\n\n\nYangarra plans to spend the remaining $25 million capital of the $50\n million 2011 capital program during the second half of 2011, drilling\n approximately 13 gross (8.7 net) wells with the two drilling rigs\n currently under contract.\n\n\nERCB has approved the holding application for down-spacing in a\n Glauconite gas pool which was re-designated to an oil pool and the two\n HZ Glauconite shut-in wells have been restarted.\n\n\nThe planned Second White Specs zone fracture stimulation was\n successfully conducted on August 22, 2011 and the flow-test results\n will be released as they are available.\n\n\nThe Rock Creek well was put on production in August as planned and is\n producing above expectations, more information will be provided after\n the well has been on-stream for 30 days.\n\n\nThe Company pur...