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Yangarra Announces Third Quarter 2013 Financial and Operating Results and Provides 2014 Guidance
CALGARY , Nov. 20, 2013 /CNW/ - Yangarra Resources Ltd. (" Yangarra " or the " Company...
About this update from Yangarra Resources Ltd.
[{"type":"text","content":"\n\n\nCALGARY, Nov. 20, 2013 /CNW/ - Yangarra Resources Ltd. (\"Yangarra\" or the \"Company\") (TSXV:YGR) announces its financial and operating results for the\n three and nine months ended September 30, 2013 and provide 2014\n guidance.\n\n\nQ3 2013 highlights are as follows:\n\n\n\nProduction averaged 2,238 boe/d (46% oil and NGL's).\n\n\nOperating costs including $1.47/boe of transportation costs were\n $6.92/boe which represents a 3% decrease from Q2 of 2013.\n\n\nOil and gas sales including royalty income and realized commodity\n contracts was $9.2 million with funds flow from operations of $6.4\n million ($0.05 per share - basic).\n\n\nNetback of $34.56 per boe is a 14% decrease from the $40.30 per boe\n reported in the second quarter of 2013.  Realized prices were\n $44.89/boe down 8% from $48.95/boe in the second quarter of 2013\n primarily due to realized hedging losses.\n\n\nG&A expenses were $1.76/boe which represents a 10% decrease from the\n second quarter of 2013.\n\n\nCapital expenditures of $8.6 million focused on drilling and\n infrastructure in Central Alberta.\n\n\nAs at September 30, 2013, the Company was in a net debt position of $43\n million compared to $34 million at December 31, 2012.\n\n\nThe debt to annualized third quarter cash flow ratio was 1.7 to 1.0.\n\n\nClosed a 47 section Cardium Farm-In Agreement in the Willesden Green\n Area with an industry major.\n\n\nCompleted a subordinated term loan facility of up to $20 million with\n Alberta Treasury Branches.\n\n\n\n\n\n\nOperations Update\n\n\nThe Company drilled and completed 10 gross (5.5 net) wells during the\n first three quarters of 2013 (1 gross, 0.14 net were non-operated), in\n addition 2 gross (0.6 net) wells that were drilled in 2012 were\n completed in 2013. With the reduced drilling times the Company now\n expects 6 gross (5.7 net) wells to be drilled during the fourth quarter\n of 2013.\n\n\nYangarra continues to experience lower drilling costs with average costs\n of $490/meter in 2013 compared with average drilling costs of\n $614/meter in 2012 and $691/meter in 2011.  The Company drilled its two\n most recent Cardium wells at a cost of $450/meter.  The Company's\n completion costs are also lower with a cost of $60,000 per stage in\n 2013 compared with $107,000 per stage in 2012 and $161,000 per stage in\n 2011.\n\n\...