Business
Yangarra Provides Operations Update
Yangarra Provides Operations Update Canada NewsWire CALGARY, April 1, 2020 ...
About this update from Yangarra Resources Ltd.
[{"type":"text","content":"\n\n\n\nYangarra Provides Operations Update\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\nCanada NewsWire\nCALGARY, April 1, 2020\n\n\n\nCALGARY, April 1, 2020 /CNW/ - Yangarra Resources Ltd. (\"Yangarra\" or the \"Company\") (TSX:YGR) provides an operations update.\nAs a result of the COVID-19 pandemic, Yangarra has implemented a number of actions to reduce the risk of spread amongst our valuable employee team. The Company's Calgary office has been reduced to two people with the remainder of the team working remotely to ensure the business continues to function and our people stay safe. In the field, Yangarra has implemented social distancing and maintains safe work practices, with minimal impact on operations. \nOperations Update\nDue to the rapid reduction in oil prices, all capital expenditures were halted in February. Currently Yangarra has four drilled but uncompleted wells (\"DUC's\") in the Chedder area that can be completed and put on stream in a very short period of time.\nYangarra has applied extensive additional cost cutting measures to ongoing production operations and other areas throughout the Company. As a result, the Company expects all in cash-costs (operating, transportation, G&A, interest and royalties) to be less than $10 per boe which allows the Company to generate a positive cash flow margin even in the current commodity price environment.\nYangarra has approximately 100,000 bbls of existing available oil storage which will be utilized in the event differentials widen or deliveries to pipeline are halted or curtailed. Current production is approximately 12,000 boe/d.\nGuidance\nFormal guidance from the Company is suspended given the volatility of the market. Capital expenditures were approximately $25 million in the first quarter and spending will re-commence once commodity prices improve. Yangarra remains committed to a cash flow neutral budget and maximizing full-cycle rates of return and will modulate capital expenditures accordingly.\nNormal-Course Issuer Bid (\"NCIB\")\nNo share purchases have been made under the Company NCIB prog...