Yangarra Resources Ltd. Announces Earnings and Operating Results for the Second Quarter and Six Months Ended June 30, 2015
Aug 11 15
Yangarra Resources Ltd. announced earnings and operating results for the second quarter and six months ended June 30, 2015. For the second quarter, the company’s second quarter combined production averaged 2,155 boe/d (18% decline from first quarter of 2015) compared with 2,606 boe/d for the same period a year ago, with approximately 650 boe/d shut in over the quarter primarily at the 2-4 Willesden Green gas processing facility. Production from the 2-4 facility is predominantly oil with relatively low rates of gas; however, with the gas shut in the oil is curtailed as well. Natural gas daily production was 7,992 mcf against 7,306 mcf a year ago. Oil daily production was 554 bbl against 1,003 bbl a year ago. NGL’s daily production was 238 bbl against 309 bbl a year ago.
For the six months, the company’s combined production averaged 2,397 boe/d compared with 2,700 boe/d for the same period a year ago. Natural gas daily production was 8,353 mcf against 7,438 mcf a year ago. Oil daily production was 668 bbl against 1,019 bbl a year ago. NGL’s daily production was 300 bbl against 361 bbl a year ago.
For the second quarter, the company reported petroleum and natural gas sales of CAD 6,010,973 against CAD 13,876,299 a year ago. Net loss before tax was CAD 2,390,401 against net income before tax of CAD 3,821,726 a year ago. Net loss was CAD 3,202,592 or CAD 0.05 per basic and diluted share against net income of CAD 2,851,233 or CAD 0.05 per basic and diluted share a year ago. Funds flow from operations was CAD 3,627,985 or CAD 0.06 per basic and diluted share against CAD 8,180,361 or CAD 0.15 per basic and diluted share a year ago. Cash from operating activities was CAD 4,464,139 against CAD 6,386,075 a year ago. Adjusted EBITDA (which excludes changes in derivative financial instruments) was CAD 4.1 million or CAD 0.06 per share-basic. Oil and gas sales, after royalties and funds flow from operations represents a 57% and a 56% decrease, respectively, from the same period in 2014 due to reductions in commodity pricing and shut in production. The net loss was impacted by a CAD 1.4 million one-time charge for the increase in the Alberta provincial corporate tax rate. Total capital expenditures were CAD 8.3 million. The company drilled 3 gross (2.35 net) wells in the second quarter to earn 4 sections and acquired a 5.5% interest in a third party gas processing plant. Net debt as on June 30, 2015 (which excludes the current derivative financial instruments) was CAD 45.531 million down from CAD 59.8 as at year end December 31, 2014.
For the six months, the company reported petroleum and natural gas sales of CAD 13,164,147 against CAD 29,571,278 a year ago. Net loss before tax was CAD 1,023,089 against net income before tax of CAD 5,023,794 a year ago. Net loss was CAD 2,257,475 or CAD 0.04 per basic and diluted share against net income of CAD 3,570,683 or CAD 0.07 per basic and diluted share a year ago. Funds flow from operations was CAD 13,019,339 or CAD 0.22 per basic and diluted share against CAD 18,640,053 or CAD 0.36 per basic and diluted share a year ago. Cash from operating activities was CAD 10,495,061 against CAD 12,394,854 a year ago.
Yangarra Resources Ltd. Provides an Operations Update on Cemented Liner and Drilling Operations
Jun 8 15
Yangarra Resources Ltd. provided an operations update on cemented liner and drilling operations. Yangarra drilled two Cardium wells (1 mile laterals) in 2015 from the same surface pad using cemented liner and sliding sleeves, the first as an 18 stage well and followed up with a 30 stage well. Initial production for the first 30 days ("IP 30") was 158 boe/d and 190 boe/d (both 91% oil), respectively, which is approximately a 25% and 50% improvement over 18 stage ball drop systems in the immediate area. The company's half cycle rates of return on type wells in 41-07W5M area of Willesden Green are now greater than 55% with payouts of less than 1.5 years (based on current strip commodity pricing), due to the lower service costs and incremental production from the cemented liners. The 41-07W5M area of Willesden Green have the lowest half cycle IRRs in Yangarra's portfolio of greater than 350 future drilling locations; however, the access to infrastructure in the area allows the wells to generate competitive full cycle rates of return. With the cemented liner technology, Yangarra is now comfortable drilling extended reach wells and recently drilled and cased its first 1.5 mile (4,320 m measured depth) Cardium earning well. The 1.5 mile well was drilled and cased in 12.9 days (spud to rig release) at a cost of $1.4 million as a result
of the knowledge gained from the first two cemented liner wells, lower service costs, improved drilling mud motors, and better drill bit selection. The company plans to complete (45 stages) and tie in the well early in the third quarter. As expected, the TCPL rotating pipeline shut-ins have continued throughout the second quarter and
the Company will provide an update on the effect of the outages on production after June 30, 2015.