ENP Newswire -
Release date- 14082014 -
Second Quarter Highlights
Production for the quarter was 2,606 boe/d (51% oil and NGL's), a 32% increase from the same period in 2013. The production was negatively impacted by turn-around season at various third party facilities in
Oil and gas sales including royalty income were
Earnings before interest, taxes, depletion & depreciation, amortization and changes in the fair value of commodity contracts ('EBITDA') was
Operating costs were
G&A costs of
The Company successfully drilled or participated in 9 gross (4.8 net) wells during the second quarter of 2014 and the Company expects to drill a total of 6 gross (5.5 net) wells in the third quarter.
The annualized second quarter debt to cash flow ratio was 1.3: 1.
Graduated from the
Completed a 3 to 1 Share Consolidation on
During the first half of 2014 the Company drilled 4.0 gross (4.0 net) wells in South Willesden Green; however, third party facility constraints only allowed full production from these wells as of
The wells were drilled with 1 mile laterals, 18 stage open hole completions using slick water frack's and 540 tonnes of sand per well with resin coated sand tailed into each stage to reduce crushing. Average cost per well to drill and complete was
The internal type curve IP-30 is 190 boe/d (75% Oil and NGL's). No further Cardium wells are planned in this area by the Company this year. In South Ferrier, Yangarra continued its strategy of drilling where it has gas processing capacity (100% owned
Costs were slightly higher than normal at
The average IP-30 for the three wells was 367 boe/d (60% Oil and NGL's). The IP-30 on the internal type curve is 321 boe/d (75% Oil and NGL's). Yangarra's
In Central Willesden Green, the Company drilled a total of 4 gross (3.9 net) wells during the first half of 2014, utilizing the normal two well pad strategy. Two of the wells were on-stream at the end of March and two were on-stream in July.
The first pair were completed with 18 stage fracks and the second pair with 24 stage fracks using a zipper approach of alternating stages between the two wells on the pad. Due to screen out, only 12 stages in each of the second pad wells were zipper fracked and the balance of the stages were performed sequentially.
At this point it is too early to determine if the incremental stages or the zipper frack will result in a material improvement to overall well economics. Average cost per well to drill and complete was
Due to mono-bore drilling, the size of the tubing is limited to 2 3/8 and consequently the size of the bottom hole pump ('BHP') is limited to 150 bbl/d. Fluid levels are still very high on all four wells and as a result the Company expects shallower declines than normal. These wells produce into the Company facility (50% WI) at 2-4-42-7W5 with the liquids rich natural gas then sent to
In North Willesden Green, Yangarra participated in 6.0 gross (1.0 net) wells during the first half of 2014 with the wells currently on test and expected to be on-stream shortly. Yangarra plans to drill 4 gross (2.5 net) additional wells in the area in the second half of 2014.
The Company is also participating in the construction of a 50.0 mmcf/d compression facility (5.54 % working interest) which is scheduled to be commissioned in October of 2014. Two of the planned wells will produce into the new facility and two will produce into an existing third party facility.
The Company commenced drilling on a two well pad targeting the Glauconite oil window in the
Yangarra's strategy is to wait for industry to de-risk the play and to continue the lands to 2020 in the most economical manner possible. The Company will use the
A drilling rig has been contracted by the Company that is currently drilling a
North Block 54 sections (54 net)
Yangarra has conducted an in-depth review of its acreage, using geo-chemical, petro-physical and geo mechanical analyses of offset wells and proprietary reservoir studies. The Company estimates that the
South Block 7 sections (7 net)
The South block has been reviewed by the Company and delineated by several horizontal wells drilled by senior operators immediately adjacent to the Company's acreage. The Company has estimated a net pay of 35 meters, in an over-pressured reservoir and liquids rich fairway. The Company estimates that OGIP ('Original Gas in Place') for this block ranges between 70 and 100 Bcf per section together with significant condensate and NGL volumes.
The Company expects second half production of 3,900 boe/d and cash flow of
Future Drilling Inventory and Well Economics
The Company revised its future drilling inventory in the Cardium and Glauconite to account for recent property acquisitions.
President & CEO
Forward looking information
Certain information regarding Yangarra set forth in this news release, including 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 exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserves estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources.
As a consequence, actual results may differ materially from those anticipated in the forward looking statements.
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