Peyto Exploration & Development Corp. press release
Yangarra Announces 2010 Financial and Operating Results
TSX - Toronto Stock Exchange · Natural Gas · Natural Gas Liquids · Oil · Canada
Apr. 19, 2011 (Canada NewsWire Group) --
CALGARY, April 19 /CNW/ - Yangarra Resources Ltd. ("Yangarra" or the "Company") (TSXV:YGR) is pleased to announce its financial and operating results for the three and twelve months ended December 31, 2010.
Highlights and accomplishments in 2010 included:
<< Market capitalization increase to $60.6 million from $7.5 million Current market capitalization is over $70 million
Proved plus Probable reserves, net present value discounted at 10% ("NPV 10") at December 31, 2010 was $80.7 million, an increase of 113% compared from the NPV 10 amount at year-end 2009 of $37.9 million
Net Asset Value of $79.9 million as at December 31, 2010, calculated to be $1.00 per basic common share.
Increase of 268% in oil and natural gas liquids for Proved plus Probable reserves to 1,805 mbbl
Purchased a 15% gross sliding scale over-ride on 11 sections in the Willesden Green area for $1.3 million
Completed equity raises in March, May, June and October for total proceeds of $23 million, with each equity raise priced at a premium to the previous financing.
Secured a drilling rig for the balance of 2010, through to spring breakup 2011 and exercised an option to retain the drilling rig through spring breakup 2012.
Completed an asset acquisition in the Ferrier/Willesden Green area of Alberta for $4.0 million The asset included 31 sections of land (12.3 net), 10 gross producing wells (4.25 net) and 9 gross standing wells (4.8 net) and production of approximately 50 boe/d, 90% weighted to oil.
Entered into a credit facility agreement with Alberta Treasury Branches in November 2010, current facility has been increased $14,500,000. >>
Subsequent to the year ended December 31, 2010 the Company completed the following:
<< Established a capital budget for 2011 of $50 million which includes the drilling of 31 gross (13.7 net wells)
Significantly increased the Company's future drilling locations to 123 gross (70.2 net) locations in the Glauconite, Cardium and multiple other zones >>
Year End Disclosure
The Company's financial statements, notes to the financial statements and management's discussion and analysis have been filed on SEDAR (www.sedar.com) and are available on the Company's website (www.yangarra.ca). An Annual Information Form, including the Company's reserves and resource data for the period ended December 31, 2010 as evaluated by AJM Petroleum Consultants and other oil and natural gas information prepared in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities, will be filed on SEDAR prior to the end of the month.
The Company's Annual General Meeting of Shareholders is scheduled for 10:00 AM on Thursday May 26, 2011 in the Plaza Room - Metropolitan Centre, 333-4th Avenue SW, Calgary, AB.
Financial and Operations Summary
The following tables summarize the Company's financial and operating statistics for the fourth quarter and the year ended December 31, 2010.
Financial Summary
<< Three months ended Years ended December 31 December 31 2010 2009 2010 2009 Statement of Operations and Deficit Net (loss) income for the period $(1,195,890) $(1,797,141) $(4,047,125) $(7,268,020) Net (loss) income per share - basic $ (0.02) $ (0.02) $ (0.07) $ (0.09) Net (loss) income per share - fully diluted $ (0.01) $ (0.02) $ (0.07) $ (0.09)
Weighted average number of shares basic 73,869,598 83,809,055 57,581,832 78,313,321 Weighted average number of shares fully diluted 80,497,022 83,809,055 57,581,832 78,313,321
Statement of Cash Flows Funds flow from operations $ 1,567,756 $ (640,581) $ 2,959,286 $ 106,856
December 31 December 31 2010 2009 Balance Sheet Property and equipment $61,475,178 $38,830,516 Total assets $65,945,647 $39,641,449
For the Years ended December 31 2010 2009 2008 Statement of Operations and Deficit Petroleum & natural gas sales $ 6,534,377 $ 3,579,738 $ 8,642,336 Net (loss) income for the period $(4,047,125) $(7,268,020) $(1,825,080) Net (loss) income per share basic $ (0.07) $ (0.46) $ (0.15)
Weighted average number of shares basic 57,581,832 15,662,664 13,499,997
Statement of Cash Flows Funds flow from operations $ 2,959,286 $ 106,856 $ 3,820,278
Balance Sheet Property and equipment $61,475,178 $38,830,516 $41,922,138 Total assets $65,945,647 $39,641,449 $44,081,309 Preferred shares $ 1,000,000 $ 1,000,000 $ - >>
Capital Expenditures
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Operating / Production Summary
<< Three months ended Years ended December 31 December 31 2010 2009 2010 2009 Daily production volumes Natural gas (mcf/d) 2,564 1,362 2,151 1,583 Oil (bbl/d) 260 11 116 12 NGL's (bbl/d) 54 12 28 15 Royalty income (boe/d) 19 - 6 - Combined (boe/d 6:1) 761 249 509 291
Product pricing Oil ($/bbl) $ 80.54 $ 69.07 $ 74.70 $ 65.56 NGL ($/bbl) $ 62.30 $ 50.37 $ 56.04 $ 38.03 Gas ($/mcf) $ 3.93 $ 3.69 $ 3.92 $ 3.88 Combined ($/boe) $ 40.94 $ 32.91 $ 35.55 $ 33.74
Revenue Petroleum & natural gas sales - Gross $ 2,864,802 $ 754,728 $ 6,534,377 $ 3,579,738 Royalty income $ 93,882 $ - $ 123,106 $ - Royalty expense $ (128,984) $ (87,683) $ (165,309) $ (195,223) Royalty recovery $ 114,092 $ 289,728 Petroleum & natural gas sales - Net $ 2,829,700 $ 781,137 $ 6,492,174 $ 3,674,243 >>
Netback Summary
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Operations Update
Post spring break-up in the Willesden Green/Ferrier area the Company will continue its 2011 capital program. Seven gross (2.2 net) wells that were drilled during the first quarter will be tied-in and be brought on production. The Company estimates that approximately 900 boe/d of flush production volumes from the first quarter drilling program are behind pipe, with production on these wells expected to commence following spring breakup. The Company has 22 gross (10 net) wells planned for the remainder of the year. Therefore, the Company has an additional 29 gross (12 net) wells that should be added to the production base during 2011, which should allow the Company to meet its previously announced exit rate of 2,500 boe/d.
2011 Guidance
In February 2011, Yangarra provided guidance of an exit rate of 2,500 boe/d for 2011, for which additional metrics and assumptions are summarized below:
<< Production (boe/d) Annual Average 1,500 - 2,000 Exit 2,500
Cash flow from operations ($millions) 20 - 30 Capital expenditures ($millions) 50
Operating netback $35.00 - $40.00/boe
Pricing Assumptions (annual average) Crude oil - WTI $90.00/bbl Natural Gas Liquids $67.92/bbl Natural Gas $4.00/mcf >>
Natural gas has been converted to a barrel of oil equivalent (Boe) using 6,000 cubic feet (6 Mcf) of natural gas equal to one barrel of oil (6:1), unless otherwise stated. The Boe conversion ratio of 6 Mcf to 1 Bbl is based on an energy equivalency conversion method and does not represent a value equivalency; therefore Boe's may be misleading if used in isolation. References to natural gas liquids ("NGLs") in this news release include condensate, propane, butane and ethane and one barrel of NGLs is considered to be equivalent to one barrel of crude oil equivalent (Boe). One ("BCF") equals one billion cubic feet of natural gas. One ("Mmcf") equals one million cubic feet of natural gas. Operating netbacks are calculated as revenue from all products less operating costs.
Reserve Definitions:
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(a) "Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. (b) "Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. (c) "Developed" reserves are those reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure (e.g. when compared to the cost of drilling a well) to put the reserves on production. (d) "Developed Producing" reserves are those reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty. (e) "Developed Non-Producing" reserves are those reserves that either have not been on production, or have previously been on production, but are shut in, and the date of resumption of production is unknown. (f) "Undeveloped" reserves are those reserves expected to be recovered from know accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reserves classification (proved, probable, possible) to which they are assigned. (g) The Net Present Value (NPV) is based on AJM Forecast Pricing and costs. The estimated NPV does not necessarily represent the fair market value of our reserves. There is no assurance that forecast prices and costs assumed in the AJM evaluations will be attained, and variances could be material. >>
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.
All reference to $ (funds) are in Canadian dollars.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy and accuracy of this release.
James Glessing, Chief Financial Officer, at (403) 262-9558