CALGARY, June 8, 2015 /CNW/ - Yangarra Resources
Ltd. ("Yangarra" or the "Company") (TSX:YGR) provides 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 ("IRR") 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 3rd
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 30th.
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.
SOURCE Yangarra Resources Ltd.