CALGARY, June 28, 2018 /CNW/ - Yangarra Resources
Ltd. ("Yangarra" or the "Company") (TSX:YGR) provides an
operations update.
The Company commissioned its 100% owned Ferrier West
facility on June 26th, which has
increased current production to more than 10,000 boe/d.
The Ferrier West facility includes 20 mmcf/d of compression and
a 5,000 bbl/d oil treating facility. The facility was constructed
in 35 days with costs of $3 million
for the compression facility and $1
million for the oil treating facility.
In addition, 5.0 mmcf/d of compression was added to the 100%
owned 02-04 Willesden Green facility (capacity increased to 15.0
mmcf/d) to handle incremental third-party volumes. Yangarra
has 51.0 mmcf/d of compression capacity in 4 plants and 3 oil
treating facilities capable of handling 12,500 bbl/d in
Central Alberta.
The Company resumed drilling operations in late May and has
drilled 2 two-mile horizontal wells, with two additional
wells currently drilling. The five wells that were
drilled and not completed in the winter program have now been
completed and are flowing into the new Ferrier West facility.
During the second quarter, the Company experienced third party
production disruptions, primarily related to the West Ferrier area
which will reduce the average quarterly production by approximately
500 boe/d.
Forward looking information
This press release contains forward-looking statements.
More particularly, this press release contains statements
concerning planned exploration and development activities
and anticipated daily production averages.
The forward-looking statements in this press release are
based on certain key expectations and assumptions made by Yangarra,
including expectations and assumptions concerning the success of
future drilling and development activities, the performance of
existing wells, the performance of new wells, the successful
application of technology, prevailing weather conditions and the
availability of capital, labour and services.
Although Yangarra believes that the expectations and
assumptions on which the forward-looking statements are based are
reasonable, undue reliance should not be placed on the
forward-looking statements because Yangarra can give no assurance
that they will prove to be correct. Since forward-looking
statements address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of factors and risks. These include, but are
not limited to, risks associated with the oil and gas industry in
general (e.g., operational risks in development, exploration and
production; delays or changes in plans with respect to exploration
or development projects or capital expenditures; the uncertainty of
reserves estimates; the uncertainty of estimates and projections
relating to production, costs and expenses; and health, safety and
environmental risks), uncertainty as to the availability of labour
and services, unexpected adverse weather conditions, general
business, economic, competitive, political and social
uncertainties, capital market conditions and the market prices for
securities and changes to existing laws and regulations.
Certain of these risks are set out in more detail in Yangarra's
current Annual Information Form, which is available on Yangarra's
SEDAR profile at www.sedar.com.
Forward-looking statements are based on estimates and
opinions of management of Yangarra at the time the statements are
presented. Yangarra may, as considered necessary in the
circumstances, update or revise such forward-looking statements,
whether as a result of new information, future events or otherwise,
but Yangarra undertakes no obligation to update or revise any
forward-looking statements, except as required by applicable
securities laws.
Barrels of Oil Equivalent
The term barrels of oil equivalent ("BOE") may be misleading,
particularly if used in isolation. Per boe amounts have been
calculated using a conversion ratio of six thousand cubic feet (6
mcf) of natural gas to one barrel (1 Bbl) of crude oil. The
boe conversion ratio of 6 mcf to 1 Bbl is based on an energy
equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the
wellhead. Given that the value ratio based on the current
price of crude oil as compared to natural gas is significantly
different from the energy equivalency of 6:1, utilizing a
conversion on a 6:1 basis may be misleading as an indication of
value.
All reference to $ (funds) are in Canadian dollars.
SOURCE Yangarra Resources Ltd.