CALGARY, AB, June 30, 2020 /CNW/ - Yangarra Resources
Ltd. ("Yangarra" or the "Company") (TSX:YGR) has completed its
annual borrowing base review and the syndicated senior credit
facility has been confirmed at $210
million of which the Company was drawn approximately
$195 million. The term out date has
been extended to May 28, 2021 and the
maturity date has been extended to May
28, 2022. The only changes to terms and conditions are
to the interest rate grid and the elimination of the Company's
Normal Course Issuer Bid ("NCIB") which had not been utilized.
With the cost savings generated by streamlining drilling and
completion operations, the addition of a construction division and
the benefit of the adoption of real time invoicing, Yangarra has
moved away from a cash flow neutral budget to one that generates
monthly free cash flow of $1 million
dollars with that free cash flow rate accelerating during
spring break up. All free cash flow will be devoted to debt
repayment. Capital spending decisions will continue to be
determined by full cycle rates of return with a threshold of
US$40/bbl WTI for completions and
US$45/bbl WTI for drilling.
The Company's banking syndicate is led by Alberta Treasury
Branches and includes Canadian Imperial Bank of Commerce and
National Bank of Canada.
All reference to $ (funds) are in Canadian dollars unless
otherwise noted.
Forward Looking Information.
Certain information regarding Yangarra set forth in this news
release, 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. In particular, this release contains forward-looking
information relating to its expectations regarding the effect of
streamlining drilling and completion operations and the benefits of
real time invoicing, as well as expectations about its abilities to
generate free cash flow and pay down debt. Accordingly,
actual results may differ materially from those anticipated in the
forward-looking statements. 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. Yangarra undertakes no obligation to update or
revise any forward-looking statements, except as required by
applicable securities laws.
Neither the TSX nor its Regulation Service Provider (as that
term is defined in the Policies of the TSX) accepts responsibility
for the adequacy and accuracy of this release.
SOURCE Yangarra Resources Ltd.