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Yangarra Announces 2010 Financial and Operating Results

^{Published on 2011-04-19 17:20:24 - Market Wire}
 

 - 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. 

 - 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 

 ------------------------------------------------------------------------- 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 $ - ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- Three months ended Years ended December 31 December 31 2010 2009 2010 2009 ------------------------------------------------------------------------- Land and lease rentals $ 3,827,343 $ 102,562 $ 5,449,298 $ 237,407 Drilling and completion 10,593,594 262,256 16,777,716 854,518 Geological and geophysical 190,640 42,801 505,583 74,615 Equipment 2,148,426 251,496 4,272,875 448,421 ------------------------------------------------------------------------- $16,760,003 $ 659,115 $27,005,472 $ 1,614,961 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- 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 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- Three months ended Years ended December 31 December 31 $/boe 2010 2009 2010 2009 ------------------------------------------------------------------------- Revenues $ 40.94 $ 32.91 $ 35.55 $ 33.74 Royalty income 1.34 - 0.67 - Royalty expense (1.84) (3.82) (0.90) (1.84) Production costs (10.56) (41.63) (9.91) (18.80) Transportation costs (1.04) (2.39) (1.29) (1.30) ------------------------------------------------------------------------- Netback $ 28.83 $ (14.93) $ 24.12 $ 11.80 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- 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 ------------------------------------------------------------------------- 

 (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.