Yangarra Announces First Quarter 2013 Financial and Operating Results
CALGARY, May 21, 2013 /CNW/ - Yangarra Resources Ltd. ("Yangarra" or the "Company") (TSXV: YGR) announces its financial and operating results for the three months ended March 31, 2013.
Highlights of the quarter ended March 31, 2013 are as follows:
- Production was 1,809 boe/d (47% oil and NGL's) with production negatively impacted by 200 boe/d shut-in due to the drilling of new wells on existing pad sites.
- Oil and gas sales including royalty income was $7.7 million with funds flow from operations of $4.8 million ($0.04 per share - basic).
- Operating costs for the first quarter, including $0.96/boe of transportation costs, were $9.00/boe
- The Q1 2013 netback of $34.34 per boe is a 16% increase from the $29.66 per boe reported in the first quarter or 2012. Realized prices were $42.68/boe up 28% from $33.30/boe in the first quarter of 2012 (realized natural gas prices increased by 63%).
- Capital expenditures of $11 million focused on drilling and infrastructure in Central Alberta
- As at March 31, 2013, the Company had a bank debt and working capital deficit of $42 million compared to $34 million at December 31, 2012.
- Yangarra constructed a gas processing facility (100% working interest) in the quarter with the facility online April 10, 2013 which brought on eight previously standing wells.
Financial Summary
| 2013 | 2012 | |||||||
| Q1 | Q1 | |||||||
| Statements of Comprehensive Income (Loss) | ||||||||
| Petroleum & natural gas sales | $ | 6,518,381 | $ | 6,907,412 | ||||
| Net income (loss) for the period (before tax) | $ | (393,286) | $ | (983,334) | ||||
| Net income (loss) for the period | $ | (259,424) | $ | (1,790,789) | ||||
| Net income (loss) per share - basic and diluted | $ | (0.00) | $ | (0.02) | ||||
| Statements of Cash Flow | ||||||||
| Funds flow from (used in) operating activities | $ | 4,814,183 | $ | 5,146,554 | ||||
| Funds flow from (used in) operating activities per share - basic and diluted |
$ | 0.04 | $ | 0.04 | ||||
| Cash from (used in) operating activities | $ | 4,452,879 | $ | 1,937,376 | ||||
| Statements of Financial Position | ||||||||
| Property and equipment | $ | 130,356,002 | $ | 122,891,333 | ||||
| Total assets | $ | 148,761,517 | $ | 147,718,686 | ||||
| Working Capital Deficit | $ | 42,469,266 | $ | 34,241,989 | ||||
| Non-Current Liabilities | $ | 12,482,223 | $ | 9,752,766 | ||||
| Shareholders equity | $ | 79,430,341 | $ | 77,613,288 | ||||
| Weighted average number of shares - basic | 121,711,723 | 117,494,735 | ||||||
| Weighted average number of shares diluted | 121,711,723 | 118,962,415 | ||||||
Operations Summary
Net petroleum and natural gas production, pricing and revenue are summarized below:
| 2013 | 2012 | |||||
| Q1 | Q1 | |||||
| Daily production volumes | ||||||
| Natural gas (mcf/d) | 5,090 | 6,018 | ||||
| Oil (bbl/d) | 502 | 438 | ||||
| NGL's (bbl/d) | 291 | 347 | ||||
| Royalty income | ||||||
| Natural gas (mcf/d) | 709 | 1,481 | ||||
| Oil (bbl/d) | 2 | 12 | ||||
| NGL's (bbl/d) | 48 | 91 | ||||
| Combined (boe/d 6:1) | 1,809 | 2,139 | ||||
| Product pricing (includes royalty income & realized gains/losses on commodity contracts) |
||||||
| Oil ($/bbl) | $ | 86.80 | $ | 89.86 | ||
| NGL ($/bbl) | 52.62 | 63.87 | ||||
| Gas ($/mcf) | 3.41 | 2.09 | ||||
| Combined ($/boe) | $ | 44.95 | $ | 37.61 | ||
| Revenue | ||||||
| Petroleum & natural gas sales - Gross | $ | 6,518,381 | $ | 6,907,412 | ||
| Royalty income | 369,338 | 839,177 | ||||
| Commodity contract settlement | 430,418 | (425,781) | ||||
| Total sales | 7,318,137 | 7,320,808 | ||||
| Royalty expense | (261,092) | (446,817) | ||||
| Petroleum & natural gas sales - Net | $ | 7,057,045 | $ | 6,873,991 | ||
| Change in fair value of contracts | (2,185,484) | (1,819,208) | ||||
| Total Revenue - Net | $ | 4,871,561 | $ | 5,054,783 | ||
Operating Netbacks (boe/d)
The Company's operating, cash flow and net income netbacks are summarized below:
| 2013 | 2012 | |||||||||
| Q1 | Q1 | |||||||||
| Sales Price | $ | 42.68 | $ | 33.30 | ||||||
| Royalty income | 2.27 | 4.31 | ||||||||
| Royalty expense | (1.60) | (2.30) | ||||||||
| Production costs | (8.04) | (4.89) | ||||||||
| Transportation costs | (0.96) | (0.76) | ||||||||
| Operating netback | $ | 34.34 | $ | 29.66 | ||||||
| G&A and other (excludes non-cash items) | (2.54) | (1.90) | ||||||||
| Finance expenses | (2.24) | (1.32) | ||||||||
| Cash flow netback | 29.57 | 26.44 | ||||||||
| Depletion and depreciation | (18.23) | (20.84) | ||||||||
| Accretion | (0.33) | (0.12) | ||||||||
| Stock-based compensation | - | (1.19) | ||||||||
| Unrealized gain (loss) on financial instruments | (13.42) | (9.35) | ||||||||
| Deferred income tax | 0.82 | (4.15) | ||||||||
| Net Income (loss) netback | $ | (1.59) | $ | (9.20) | ||||||
Working Capital Summary
The following table summarizes the change in working capital during the three months ended March 31, 2013 and year ended December 31, 2012:
| 2013 | 2012 | ||||||||
| Working capital (deficit) - beginning of period (1) | $ | (36,301,842) | $ | (34,028,162) | |||||
| Funds flow from operating activities | 4,814,183 | 14,588,405 | |||||||
| Purchase of property and equipment | (11,262,592) | (24,448,531) | |||||||
| Sale of property and equipment | - | 4,650,000 | |||||||
| Issuance of shares | - | 2,552,333 | |||||||
| Bank Debt | (8,828) | 384,113 | |||||||
| Working capital (deficit) - end of period (1) | $ | (42,759,079) | $ | (36,301,842) | |||||
| Credit facility limit | $ | 45,000,000 | $ | 42,000,000 | |||||
| (1)Excludes non-cash change in fair value of commodity contracts | |||||||||
Capital Spending
Capital spending is summarized as follows:
| 2013 | 2012 | ||||||||
| Q1 | Q1 | ||||||||
| Land and lease rentals | $ | 1,060,280 | $ | 147,489 | |||||
| Drilling and completion | 8,036,865 | 6,621,898 | |||||||
| Geological and geophysical | 33,678 | 154,180 | |||||||
| Equipment | 1,879,815 | 651,963 | |||||||
| Other Asset Additions | 251,954 | 8,998 | |||||||
| $ | 11,262,592 | $ | 7,584,528 | ||||||
Disclosure Items
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).
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.
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.
See Management's Discussion and Analysis for the three and nine months ended September 30, 2012 for a special note regarding Non-IRFS measures.
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.
SOURCE: Yangarra Resources Ltd.
For further information, please contact Jim Evaskevich, President & CEO.
Suite 1530, 715 - 5 Avenue S.W.
Calgary, Alberta T2P 2X6
Phone: (403) 262-9558 Fax: (403) 262-8281
Webpage: www.yangarra.ca Email: [email protected]
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