Yangarra Releases 3rd Quarter Results

CALGARY, Nov. 24 /CNW/ - Yangarra Resources Ltd. ("Yangarra" or "the Company") (TSX Venture: "YGR") announces it has released its unaudited interim consolidated financial statements and related management's discussion and analysis for the third quarter ended September 30, 2010.  The Company's financial statements can be viewed on SEDAR www.sedar.com or the Company's website at www.yangarra.ca.

The operational and financial highlights for the quarter are as follows:

For the three months ended September 30, 2010 petroleum and natural gas revenue was $1,821,333 on sales of 536 boe/d with an average price of $36.93/ boe.  Net royalties amounted to 5% of the gross sales, due to royalty rate on the wells the Company drilled within the three months and year.  Production costs over the quarter were $9.79 per boe and transportation costs were $1.44 per boe with field netbacks of $26.36 per boe.

Cash flow from operations for the third quarter was $921,972 with a net loss of $166,794 and net working capital deficiency including bank debt of $7,691,402. Production volumes for the quarter were reduced due to plant turnarounds conducted during the month of September.

Yangarra has accumulated approximately $1.9 million of Drilling Royalty Credits which can used to reduce future royalty costs. Credits received under this program result in an equal reduction on capital spent for drilling and time limits on the utilization of the credits may result in some forfeiture of the accumulated amounts.  In addition, Yangarra estimates that it has accumulated approximately $650,000 of Natural Gas Deep Drilling Program Credits which do not expire and can be used to reduce future crown royalty expenditures.

Operations Update

Yangarra has drilled two Glauconite and two Cardium horizontal wells and participated in one additional Cardium horizontal well during 2010 which are currently onstream and producing into Company owned facilities in the Willesden Green area of Alberta.  The third Cardium horizontal well (100% working interest), located in the Willesden Green/Ferrier area of Alberta is scheduled to be fracture stimulated in early December 2010 and tied into third party facilities shortly thereafter. Yangarra's contracted drilling rig is scheduled to move to a fourth Cardium well in Willesden Green and then to the third Glauconite location prior to the holiday season.  The Company expects to enlarge its Willesden Green compression facility early in 2011.

Following is a list of the initial production rates (IP 30) of all of the horizontal wells for the first 30 days of production (unless otherwise noted):

Location	Horizontal Length	Fracturing	Working Interest (w.i.)	IP	Production
06-03-41-7W5 Glauconite (operated)	710 m	8 stages 200 tonne	100% w.i.	IP 30	602 boe/d
09-20-41-7W5 Cardium (non-operated)	699 m	5 stages 150 tonne	68.15% w.i. plus 15% override	IP 30	85 boe/d
07-20-41-7W5 Cardium (operated)	725 m	8 stages 200 tonne	68.15% w.i. plus 15% override	IP 30	324 boe/d
13-02-41-7W5 Glauconite (operated)	1106 m	12 stages 300 tonne	68.15% w.i. plus 15% override	IP 4*	1106 boe/d (restricted rate)

*only 4 days initial production rates available

Current Company daily production is approximately 1400 boe/d weighted 40% to oil and natural gas liquids. Yangarra advises that current production rates have a considerable amount of new production which is subject to significant declines.

Subsequent to quarter end, the Company closed an asset acquisition in the Ferrier/Willesden Green Area, completed a financing for gross proceeds of $13.0 million, and obtained a $9.0 million credit facility (see press releases dated Oct 25, Oct 28, and Nov 15, 2010).

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.

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.

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.  

For further information:

For further information, please contact James Evaskevich, President and CEO at [phone].