RE:Yangarra Announces 2021 First Quarter FinancialsOperationally it was a fantastic quarter ...
I think market responds favorably tommorrow if market sentiment is similar too today.
One key metric that was looking for was the percentage spent on equipment out of total spenmt on drilling and completing.
Equipment was 1.77M out of a 16.5M drilling and completations spend..that's just over 10%....
Too put in perspective companies like BNE, IPO etc are way higher...sometimes 40% spent on equipment of what was spent in total on drilling and completing.
It is really going to help improve capital efficienices going forward. The majority of the equipment spend has already been done for YGR.
We completed 8 wells and drilled 7 wells...that is alot of reserves we added in Q1.
And consider this, according to my estimates...2 of those wells completed contributed zero in Q1 production totals...3 wells just started for a few days in March so minimial contribution to Q1...and three wells got producing in Feb....and zero were place on production in January.
YGR has 5 fresh wells at start of April too add to production.
The delayed timing doesnt bother me if done for cheaper costs.
But the bigger reason this low capex cost per well make for such a great quarter is it makes so much more of the tier 2 locations stuff financially viable now.
The go forward model looks to be get CF to 25 a Q and 15m a q capex.....
All very achievable as production will be higher in Q2 and prices are even higher with one less hedge. YGR got 60.80 a barrel for their oil and right now it is 74.66.
I am very happy with the quarter.
mukh6 wrote:
2nd quarter should be better