Yangarra Resources Ltd T.YGR

Crazy cheap

[Hendrick3]

Now trading below 1x FFO. EV around 2xFFO. And that at current prices for nat gas. It has similar fundamentals to Birchcliff on a per share basis, in fact better with Birchcliff trading around $5.25. Very unloved on a sentiment basis. Doesn't make any sense but I have had stocks like this before and they rocket higher at some point. I feel very bad for sellers who are doing so for liquidity reasons.

[Hendrick3]

Spending capital with a stock price this low is not a good use of capital. A buyback of shares is much better return than drilling. 

[pennydredful]

Their   bank   told them  no   to  share  buy  back  so  they  need to  work   around   that    IF POSSIBLE      ie   new  bank   or secondary  financing    .   They   blew    it when   they  did not&

[Hendrick3]

Go 1/3 capital until debt target. Continue 1/3 capital and do buyback. That could be as much as 25 million shares at today's price. 1/3 capital will cause some reduced production but they were not making good use anyway. 

[cfliesser]

Agreed. I pointed this out and asked if a shareholder vote on capital spending could be considered. Never heard back after that.

[Hendrick3]

I was trading notes with James Glessing (CFO) and a reduced capital plan is under discussion. What that translates to in terms of debt targets and return of capital plans will unfold from there. Based on my correspondence with James, it sounds like you have been heard. 

[pennydredful]

THey should   team up  with  companies  less  capital  constrained  so  those  provide  funds  to  partcipate  on drilling   YGR   lands   or   YGR   drills  others lands   getting  paid   for their drilling  and their  completion 

[Flinflog]

I think a good chunk of their land base at Ferrier, Will green, and Ocheise was acquired through a farm in on TAQA land. A normal deal would be to pay a 100% of drilling costs, earn 100% in the spacing unit(whatever you agree it to be) till payout, and then 60% thereafter. There are drilling commitments to earn further land so that may be one reason YGR is taking a little more drilling risk

[kavern23]

This old presentation lists the farm in lands from Taqa way back when.... https://yangarra.ca/documents/YGR-2015-08-Presentation.pdf Other interesting thing to note from that presenation is the costs of a well from 2010 to 2015...i think those are 1 mile wells. That is what got producers intially like petro bakken in cardium and why BNE struggled for awhile in those years...well costs were too

[pennydredful]

If   YGR   needs  a funding  partner   perhaps   TAQA    is  the place   to look    as  they  are already  partners   of sorts.   I   believe   TAQA   is   formerly   Prime  West   now   Saudi   

[pennydredful]

Another entity  that    has  been  friendly  to  junior   Alberta   juniors   has  been  AIM  who  could be a source   of secondary  financing  ,  not  that they   won't   demand  their   pound of flesh  .   No  free