Yangarra Resources Ltd T.YGR

FRESH NEW$$: Has been confirmed $210 million

[PowerofNow]

NEWS PROVIDED BY Yangarra Resources Ltd.  Jun 30, 2020, 13:52 ET CALGARY, AB, June 30, 2020 /CNW/ - Yangarra Resources Ltd. ("Yangarra" or the "Company") (TSX:YGR) has completed its annual borrowing base review and the syndicated senior credit facility has been confirmed at $210 million of which the Company was drawn approximately $195 million. The term out date has been extended to May 28, 2021 and the maturity date has been extended to May 28, 2022.  The only changes to terms and conditions are to the interest rate grid and the elimination of the Company's Normal Course Issuer Bid ("NCIB") which had not been utilized. With the cost savings generated by streamlining drilling and completion operations, the addition of a construction division and the benefit of the adoption of real time invoicing, Yangarra has moved away from a cash flow neutral budget to one that generates monthly free cash flow of $1 million dollars with that free cash flow rate accelerating during spring break up.  All free cash flow will be devoted to debt repayment. Capital spending decisions will continue to be determined by full cycle rates of return with a threshold of US$40/bbl WTI for completions and US$45/bbl WTI for drilling. The Company's banking syndicate is led by Alberta Treasury Branches and includes Canadian Imperial Bank of Commerce and National Bank of Canada. All reference to $ (funds) are in Canadian dollars unless otherwise noted.