RE:RE:RE:RE:RE:APIStockfy....with a capex weighted to drill wells in early 2020....how was YGR supposed to avoid debt going up as commodity crashed right after they drilled all the wells in early 2020?
I don't think any CEO in the world could have done well in 2020 in Alberta. Nobody saw the China Virsus coming.
If anything YGR showed how strong our assets are by having to deal with the covid Crisis.
WHAT JUNIOR avoided an impairment charge? Yangarra did and that shows just the low cost operating cost of the the structure.
For sure increasing leverage is never great but it is not devastating to the long term business plan.
We still have the money to drill wells in 2021 and we are. Debt becomes a problem if we couldnt afford to drill many wells.
But no doubt we need a good 2021.
I would much rather have increasinf debt in a bad 2020 then issuing shares or convertible debentures.
We should have the monthly cashflow right now to cover 2 wells per month to be drilled and tied in. As long as that happens our porduction will really take off. Just give it some time...we only started drilll program in Nov.
The key to YGR hitting two bucks is increased investor interest to the sector, drilling postive NPV wells and...the biggest key is keeping wells to 3.25-3.5M per well range. We drill wells at that capital cost and debt will go down fast.
GL all