Yangarra Resources Ltd T.YGR

YGR new land

[kavern23]

It will be interesting to see if YGR will continue to implement best practices from the Permain basin. WCP and YGR seem to be the masters at making as many wells per pad as possible and that best practice came from Permain.

The new thing in Permain in 2021 was 10-15% of wells being 3 mile laterals instead of more common and standard 2. Most companies have expaneed use of 3 mile wells even further....one disadvantage of it is you need to own a big cunky land position.

YGR new land position would definitely be suited for even longer 3 miles wells. I wonder if YGR tries one in 2023...even Cheddarville they could. Don't need many pads if you start doing 3 mile wells. Prob can get a 15-20% cost savings and that is material on 30 wells. 20-3mile wells is obviosuly equal to 30-2mile ones.

Ironically the first 3 mile cardium well I have seen even attempted was by Whtecap and it borders to south east of YGR Cheddarville sign.

Very good sign for YGR as well if this would carry over to YGR lands as well.

WCP well produced near 700 barrels of oil per day for ten days and still cleaning up. That extra mile of well bore is probably giving it 700 instead of 500 of oil.

So good sign this technology works, companies are able to frac that long and stay in zone.

Cheddarvill looks perfect for 3 mile wells east to west. Good way to get production bump and it is cheaper.

[TheRexmember]

Do you think Stampede rigs can handle a three mile well? Or would they need a different driller?

[kavern23]

I think Stampede rig they are currently using could do it. It is fairly high horse power rig, 2 -1300 Hp's, really fast drilling, double rig.  WCP used rig 46 of horizon drilling and it was a big double and not a triple. If stampede rig couldnt do it already it wouldnt take much of a rig upgrade.

[kavern23]

Another observation I wasnt smart enough to notice before is YGR obviously got some of that new land in what is called Phoenix Field T39-R10 from competitors. It looks like YGR got half that land from Orlens Energy and Orlens didnt have much choice. What I failed to realize is alot of the cardium land that is undeveloped is facing government expiry limits in 2023 and 2024. IE if you don't

[kavern23]

Another reason Peyto and especially Petrus are drilling so hard. Alot of cardium land would only have 5 years before it expires...if not held by production.  Some duvernay is like 10 years. Petrus prob wants to get some wells in on land expiring in 2023.  The sept well for PEtrus was expiring soon like in 2023.

[BrownDog5340]

Kavern,  You bring up a good point which I was not aware of.   Do you happen to know if any of Obsidian's land holdings are set up with an expiration?  When they say they have 25 years of drilling inventory, what is the actual window?  Thanks for your input.

[TheRexmember]

Yeah I really wish these guys would have better disclosure. Their shareholder base is dominated by retail who don't always have access to detailed research. They get more out of a concentrated land base than almost anyone else.  Orlens land would make sense, since they have a few JV wells with them. Nice to see they aren't suing each other again, lol.  yGR is back on the

[kavern23]

I think Orlens bought way too much land pre 2019 and the oil patch got tough and they couldnt get it drilled.  Samsum Energy also looks to have got a bit from Orlens. Disclosure on land is a double edge sword as competition for land in Ferrier.  Even CNQ drilled recently north of here. Taqa has and Cenovus have drilled in ferrier. YGR hid their plans quit well and I think YGR had some

[kavern23]

Hey Browndog, OBE land holdings at this point in Cardium are all in the main pools and no expiry issues. Some of their mineral rights are from 1960's. Cenovus also has no to little expiry as probably land yet from Encana and then before think it was alberta energy and on and  that when railway was getting built.  Inplay might have some fringe land though with expiry, inplay land not