Yangarra Resources Ltd T.YGR

Encouraging Well

[kavern23]

That petrus well just above (north) YGR's land in Pheonix looks really encouraging.
Looks to have done  1350- 1400 mcf a day (225 BOE) on NG and condy i don't know yet.
It's only a 1 mile well. CNQ on longer laterals are 100k mcf for month of Nov....600k in revenue on NG alone.

If YGR can hit 2500-3000 Mcf a well....be very very nice.

[TheRexmember]

Here is stockwatches energy summary. He does a pretty good job of throwing companies under the bus.  He is right about the credit line reduction though. Wonder if that was what pushed out the dividend?  Maybe another cut is coming in May?  Here in Canada, Jim Evaskevich's Alberta Cardium-focused Yangarra Resources Ltd.(YGR) added 19 cents to $2.96 on 610,800 shares

[cfliesser]

I don't think the credit reduction is a problem....  Note they pay to have credit available. Something like 2% even unused. Speculation here, but if they have no intention in using more credit (becauee it's expected to get paid back) why keep extra credit for nothing. It does have a cost. For a company this size it's not nothing. 

[cfliesser]

1% standby fee. So imagine have $30M in unused for no reason (assuming they do not foresee needing it) That's $300k flushed down the toilet. I think having a cushion is good but no need for an unnecessarily large one. Unless you want to acquire. 

[pennydredful]

This   fee   cannot   be  looked  at   wholly   in isolation  as   It   would   be   part   of   the overall  bank   package    including    interest   rate   on  the loan.   Re   any 

[pennydredful]

It    is   likely  the co.  has no  negiotiating  power  currently .  I  doubt  if  ANY   banks are  knocking at  ANY   oil and  gas   company,s   door   offering   money. Banks   as   federally  regulated entities  can,t 

[TheRexmember]

300k is pretty much nothing. So is 1 million in this business for that matter when wells are 4 million per.  The trend seems to be combining term debt plus an RBL and maybe a debenture with some warrants as well. The only ongoing renewals being the RBL.  laddered maturities and amortizing term debt - With most of the the bank lines carrying near zero balances.  Surge and

[kavern23]

Rex, these boards are good for debates...different view points is good and encouraged. So didnt the last three years show the strength of YGR compared to BNE by how much of an easier of a time YGR had then BNE in renewing bank lines. Think the obvious reason is the low future reclatimation costs YGR has....that really limits risk for the banks. Banks dont think like a stockhouse oil and gas

[TheRexmember]

I don't think the overall size prohibts a dividend for either company completely. Bne paid 1.3 billion in dividends over a long time and most of that time it was a much smaller company. Really there were two pretty bizarre events that occurred to ruin strategies and balance sheets - the pipeline debacles in 2018 followed by a pandemic. Seriously  - back to back Black swan events

[kavern23]

Look at the strategy of CPG and ERF. They are dumping the older high ARO assets. And assets they are not dumping, like sask bakken for CPG is funding their Alberta duvernary CPG would be f*cked right now if they didnt get into the Alberta Duvernay. They would have run the risk of overcapitalizing in their Sask assets. And it makes sense Whitecap sold some old assets as WCP has so many good

[SecondhandGnus]

Kavern and Rex, your interesting debate has got me thinking in terms of a forestry analogy, where woodlots are valued differently (assuming no development potential) depending on the value of the species and maturity thereof.  Studwood/lumber is more valuable than pulpwood, which is worth more than firewood. High growth/value (think Montney) is worth more than lower growth (Deep Basin or

[kavern23]

In keeping with a forest or woodlot analogy, good post btw, but isn't underspending in ARO similar to under replanting new tree's on a woodlot that has been harvested. Just hurts returns in the future. YGR has been buying new land or woodlots.  Bonterra has been just harvesting their existing woodlot. The most critical press release for YGR coming up in my view is the next reserve

[kavern23]

This chart shows alot...even explains some of share performance over the last few years.   2017   2018 2018   2019 2019   2020 2020   2021 2021 4 year growth   Total BOE

[kavern23]

This is the cold f*ckin reality for both bne and ygr when they produce 13,000 BOE a day for a year: That is 13000 * 356 days = 4.628m barrels a year that always has too be replaced. I am hoepful YGR gained 3-4m boe to 24m range when report comes out.  Because of low reclamation I think YGR can run lower in proved delveloped reserves but I think it is better they are over 25m in oroducing

[SecondhandGnus]

Although they have different growth rates, debt burdens and ARO costs, I find it strange just how close to 13K BOE/d YGR, BNE, IPO and Petrus will be at YE 2023--it's uncanny. Only OBE is significantly larger among the publicly-traded Cardium producers, and much of their growth is elsewhere. I'm glad I'm not the only one wondering about eventual consolidation, but who is big enough

[TheRexmember]

Hey Kav. To me the key takeaway is that BNE does not NEED to reinvent themselves because the asset base is that big and that good. Instead they addressed ARO obligations in the last two years, right sized the debt, renewed management, and they are adding some infrastructure for the next stage.  YGR probably is good for another 2-3000 boe before facility work is needed although they

[TheRexmember]

Hey Gnus. interesting comment. Buy both! i think ygr is in a mgt penalty box until they hit some numbers. I think bne is/was in a retail penalty box while they adjusted strategy. The drop was compounded by tax loss selling. I suspect most of that stock has already moved into tougher hands.  what I truly respect is that neither management team diluted the cr ap out of the company