Yangarra Resources Ltd T.YGR

Looking back...

[kavern23]

If you look at end of 2019, before Covid...with WTI at 55-60 band...the three Cardium players were in this range
IPO 65 cents
BNE 2.90-3.5
YGR 1.30-1.40

During 2022 with Covid reopening and Russia war making healthy WTI prices, it really makes logical sense that IPO and BNE with much older assets would out perform YGR.

IPO and BNE got benefit in two ways from 2022 elevated oil prices.  High WTI allowed companies to keep very marginal old oil  wells that produce under 5 barrels of oil per day, and use lots of electricity and water disposal active....producing instead of being shut in.

By keeping a well in "active" status instead of non producing it makes the reclaimation counts look better. It also spits out break even or slight profit at over 80 oil.

One of the reasons if OIl trades at 60-70 band I dont see BNE or IPO outperforming YGR. I mean past history has shown this. Financials for them are publicly avialable for 2015-2019.
Sure BNE and IPO have less debt but their operating costs will feel it at 60-70 band as a 1972 well producing 1.4 barrels is a problem. But that same well at 90 oil is not a problem.

I hope all do well though.

Keeping a healthy drilling location inventory should be focus for BNE, IPO, YGR and PEtrus.
These long extended horizontal reach wells is burning drilling locations fast for all companies.

I want to see BNE and IPO add more land and locations.

[TheRexmember]

I wouldn't disagree too strongly with anything you said there. More rounding issues. I think IPO got lucky with a smal property acquisition that had excellent drilling results. It generated enough free cash flow to bail the company out of debt purgatory.  BNE's oil cut dropped a bit. Probably as much to do with bringing shut in gas wells as much as actual drilling. The difference

[kavern23]

But Rex, how much of BNE's operating cost per barrel reduction they had in 2022 was from fact BNE had a high contribution of fresh 2022 well production...which means having to have  a fairly large drilling well program going forward. They are becoming more like an Yangarra in having a high number of new production carrying production,  BNE doesnt have to work very hard drilling wise

[TheRexmember]

BNE has to drill more if they want to grow quickly. They only need to drill about 30 wells a year to stay flat. Excluding facilities that is like 75 million per year.  Production was exactly mid point of guidance for the year in 2022 at 13,400. Mid to hi was like 400 barrels. No surprises. They drill cheap, simple monobore wells at 2.4 to 2.8 million a pop and grew 5% in 2022. Decline

[kavern23]

Rex, I am not bashing BNE's 2022 year, they made some progress.  Just saying how long can BNE keep drilling 30-40 wells a year  on that existing land base before eventually you start to get diminisinfg returns on each extra well drilled. Hittting the odd well here and there that ip90 200-300 boe really helped bne in 2022, Need to do that again in 2023...