Yangarra Resources Ltd T.YGR

Rex Ygr comments

[kavern23]

Rex are really shocked by the gas cuts?  I mean YGR does put on a slide 24% oil in 13,000 BOE day.
YGR was also lower on the oil cut as 8 wells they drilled in Q1...only 3 produced at all for Q1 and just 15 days. 

YGR's management team is going to these new areas to build reserves.  That's BNE issue...what kind of reserves can they book doing little wells here and there among existing vertical producers.

I think management financial discpline is excellent. Run things very lean.

If I had one crituque on YGR it has always not hedging enough.  Whever NG is over 3.80 in non Dec-March months...company should have 50% hedged.

Very clear and obvious whenever ng is above 4 dollars...it will become oversupplied fast with over drilling by industry,

But good luck to every company.

[TheRexmember]

Just on the increasing gas cut. Thought they were going after an area with more liquids.  The financial management has been pretty bad. The lack of hedges that ended up requiring a share issue is the best evidence of that. 

[fullyautomatic]

Rex, They didn't know at Chambers what exactly the GOR was going to be. The good news is that they found liquids-- all unbooked. I wouldn't say financial managment is bad at all. It shouldn't have been any shareholders expectation that they would hedge, because they don't.. Unless they are forced to. Hindsight it's an really easy call to make on the hedging-- bascially the

[cfliesser]

Yes for sure I wasn't a big fan of not hedging gas either, but they were very up front about what they were doing and as a shareholder this was very clear.