Yangarra Resources Ltd T.YGR

Capex

[kavern23]

We got some more clues on Capex for 2024 by the fact YGR licensed 4 1 mile wells in Ferrier.
That could be way they have a lower capex than we expect.

20 - 1 mile wells = 50m
6 - 2 mile wells = 20m
5-10m for land, etc etc

75-80m total

The new 4 well pad in ferrier is interesting as it is on land YGR presentation shows they dont own.
good land too, ferrier in that hot spot.  I think reason it never got drilled that section is enerplus owned it and than journey got it from their canadian buy...and perhaps YGR got it from Journey. YGR can used an existing lease so makes sense.

[pennydredful]

Journey  had recently  reported  some non  core sales  with no specifics mentioned.

[Helloworld]

Best thing about this is they are doing 4 wells in the section. Past life they would probably jam 6 to 8 in there. Shows they are learning hopefully. 

[Helloworld]

On a side note there were two other licenses in ferrier (4 mile one and one beside taqa well and one of the 2022 boomers) that used to be in petroninja but now seem to have disappeared. Anyone know if these are still happening? The well beside Taqa would be good.  It's been over a year and a half (and almost $3 slide in share price) since they last hit some really good wells. Hopefully

[fullyautomatic]

The 4 mile well was/is a glitch. They do not have this licensed. The rig is currently drilling partial YGR percentage ownerships. Pieces of the ferrier area are quite fragmented ownership which is one way Capex can be reduced by sharing drilling costs with other producers. Maybe the OFS helps in these scenarios too as they can bill the 3rd party??

[kavern23]

4 mile was a glitch.  Is that recent license of 4 wells partial as well?

[fullyautomatic]

Kav, I think they are partner wells too yes. 

[Hendrick3]

This would be an excellent way to cut capital and keep their OFS group busy so that they can continue to leverage that organization and may be earning recoveries or working interest in wells. 

[Helloworld]

Agreed. The more jvs the better.  If they can manage capital to 15 million a quarter with jvs and cashflow 25 million a quarter this would be great.  Even 15 million a quarter should provide 5 or so wells that even if average should hold production.  Incredible value at current commodity prices. End of 2024 should begin buybacks and hopefully nat gas improves with additional

[margaritaman]

Agreed Hellworld. This is the key differentiater between YGR and its peers and is always overlooked. The ability to keep opex low during normal business operations and at times like this where drilling is dialed back to contain costs they can become a source of revenue.  Interesting to see what they come up with for Capex next month. Based on commodity price I am hoping for $60M - $70m to

[kavern23]

And they have an advantage of not having to spend 7-12m a year on reclamation like most do.

[kavern23]

Agreed..noticed that as well and 4 is better per section than 6-8....at least for short term and short term is what matters what now with fall YGR had.