Yangarra Announces Completion of Borrowing Base Review

CALGARY, AB, June 30, 2020 /CNW/ - Yangarra Resources Ltd. ("Yangarra" or the "Company") (TSX:YGR) has completed its annual borrowing base review and the syndicated senior credit facility has been confirmed at $210 million of which the Company was drawn approximately $195 million. The term out date has been extended to May 28, 2021 and the maturity date has been extended to May 28, 2022.  The only changes to terms and conditions are to the interest rate grid and the elimination of the Company's Normal Course Issuer Bid ("NCIB") which had not been utilized.

With the cost savings generated by streamlining drilling and completion operations, the addition of a construction division and the benefit of the adoption of real time invoicing, Yangarra has moved away from a cash flow neutral budget to one that generates monthly free cash flow of $1 million dollars with that free cash flow rate accelerating during spring break up.  All free cash flow will be devoted to debt repayment. Capital spending decisions will continue to be determined by full cycle rates of return with a threshold of US$40/bbl WTI for completions and US$45/bbl WTI for drilling.

The Company's banking syndicate is led by Alberta Treasury Branches and includes Canadian Imperial Bank of Commerce and National Bank of Canada.

All reference to $ (funds) are in Canadian dollars unless otherwise noted.

Forward Looking Information.  

Certain information regarding Yangarra set forth in this news release,  management's assessment of future plans, operations and operational results may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserves estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources.  In particular, this release contains forward-looking information relating to its expectations regarding the effect of streamlining drilling and completion operations and the benefits of real time invoicing, as well as expectations about its abilities to generate free cash flow and pay down debt.  Accordingly, actual results may differ materially from those anticipated in the forward-looking statements.  Certain of these risks are set out in more detail in Yangarra's current Annual Information Form, which is available on Yangarra's SEDAR profile at www.sedar.com.  

Forward-looking statements are based on estimates and opinions of management of Yangarra at the time the statements are presented.  Yangarra may, as considered necessary in the circumstances, update or revise such forward-looking statements, whether as a result of new information, future events or otherwise.  Yangarra undertakes no obligation to update or revise any forward-looking statements, except as required by applicable securities laws.

Neither the TSX nor its Regulation Service Provider (as that term is defined in the Policies of the TSX) accepts responsibility for the adequacy and accuracy of this release.  

SOURCE Yangarra Resources Ltd.

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