Yangarra provides operations update

As a result of the COVID-19 pandemic, Yangarra has implemented a number of actions to reduce the risk of spread amongst our valuable employee team. The Company’s Calgary office has been reduced to two people with the remainder of the team working remotely to ensure the business continues to function and our people stay safe. In the field, Yangarra has implemented social distancing and maintains safe work practices, with minimal impact on operations.

Operations Update

Due to the rapid reduction in oil prices, all capital expenditures were halted in February. Currently Yangarra has four drilled but uncompleted wells (“DUC’s”) in the Chedder area that can be completed and put on stream in a very short period of time.

Yangarra has applied extensive additional cost cutting measures to ongoing production operations and other areas throughout the Company. As a result, the Company expects all in cash-costs (operating, transportation, G&A, interest and royalties) to be less than $10 per boe which allows the Company to generate a positive cash flow margin even in the current commodity price environment.

Yangarra has approximately 100,000 bbls of existing available oil storage which will be utilized in the event differentials widen or deliveries to pipeline are halted or curtailed. Current production is approximately 12,000 boe/d.

Guidance

Formal guidance from the Company is suspended given the volatility of the market. Capital expenditures were approximately $25 million in the first quarter and spending will re-commence once commodity prices improve. Yangarra remains committed to a cash flow neutral budget and maximizing full-cycle rates of return and will modulate capital expenditures accordingly.

Normal-Course Issuer Bid (“NCIB”)

No share purchases have been made under the Company NCIB program and in the interests of preserving balance sheet strength, the Company does not expect to make any purchases in the near term.

Annual General and Special Meeting

The Company’s Annual General Meeting of Shareholders is scheduled for 10:00 AM on Thursday April 30, 2020.

As a precaution due to the COVID-19 pandemic, the Company will ensure social distancing will be in effect at the annual meeting and Yangarra does not plan to have a formal presentation at the conclusion of the meeting.  Please ensure your vote is represented at the meeting by submitting your Proxy as per the instructions in the in the Notice of Meeting of Shareholders.   A conference call number will be provided for shareholders to listen to the formal portion of the meeting.  We strongly encourage all shareholders to register their votes by proxy and participate in the meeting via the conference call.