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.