Mr. Jim Evaskevich reports

YANGARRA ANNOUNCES 2023 GUIDANCE AND BANKING UPDATE

Yangarra Resources Ltd. has outlined its 2023 guidance and has provided a banking update.

Capital budget and 2023 guidance

The company's board of directors has approved a capital budget of $125-million for 2023, which includes the drilling of 33 wells which will keep one drilling rig fully utilized for the year. The budget is expected to increase the company's annual 2023 average production to 13,000 barrels of oil equivalent per day (boe/d) with funds flow from operations of $180-million and 2023 year-end debt of $75-million.

The 2023 budget assumes an average price of $75 (U.S.) WTI, $98.50 per barrel (bbl) for Edmonton par and an average price of $4 per gigajoule (GJ) for AECO natural gas.

Borrowing base review

The company has completed its semi-annual borrowing base review and the company's syndicated senior credit facility has been set at $180-million. The next borrowing base review is scheduled for May 31, 2023.

Operations update

The company will exit 2022 with six drilled but uncompleted wells and expects to complete 14 wells in the first quarter of 2023.

We seek Safe Harbor.