Mr. Jim Evaskevich reports

YANGARRA ANNOUNCES 2025 CAPITAL BUDGET & GUIDANCE, LAND ACQUISITION AND OPERATIONS UPDATE

Yangarra Resources Ltd. has released its 2025 capital budget and guidance, has discussed a land acquisition, and has provided an operations update.

2025 capital budget and guidance

The company's board of directors has approved a capital budget of $55-million to $60-million for 2025, which will hold production flat at 11,250 to 11,750 boe/d (barrels of oil equivalent per day).

At $68.00 (U.S.)/bbl for WTI (West Texas Intermediate) oil and $2.00/GJ (gigajoule) for AECO natural gas this budget will generate $85-million to $90-million of cash flow ($30-million of free cash flow).

Land acquisition

Yangarra completed a highly complementary farm-in on 11 contiguous sections in the Chambers area. The new lands are adjacent to existing lands and infrastructure and have multizone potential locations including Cardium and Belly River rights. The farm-in will add up to 50 Tier 1 locations to the company's inventory. The company is required to drill two wells in 2025 to earn the farm-in lands.

Operations update

All shut-in production related to third party turnarounds was back on line in early October and the company brought on eight new wells during the fourth quarter. Yangarra will exit the year with two drilled uncompleted wells (DUCs), to be completed in January.

Bank review

The company has completed its semi-annual banking review and the syndicated senior credit facility has been redetermined at $130-million. The next borrowing base review is scheduled for May 31, 2025.

We seek Safe Harbor.