Yangarra YGR.v +.04 to C$.70
Posted: Thursday Jan 30 7:51:46AM 2014
Yangarra is a small energy company that I've owned several times. They are typically very cheap and I bought after reviewing them against other oil companies in 2013 at around C$.54. They have been steadily climbing on low volume.
Yangarra finished Q3 at 2238boepd. They recently reported in a January update that they are at 3300boepd. That is their guidance for 2014 average production so it's likely they are setting a low goal.
Yangarra should finish 2013 with $27million in cashflow. They are projecting $40million(.33/share) cashflow for 2014. They have 78 net cardium drill locations and another 28 net Hoadley Glauconite locations plus some unproven Duvernay acreage. The Duvernay land consists of 61 net sections and Yangarra recently issued shares for .54 and .64 for flowthru shares to finance 3 stratigraphic test wells to hold the acreage thru 2020. This land is obviously a big bet for this little company but they have typically been cautious but very good operators.
They are cheap, based on cashflow, have good Cardium inventory and big upside if the Duvernay develops as many believe. Compared to most operators, Yangarra has very low SG&A expenses and operational costs. They are not very promotional but are delivering production and prospects for future growth.