Yangarra Resources talks well drilling at Belly River

Executive Summary

• Yangarra Resources is actively developing the Belly River play in its Chambers area, leveraging existing infrastructure and Cardium production.
• The company has identified 40 net Tier 1 drilling locations with 10 wells currently on production, and plans to delineate the play further over the next 6-12 months with potential for an additional 60 net locations.
• Operational improvements, including transitioning to gelled fracture stimulation and upgrading bottom-hole pumps, have significantly increased production rates, with the 10th well producing over 500 BOE/d.

Key Details

• Land and Inventory: Majority of land acquisitions complete; 40 net Tier 1 Belly River drilling locations identified; 10 Belly River wells currently on production.
• Future Plans: Plans to delineate the play across the Chambers area land base over the next 6-12 months, with potential to expand inventory by an additional 60 net locations.
• Immediate Operations: Two standing Belly River wells scheduled for fracture stimulation this week; two additional Belly River wells expected to commence drilling in the near term.
• Technical Evolution:
  • Early wells faced challenges maintaining the drill bit in the target zone, using slickwater fracture stimulation.
  • Drilling performance improved significantly by the fifth well.
  • Transitioned to gelled fracture stimulation design beginning with the seventh well.
• Production Performance:
  • First group of wells delivered average IP90 rates of approximately 200 barrels of oil equivalent per day (BOE/d).
  • 10th well implemented a reconfigured bottom-hole pump (BHP), resulting in substantial productivity increases.
  • 10th well is currently producing above 500 BOE/d (68% liquids) following a two-week cleanup period.
  • BHP systems upgraded in wells 8 and 9, resulting in significant production increases despite already being on production.
• Data Availability: Detailed individual well results for both the Belly River and Cardium zones are available in Yangarra's updated corporate presentation.