Operating Strategies

Yangarra's strategy is to hold large working interests in targeted regions that offer high-quality, long-life light oil and liquids-rich gas reserves. The Company operates its assets and either controls or has high working interests in infrastructure in its core areas. This allows Yangarra greater control over operating costs and ensures access to infrastructure. The Company strives to adapt and implement new technology faster than its peers.

Central Alberta

Yangarra Resources Ltd. has an interest in 140 sections in this field, which is located north of the town of Rocky Mountain House, Alberta.

The area has multi-zone potential from productive zones, including the Cardium, Second White Specks, Viking, Glauconite, Ellerslie, Rock Creek and Duvernay.

Medicine Hat, Alberta

Yangarra Resources Ltd. has a 100 percent working interest (subject to various GORRs of 4-7 percent on one-half of the property) in a total of 123 sections of land in this core area located south of the city of Medicine Hat, Alberta.

A compressor station situated at 5-25-9-6W4, built by Yangarra at the end of 2003, is capable of processing 4 million cubic feet per day and can be expanded to 8 million cubic feet per day.

A total of 62 wells have been drilled on the property to prove up the shallow gas Second White Specks and Medicine Hat zones; as well, deeper gas wells are producing from the Sunburst and Sawtooth formations.

Initial drilling on the property was to determine that the productive capability of the property was commercial. High initial water production rates slowed the development of this property in its formative stage. However, a water transfer and disposal system alleviated the costs associated with high water rates. New methods of determining where the water originated in this multi-zone area have resulted in much lower water production rates in subsequent drilling and completion programs.

Jaslan, Alberta

Yangarra has an interest in 32 sections (100 percent working interest) in this area, located 120 kilometres north of Edmonton. This area has multi-zone potential and shallow drilling depths up to 600 metres. A compressor station was constructed for the area in November 2006, in which Yangarra has a 100 percent working interest.

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© Yangarra Resources Ltd. 2011