Yangarra Provides Operations Update and Revises 2012 Capital Budget

Friday, Jan 27, 2012

CALGARY, Jan. 25, 2012 /CNW/ - Yangarra Resources Ltd. ("Yangarra" or the "Company") (TSX-V:YGR) is pleased to provide an operations update and outline revisions to the 2012 capital budget.

Operations Update

The Company continues to advance its Central Alberta focused capital plan and drilled or participated in 6 gross (2.3 net) horizontal wells in the fourth quarter with two operated and one non-operated drilling rigs active.

Current production is approximately 1,700 boe/d with 6 gross (2.05 net) wells (including the two shut in wells) expected on-stream by March 1, 2012 and 2 gross (1.24 net) currently drilling.  The Company is forecasting that first quarter production will average between 1,900 boe/d and 2,100 boe/d.

Reserves Information and Year-end Results

The Company's year-end reserve report summary will be released in early March and the year-end financial results will be released in early April.

Certain information regarding Yangarra set forth in this news release, including management's assessment of future plans, operations and operational results may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserves estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

SOURCE Yangarra Resources Ltd.

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