Yangarra Resources Ltd.

Yangarra Resources Ltd.

June 09, 2006 16:16 ET

Yangarra Announces Short Term Bridge Financing

CALGARY, ALBERTA--(CCNMatthews - June 9, 2006) -

(Not for dissemination in the United States of America)

Yangarra Resources Ltd. (TSX VENTURE:YAN) ("Yangarra") announces that it has entered in to an agreement with Toscana Capital Corporation to provide short term bridge financing to Yangarra in the amount of $3 million. The terms of the financing include 9% annualized interest with associated signing fee. The financing is for a 3 month term with an additional 3 month extension available to Yangarra. Repayment of the bridge financing will be accomplished by a combination of cash flow and non-core property dispositions. The funds will be used to eliminate the working capital deficit of Yangarra.

The Company is also pleased to report that it has recently drilled a successful gas well in Jaslan (working interest 37.5%) and has commenced installation of a compressor station at Jaslan which will process the gas volumes currently behind pipe in the area. Yangarra currently has 200 boe/d pf gas behind pipe in the Jaslan area. An additional three wells are planned for this area by year end. In addition, Yangarra is currently drilling a deep gas test in the Ferrier area of Alberta.

Presentation of barrels of oil equivalent ("boe") information -Petroleum and natural gas reserves and volumes are converted to a common unit of measure on a basis of six thousand cubic feet (mcf) of gas to one barrel (bbl) of oil. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to, market acceptance of principal products, the impact of competitive products and technologies, the possibility of products infringing patents and other intellectual property of fourth parties, and costs of product development. Yangarra Resources Ltd. will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Yangarra Resources Ltd.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.

Contact Information

  • Yangarra Resources Ltd.
    James Evaskevich
    (403) 262-9558
    Website: www.yangarra.ca