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Investor Presentation – Yangarra Resources Ltd.

Yangarra Resources Ltd. · May 1, 2014 · 33 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Investor Presentation – Yangarra Resources Ltd. – slide 1
    Yangarra was recognized as a TSX Venture 50 company in 2014. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license Corporate Presentation May 2014 TSX-V: YGR
  2. Investor Presentation – Yangarra Resources Ltd. – slide 2
    Our job is to create shareholder value Integrity and ethical behavior are essential to success Sound ethics and shareholders interests are compatible It is okay to be wrong: own it, accept it, learn from it Embrace adversity, it is…
  3. Investor Presentation – Yangarra Resources Ltd. – slide 3
    Publicly listed junior oil and gas company TSX-V: YGR Shares Outstanding Basic 173 million Options/Warrants (weighted average 0.63) 15 million Fully Diluted 188 million Insider Ownership Basic 15% Fully Diluted 22% Market…
  4. Investor Presentation – Yangarra Resources Ltd. – slide 4
    First Quarter 2014 Production 2,764 boe /d Liquid Content 53% Sales Price 62.37 /boe Royalty income 1.25 / boe Royalty expense (3.73) /boe Production costs (6.42) boe Transportation costs (1.32)/ boe Field Operating netback 52.07…
  5. Investor Presentation – Yangarra Resources Ltd. – slide 5
    Management Team Jim Evaskevich, President & CEO Randall Faminow, VP, Land 30+ years extensive executive experience with strong 30+ years of experience in all aspects of oil and gas land work, operations background including negotiation,…
  6. Investor Presentation – Yangarra Resources Ltd. – slide 6
    30,000,000 20,000 25,000,000 15,000 (Cashflow) 20,000,000 (mboe) 15,000,000 10,000 10,000,000 5,000 5,000,000 0 0 2010 2011 2012 2013 Cashflow Reserves Cashflow per share growth Reserves per share growth 2011 278%…
  7. Investor Presentation – Yangarra Resources Ltd. – slide 7
    6000 25 41% reduction in Drilling Represents 70% average drilling costs of Corporate Costs since 2011 5000 Staff count is down and 473 20 performance is up 4000 498 1,807 373 15 Equip Complete 3000 1,792 1,376 273 Drill 10 Staff…
  8. Investor Presentation – Yangarra Resources Ltd. – slide 8
    Drilling cost per meter Completion cost per stage 800 250,000 700 200,000 600 500 150,000 400 Cost per meter 300 100,000 Cost per 200 stage 50,000 100 0 0 2010 2011 2012 2013 2010 2011 2012 2013 10
  9. Investor Presentation – Yangarra Resources Ltd. – slide 9
    Half Cycle IRR (1) Full Cycle IRR (2) 80% 70% 60% 50% IRR 40% 67% 65% 30% 20% 41% 34% 31% 10% 24% 26% 12% 0% 2010 2011 2012 2013 1. Half cycle IRR is based on actual drilling and completion costs, production to date…
  10. Investor Presentation – Yangarra Resources Ltd. – slide 10
    P+P Reserves (mboe) Reserve Value PV10 ( millions) 20,000 300 18,000 250 16,000 14,000 200 12,000 Oil Oil 10,000 150 NGL's NGL's 8,000 Natural gas Natural gas 100 6,000 4,000 50 2,000 0 0 2010 2011 2012 2013 2010 2011…
  11. Investor Presentation – Yangarra Resources Ltd. – slide 11
    CAPEX budget for 2014 75.0 million Budget focused on Central Alberta Includes one Duvernay vertical test well Funded with cash flow and the existing credit facilities 2014 Guidance Production (boe/d) Annual Average 3,500 boe/d Cash…
  12. Investor Presentation – Yangarra Resources Ltd. – slide 12
    Central Alberta Interest in 140 sections of land 70 total horizontal wells drilled since 2010 Focus Cardium and Glauc plays Pembina Edmonton Willesden Green Light oil Ferrier Rocky Mountain House High netback Red Deer Quick…
  13. Investor Presentation – Yangarra Resources Ltd. – slide 13
    Colorado Group Cardium 650m thick 5m Second White Specks Vertical production 30m exists in all zones Viking 5m All zones meet the criteria for horizontal drilling Glauconitic 20m Ellerslie 10m Rock Creek 15m…
  14. Investor Presentation – Yangarra Resources Ltd. – slide 14
    Gross Net Net Booked in Locations Locations 2013 reserve Inventory Type report Cardium Light Oil (includes 105 78 35 farm-in) Glauconite Liquids Rich 40 26 11 Total 145 104 46 5+ years of drilling inventory in Cardium and Glauconite…
  15. Investor Presentation – Yangarra Resources Ltd. – slide 15
    Drilled or participated in 38 gross (24.6 net) HZ Cardium wells (32 operated) Reservoir is characterized by 60-85% oil and liquid weighting Currently being developed with four wells per section Yangarra owns a 15 % override on 11…
  16. Investor Presentation – Yangarra Resources Ltd. – slide 16
    47 gross (29 net) sections in the Willesden Green area that offset existing Yangarra land holdings 61 gross (37 net) Cardium locations indentified Pay 100% to earn 75%, earn one section per earning well 7 net earning wells over a two…
  17. Investor Presentation – Yangarra Resources Ltd. – slide 17
    Hoadley Glauconite Barrier Island Complex: Development of our Glauconite lands commenced in March 2010 with the drilling of our first horizontal (HZ) well Drilled or participated in 22 gross HZ (13.3 net) wells to date into the…
  18. Investor Presentation – Yangarra Resources Ltd. – slide 18
    Significant amounts of oil have been produced over the past 30 years from vertical wells 10 to 20 million barrels of Original Oil in Place (OOIP) per section Accumulated 45 gross (35 net) sections Yangarra has 3 horizontal…
  19. Investor Presentation – Yangarra Resources Ltd. – slide 19
    Yangarra owns 61 Gross North Block (61 net) sections of Duvernay land South Block Yangarra Land 21
  20. Investor Presentation – Yangarra Resources Ltd. – slide 20
    Let industry de-risk the play Continue land-base to 2020 with three vertical strat test wells Larger players are migrating to the Duvernay which may provide opportunities in plays like the Cardium and Glauc in Central Alberta Our…
  21. Investor Presentation – Yangarra Resources Ltd. – slide 21
    Oil Hedges 2014: 1,200 bbl/d hedged at 95.02/bbl 2015: 1,300 bbl/d hedged at 93.65/bbl Natural Gas Hedges 2014: 5,000 GJ/d hedged at 3.39/GJ or 4.20/mcf* Interest Rate Swaps 4.70% Fixed rate on 10 million (June 2014-June 2018) 4.85% Fixed…
  22. Investor Presentation – Yangarra Resources Ltd. – slide 22
    YGR PEY BNP BXE WCP DTX TVE BNE TOU RMP Production 2,796 72,208 74,015 35,049 26,508 9,372 4,182 12,006 102,564 9,229 Gas Weighting 47% 90% 65% 65% 29% 22% 44% 31% 85% 40% Netback 45.23 23.58 30.24 33.46 53.96 47.21 40.52 44.94 31.03…
  23. Investor Presentation – Yangarra Resources Ltd. – slide 23
    Q1 2014 Operating costs/boe Q1 2014 G&A/boe 35.00 10.00 30.00 8.00 25.00 20.00 Average 17.94 6.00 Average 4.36 15.00 4.00 10.00 2.00 5.00 0.00 0.00 YGR YGR Management team with strong operations background…
  24. Investor Presentation – Yangarra Resources Ltd. – slide 24
    Q1 2014 Debt to Cash Flow Q1 2014 Debt/Equity 10.00 1.60 9.00 1.40 8.00 1.20 7.00 6.00 1.00 5.00 0.80 4.00 0.60 3.00 0.40 2.00 1.00 0.20 0.00 0.00 YGR YGR Focus on reducing costs and maximizing profit Risk management…
  25. Investor Presentation – Yangarra Resources Ltd. – slide 25
    1.40 1.20 1.00 0.80 0.60 0.40 0.20 - 2010 2011 2012 2013 2014 27
  26. Investor Presentation – Yangarra Resources Ltd. – slide 26
    Proven operational track record, on a per share basis Production per share growth of 134% since 2010 Reserve per share growth of 86% since 2010 Focus on improving economics and accelerating capital CAPEX / well down 41% since 2011…
  27. Investor Presentation – Yangarra Resources Ltd. – slide 27
    Appendix 29
  28. Investor Presentation – Yangarra Resources Ltd. – slide 28
    2014 (1,200 bbl/d hedged) 2014 Natural Gas (5,000 GJ/d hedged) 100 bbl/d 98.30 WTI/CAD for 2014 1,000 GJ/d at 3.11/GJ for Jan Dec 2014 100 bbl/d 100.00 WTI/CAD for 2014 1,000 GJ/d at 3.05/GJ for Jan Dec 2014 100 bbl/d 91.40 WTI/CAD…
  29. Investor Presentation – Yangarra Resources Ltd. – slide 29
    Cash Flow Sustainability Ratio (2013) vs. Debt / Cash Flow 500 EV Liquids 225% 500 EV Gas…
  30. Investor Presentation – Yangarra Resources Ltd. – slide 30
    Yangarra is highly leveraged to the Duvernay play in terms of acres to Enterprise Value 32
  31. Investor Presentation – Yangarra Resources Ltd. – slide 31
    Texas Water Demand Irrigation 55.9% Municipal 26.9% Manufacturing 9.6% Steam Electric 4.1% Livestock 1.8% Mining (including oil and gas) 1.6% The amount of water required to drill all 2916 of the Marcellus wells permitted in Pennsylvania…
  32. Investor Presentation – Yangarra Resources Ltd. – slide 32
    34
  33. Investor Presentation – Yangarra Resources Ltd. – slide 33
    Yangarra Resources Ltd. 1530, 715 5 Ave. SW Calgary, Alberta T2P 2X6 403-262-9558 35

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