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May 2016 Corporate Presentation – Yangarra Resources Ltd.

Yangarra Resources Ltd. · May 31, 2016 · 23 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. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 1
    Corporate Presentation May 2016 TSX: TSX:YGR YGR
  2. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 2
    Corporate Snapshot Capitalization (post financing) Reserves and Locations (2) Ticker TSX: YGR mmboe NPV10 (mm) Shares Outstanding (mm) Proved Developed 5.6 97.9 Basic 79.2 Total Proved 24.7 315.9 Options (weighted avg. price 1.48)…
  3. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 3
    Corporate Strategy Prepare for future growth Acquire Cardium land at the low-end of the cycle Consolidate partner interests Secure infrastructure capacity Prepare and drill (one-well) pad-drilling sites; leaving significant torque…
  4. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 4
    People 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…
  5. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 5
    Why Own Yangarra Top Decile Full Cycle rates of return Low-cost operator, high netbacks Low-cost philosophy, not just a result of current low commodity prices Central Alberta Cardium formation focus Large future drilling…
  6. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 6
    What does a Recovery look like Source: Peter Tertzakian, Arc Energy Charts Meaningful cash will start to trickle back into the system once oil prices pop above 50/bbl First dollars will be headed to banks Next, producing companies…
  7. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 7
    Full Cycle Returns Capital allocation is determined based on narrowing the gap between half cycle and full cycle returns Half Cycle IRR Full Cycle IRR Full Cycle with Duvernay 90% 80% 70% 60% 50% IRR 40% 79% 67% 65% 30%…
  8. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 8
    F&D and Recycle Ratios Finding and Development Recycle Ratios 40.00 7.0x 35.00 6.0x 30.00 5.0x 25.00 4.0x /boe 20.00 3.0x 15.00 2.0x 10.00 5.00 1.0x - 0.0x 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014…
  9. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 9
    Low-Cost Driller Experienced drilling team Pad drilling from existing locations Long-term relationship with service providers Cemented liners and sliding sleeves reduce costs significantly Coil fracs without nitrogen require less…
  10. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 10
    Updated Completion Technology Sand Concentration Cemented liners and sliding sleeve 1,000 Tighter well frac spacing 900 KG of Sand/M3 800 Increased ability to target fracs 700 Better frac isolation 600 No longer losing…
  11. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 11
    Impact of More Stages 350 Cumulative Production 300 05-17 10.30 Mbbl 12-17 12.52 Mbbl 250 Daily Oil Rate (bbl/d) 200 20% Improvement in IRR 150 100 50 0 0 20 40 60 80 100 120 140 160 180 200 Days on…
  12. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 12
    Extended Reach Well Results Cemented liners with siding sleeves has made extended reach wells possible Significant reduction in drilling costs per meter with extended reach wells Extended Reach Costs 450 40,000 410 400 35,000…
  13. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 13
    Impact of Extended Reach 350 Cumulative Production 300 04-09 10.29 Mbbl 13-09 17.87 Mbbl 250 Daily Oil Rate (bbl/d) 200 33% Improvement in IRR 150 100 50 0 0 20 40 60 80 100 120 140 160 180 200 Days on…
  14. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 14
    Well Economics 45/bbl 55/bbl 65/bbl WTI (USD/bbl) WTI (USD/bbl) WTI (USD/bbl) IRR (%) Payout IRR (%) Payout IRR (%) Payout Willesden Green (yrs) (yrs) (yrs) 1-Mile (2.5 million well cost) 26% 2.7 58% 1.4 87% 1.1 1.5-Mile (3.0…
  15. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 15
    Well Economics IRR - Well Cost Sensitivity Payout (yrs) - Well Cost Sensitivity 160% 1.8 140% 1.6 1.4 120% 1.2 100% 1.0 80% 0.8 60% 0.6 40% 0.4 20% 0.2 3.0 Million 2.7 Million 2.4 Million 2.1 Million 3.0 Million…
  16. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 16
    Cardium Drilling Inventory (1) Drilling Locations (1-mile laterals) Proportionate (gross locations) 500 450 115 North 78 Ferrier 400 Locations Willesden 350 Green 84 2-mile Locations Locations 212 1-mile Locations 300…
  17. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 17
    New Alberta Royalties For wells with TVD shallower than or equal to 2,000 metres C* () = 1,170*(TVD-249) + 800*TLL + 0.6*TVD*TPP For wells with TVD deeper than 2,000 metres C* () = 1,170*(TVD-249) + 3,120*(TVD-2,000) + 800*TLL +…
  18. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 18
    Production Potential 10,000 9,000 8,000 7,000 6,000 Boe/d 5,000 4,000 3,000 2,000 1,000 0 2016 2017 2018 1-Rig 2-Rigs 3-Rigs TSX: YGR 18
  19. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 19
    Risk Management Program Oil Hedges 2016: 400 bbl/d collar C73.45 WTI/bbl and a ceiling of C85.00 WTI/bbl 2016: 400 bbl/d Edmonton par to WTI differential at US3.95/bbl 2016: 200 bbl/d at C54.00 WTI/bbl April June 2016 2016: 200 bbl/d at…
  20. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 20
    Analyst Coverage Acumen Capital Finance Partners Limited Industrial Alliance Securities Inc. Trevor Reynolds Michael Charlton Oil and Gas Research Analyst Research Analyst - Oil & Gas treynoldsacumencapital.com…
  21. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 21
    Cardium Formation Interest in 100+ sections 85+ horizontal wells drilled Yangarra Field Office Red Deer 80 km Rocky Mountain House TSX: TSX:YGR YGR 22
  22. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 22
    Duvernay South Block TSX: YGR 23
  23. May 2016 Corporate Presentation – Yangarra Resources Ltd. – slide 23
    Glauconite Formation 35 36 31 32 33 34 35 36 31 32 33 34 35 36 31 32 33 34 35 36 31 32 33 34 35 36 31 32 33 34 35 36 31 32 33 34 35 36 31 32 33 34 6 5 4 3 2 26 25 30 29 28 27 26 25 30 29 28 27 26 25 30 29 28 27 26 25 30 29 28 27…

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