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Corporate Presentation – Yangarra Resources Ltd.

Yangarra Resources Ltd. · Feb 1, 2015 · 29 slides

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Slides

  1. Corporate Presentation – Yangarra Resources Ltd. – slide 1
    Corporate Presentation February 2015 TSX: TSX:YGR YGR
  2. Corporate 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. Corporate Presentation – Yangarra Resources Ltd. – slide 3
    Publicly listed junior oil and gas company TSX: YGR Shares Outstanding Basic 57.7 million Options/Warrants (weighted average 1.90) 4.1 million Fully Diluted 61.8 million Insider Ownership Basic 15% Fully Diluted 21% Market…
  4. Corporate Presentation – Yangarra Resources Ltd. – slide 4
    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. Corporate Presentation – Yangarra Resources Ltd. – slide 5
    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…
  6. Corporate Presentation – Yangarra Resources Ltd. – slide 6
    Drilling cost per meter Completion cost per stage 800 250,000 700 200,000 600 500 150,000 400 300 100,000 200 50,000 100 0 0 2010 2011 2012 2013 2010 2011 2012 2013 Q3 2014 Operating costs/boe versus peers Q3 2014…
  7. Corporate Presentation – Yangarra Resources Ltd. – slide 7
    TSX: YGR 7
  8. Corporate Presentation – Yangarra Resources Ltd. – slide 8
    TSX: YGR 8
  9. Corporate Presentation – Yangarra Resources Ltd. – slide 9
    50,000,000 4,000 40,000,000 (Cashflow) 3,000 (mboe) 30,000,000 2,000 20,000,000 10,000,000 1,000 Cashflow Production 0 0 2010 2011 2012 2013 2014 (est) 0.00006 Production per share 0.80 0.70 Cash Flow per Share…
  10. Corporate Presentation – Yangarra Resources Ltd. – slide 10
    P+P Reserves (mboe) Reserve Value PV10 ( millions) 40,000 500 30,000 400 Oil 300 20,000 NGL's 200 10,000 Natural gas 100 0 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 P+P Reserves (mboe) Reserve Value PV10 ( millions)…
  11. Corporate Presentation – Yangarra Resources Ltd. – slide 11
    Central Alberta Interest in 140 sections of land 85 + horizontal wells drilled since 2010 Focus Pembina Cardium and Glauc plays Edmonton Willesden Green Light oil Ferrier Rocky Mountain House Red Deer High netback Quick…
  12. Corporate Presentation – Yangarra Resources Ltd. – slide 12
    T45 T45 T45 T44 T44 T44 LO WE UPP T43 R GA CA ER RD SS IU OIL Y M CAR T43 T43 DIU M T42 W IL LO LE W E SD R T42 EN T42 G R EE C A N R…
  13. Corporate Presentation – Yangarra Resources Ltd. – slide 13
    T42 T42 T43 T43 T43 T41 T41 D N LA T42 IS T42 T42 IER R R T40 T40 A B Y LE D T41 A O D CHANNEL any cut amount H N T41 T41 LA T39 T39 IS IE R D R N R LA T40 A B IS…
  14. Corporate Presentation – Yangarra Resources Ltd. – slide 14
    Let industry de-risk the play Continue land-base to 2020 with strat test wells Larger players are migrating to the Duvernay which may provide opportunities in plays like the Cardium and Glauc in Central Alberta Continue to collect…
  15. Corporate Presentation – Yangarra Resources Ltd. – slide 15
    Early production rates show initial liquids yields up to 200 bbl/MMcf Duvernay operators are still establishing Best Practices for Drilling and Completion Production data supports the emergence of an economically attractive…
  16. Corporate Presentation – Yangarra Resources Ltd. – slide 16
    Very Active Areas with high capital investment currently by majors and large independents North Block primarily in liquids window with new YGR horizontal drilling by NORTH BLOCK Vermillion/Black Swan immediately offsetting (2…
  17. Corporate Presentation – Yangarra Resources Ltd. – slide 17
    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…
  18. Corporate Presentation – Yangarra Resources Ltd. – slide 18
    Appendix TSX: YGR 18
  19. Corporate Presentation – Yangarra Resources Ltd. – slide 19
    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…
  20. Corporate Presentation – Yangarra Resources Ltd. – slide 20
    6,000 41% reduction in Drilling Represents 70% average drilling costs of Corporate Costs 5,000 since 2011 473 Staff count is down and performance is up 4,000 498 1,807 373 Equip 3,000 1,792 Complete 1,376 273 Drill 2,000…
  21. Corporate Presentation – Yangarra Resources Ltd. – slide 21
    Acreage within the liquids/volatile oil fairway South Block (Willesden Green) YGR 7 Net Sections NORTH Net Pay 36 m BLOCK OGIP ranges from 70 to 100 BCF/sec North Block (Pembina) 54 Net Sections YGR Net Pay 20 to 24 m SOUTH…
  22. Corporate Presentation – Yangarra Resources Ltd. – slide 22
    YGR acreage is optimal with high average porosity 6% YGR Acreage TSX: YGR 22
  23. Corporate Presentation – Yangarra Resources Ltd. – slide 23
    R9 R8 R7 R6 R5 R4W5 T43 ECA 102 WILLGR 6-3-43-6 ECA 102 HZ WILLGR 8-5-43-6 T43 MOSAIC WILSONCK 13-35-42-5 Very active Duvernay area ECA WILLGR 16-33-42-6 ECA HZ WILLGR 3-6-43-7 ECA HZ WILLGR 11-33-42-6 within proven liquids T42…
  24. Corporate Presentation – Yangarra Resources Ltd. – slide 24
    R7 R6 R5W5 Talisman 3-28-38-6W5 M SCL HZ 102 FERRIER 4-21-40-7 SCL HZ FERRIER 3-21-40-7 Net Pay (YGR South T40 T40 Block) 36 m Southern Block is de- PARA WILLGR 9-25-39-6 risked by adjacent wells T39 T39 Continuous Duvernay…
  25. Corporate Presentation – Yangarra Resources Ltd. – slide 25
    Vermillion/Black Swan and Sinopec/Daylight have drilled vertical and horizontal test wells adjacent to YGR lands TSX: YGR 25
  26. Corporate Presentation – Yangarra Resources Ltd. – slide 26
    15-18-49-13W5 7-4 - 49-12W5 7-3-47-11W5 7-1-48-10W5 8-32-46-9W5…
  27. Corporate Presentation – Yangarra Resources Ltd. – slide 27
    Oil Hedges 2015: 1,100 bbl/d hedged at 93.32/bbl Natural Gas Hedges 2015: 2,000 GJ/d hedged at 4.11/GJ or 5.10/mcf* Interest Rate Swaps 4.70% Fixed rate on 10 million (June 2014-June 2018) 4.85% Fixed rate on 10 million (June 2014-June…
  28. Corporate Presentation – Yangarra Resources Ltd. – slide 28
    Third Quarter 2014 Production 3,039 boe /d Liquid Content 48% Sales Price 52.80 /boe Royalty income 0.90 / boe Royalty expense (3.40) / boe Production costs (6.45) / boe Transportation costs (1.52) / boe Field Operating netback…
  29. Corporate Presentation – Yangarra Resources Ltd. – slide 29
    Yangarra Resources Ltd. 1530, 715 5 Ave. SW Calgary, Alberta T2P 2X6 403-262-9558 TSX: YGR 31

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