Yangarra Resources Ltd. · TSX:YGR
Yangarra Resources — Investor Presentation (August 2012)
21 slides from Yangarra Resources's investor presentation, August 2012
Slide 1: Corporate Presentation August 2012 TSX-V: YGR
Corporate Presentation August 2012 TSX-V: YGR
Slide 2: Forward-looking Statements
Forward-looking Statements Statements in this presentation may contain forward-looking information including expectations of future production and components of cash flow and earnings. Forward looking statements or information are based on current expectations, estimates and projections that involve
Slide 3: Reserve Definitions
Reserve Definitions Natural gas has been converted to a barrel of oil equivalent (Boe) using 6,000 cubic feet (6 Mcf) of natural gas equal to one barrel of oil (6:1), unless otherwise stated. The Boe conversion ratio of 6 Mcf to 1 Bbl is based on an energy equivalency conversion method and does not
Slide 4: Summary
Summary • Second quarter production of 2,022 boe/d • 800 boe/d was behind pipe or shut-in on average for the quarter • Significant improvements in costs and fracture techniques being implemented in the 2012 drilling program • Have drilled 40 gross (23.6 net) wells to date in Central Alberta • 126% p
Slide 5: 2012 Summary
2012 Summary 2012 • Focus for 2012 will be on oil targets in the Cardium, Viking and Second White Specks formations • Plan to drill 5 gross (3.4 net) wells for the balance of 2012 • 2012 Capital expenditures will be funded with cash flow • Over five years of drilling inventory in the Glauc, Cardium
Slide 6: Drilling and Completion Optimization
Drilling and Completion Optimization • Implementation of cost controls and advances on HZ well completion techniques have reduced all in well costs to $2.5 million • Average HZ well historical drilling, completion and tie-in costs were $3.5 million • Conventional fracturing costs reduced from up to
Slide 7: Share Structure
Share Structure Publicly listed junior oil and gas company TSX-V: YGR Shares Outstanding Basic 121.7 million Options/Warrants (weighted average $0.65) 12.2 million Fully Diluted 133.9 million Insider Ownership Basic 20% Fully Diluted 26% Market Capitalization (as at August 17, 2012) $41 million Cred
Slide 8: People
People Management Team Dan Helman, P.Eng., VP, Exploitation Jim Evaskevich, President & CEO 28 years of diversified oil and gas engineering experience Including reservoir in-depth evaluation and optimization • 30 years extensive executive experience with strong operations background Ron Gardiner, P.
Slide 9: Core Areas (Alberta, Canada)
Core Areas (Alberta, Canada) Central Alberta • Interest in 140 sections of land • 40+ producing wells • Focus area for remainder of 2012 capital budget Medicine Hat Jaslan • Interest in 120 sections of land • Currently shut-in Edmonton Jaslan Central Alberta Rocky Mountain House • Interest in 32 sec
Slide 10: Production (6:1) & Net backs ($/boe)
Production (6:1) & Net backs ($/boe) 2,500 45 $31.85 $37.94 $39.12 $38.89 $38.08 $22.37 25 2,000 5 1,500 boe/d /d -15 Oil and NGL's 1,000 Gas -35 Netback/boe 500 -55 0 -75 Q1 Q2 Q3 Q4 Q1 Q2 2011 2011 2011 2011 2012 2012 10
Slide 11: 2012 Plan
2012 Plan CAPEX budget for 2012 $25 million Drilling (Cardium, Viking and SWS) $20 million Land, infrastructure and other capital items $5 million Budget is fully funded with cash flow and the existing credit facility 2012 Guidance Production (boe/d) Annual Average 2,000 – 2,500 Exit 2,500 Cash flow
Slide 12: Multi Zone Exposure – Central Alberta Land Holdings
Multi Zone Exposure – Central Alberta Land Holdings 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 • 2012 capital budget Glauconitic will focus on the 20m Ellerslie Cardium, Viking
Slide 13: Glauconite Formation
Glauconite Formation R8 R7 R6 R5W5 CEU EA UU UFC Hoadley Glauconite Barrier Island Complex: T42 G I E 8 F F 9 F V F 10 F 11 UE U F F UU F 12 C F C U 7 K E 8 FU F L G UF 9 F CU 10 I EUU CE EC 11 E A G E A AE E G 12 G E AE F G E A U 7 F C G 8 F9 F E CE E E 10 E 11 FF F U F F I A F 12 U F FUC F F FF FF
Slide 14: Cardium Formation
Cardium Formation R10 R9 R8 R7 R6 R5 R4W5 F V G A F F F L F E E FU I V G E E E K F F I I FE U G G Cardium complex: T44 E GV G 1 AV G 6 A V G V G E E J J1 EU 6 S E S E E E 31I JEU SII U E E UK E E E I U J V J 1 E E36 E 31 E 6 E F E E E E 1 6 1 6 G A G V E V G G E E 1 T44 36 31 G E 36 VS IE S SE EEI E
Slide 15: Second White Specks
Second White Specks • Significant amounts of oil have been F G GF FG F produced over the past 30 years from F F C F I I F EE J G F I E L G I FF F GC G F ECE G F F J G J F G C E F J Cumulative in FJ F Cumulative in vertical wells SiltyFL G C CUMULATIVE F F area 718 J F IN SILTY AREA 718 F G Silty SIL
Slide 16: Duvernay
Duvernay • Yangarra owns 72 Gross (70 net) sections of Duvernay land • Land tenure of typically 4 years before expiry, which can be extended by 5 years with minimal drilling • Estimated to contain 80-100 bcf per section with liquid content estimated to be greater than 100 bbls/mmcf • Current industr
Slide 17: Peer Comparisons (Q2 per boe metrics)
Peer Comparisons (Q2 per boe metrics) $61.28 $22.37 High Average $7.99 $28.71 $26.92 $22.45 Low $8.62 $3.04 $14.63 $10.92 $4.80 $3.39 $0.00 $1.87 $0.00 Field Netback/boe Field Netback/boe Op Costs/boe G&A/boe (Adjusted to Yangarra Oil/Gas Split) 17 Based on internal analysis of 25 peer companies
Slide 18: Peer Comparisons (Q2 per boe metrics)
Peer Comparisons (Q2 per boe metrics) 1.21 9.60 High Average 0.41 2.40 Low 0.47 3.00 0.00 0.00 Debt to Annualized Q2 Cashflow Debt to Equity 18 Based on internal analysis of 25 peer companies
Slide 19: Hedging Program
Hedging Program 2012 (500 bbl/d hedged) • 200 bbl/d @ $97.00 WTI/CAD for 2012 • 100 bbl/d @ $99.00 WTI/CAD for 2012 Average: $97.25 • 100 bbl/d @ $93.25 WTI/CAD for 2012 40 - 50% of Oil and NGL production • 100 bbl/d @ $100.00 WTI/CAD for 2012 2013 (700 bbl/d hedged) • 200 bbl/d @ $98.00 WTI/CAD for
Slide 20: Key Corporate Strategies
Key Corporate Strategies • Maximize netbacks in the current price environment by focusing on oil targets • Minimize drilling costs by keeping internal control over the drilling and completions • Maintain low operating costs through operational presence and cost efficiencies • Continue to grow drilli
Slide 21: Yangarra Resources Ltd.
Yangarra Resources Ltd. 1530, 715 – 5 Ave. SW Calgary, Alberta T2P 2X6 403-262-9558 21
Yangarra Resources — Investor Presentation (August 2012) on 6ix