Yangarra Resources Ltd. · TSX:YGR
Yangarra Resources — Investor Presentation (June 2017)
20 slides from Yangarra Resources's investor presentation, June 2017
Slide 1: Corporate Presentation
Corporate Presentation June 2017 TSX: YGR TSX: YGR
Slide 2: Corporate Snapshot
Corporate Snapshot Capitalization Reserves and Locations (2) Ticker TSX: YGR NPV10 NAV(3) / FD Recycle December 31, 2016 mmboe ($mm) Share Ratio(4) Shares Outstanding (mm) Proved Developed 7.9 $139.1 $0.70 2.4x Basic 80.2 Total Proved 36.5 $489.6 $4.68 3.4x Options (weighted avg. price $1.55) 7.7 Pr
Slide 3: The Team
The Team 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, acquisitions and divestments, contracts and merger
Slide 4: Why Own Yangarra?
Why Own Yangarra? Top Decile Full Cycle rates of return Central Alberta Cardium formation focus Low-cost operator, high netbacks ➢ Q1 2017 Cash costs totaled $13.08/boe • Operating costs (including transportation) of $7.93/boe • Royalties of $3.05/boe (8% of revenue) • G&A costs of $0.51/boe • Finan
Slide 5: Cardium Formation 119 (89 net) Sections of Cardium
Cardium Formation119 (89 net) Sections of Cardium #6 - YGR 102/8-14-41-6W5 – 2.0 mile 107 stages – 1,571 tons On Prod: February 3, 2017 Clean-up phase (Day 1-20): 217 boe/d (93% liquids) #7 - YGR 102/16-15-44-10W5 – 2.0 mile #2 - YGR 100/1-14-41-6W5 – 2.0 mile Production phase (Day 21-35): 534 boe/d
Slide 6: Full Cycle Returns
Full Cycle Returns 1. Half cycle IRR is based on actual drilling and completion costs, production to date and P+P reserves 2. Full cycle IRR allocates all other capital costs to the wells (i.e. land, G&G, infrastructure) TSX: YGR 6
Slide 7: Reserves Growth
Reserves Growth Reserves Per Share (boe per share) (2P) Reserves Profile $0.80 $0.76 Volumes (boe) NPV10 ($) $0.70 $0.65 $0.60 2P Reserves / share $0.60 Nat. $0.50 Gas 18% $0.40 $0.36 $0.31 Nat. $0.30 Gas Oil/ $0.22 53% NGL's Oil/ $0.20 47% NGL's 82% $0.10 $0.00 2011 2012 2013 2014 2015 2016 Gross R
Slide 8: F&D and Recycle Ratios
F&D and Recycle Ratios Finding and Development Recycle Ratio vs Added Reserve Volumes $30 30 7x $140 Finding & Development Costs* ($ / boe) 2P Reserve Additions (mmboe) $25 25 6x $120 5x $100 Recycle Ratio* (x) $20 20 WTI ($US) / bbl 4x $80 $15 15 3x $60 $10 10 2x $40 $5 5 1x $20 $0 0 0x $0 2011 201
Slide 9: Production Growth
Production Growth Production Per Share Production Vintage 60 6x 9,000 160 2017 based on 5 wells drilled in 50 5x 8,000 the first quarter and 12 wells in 150 Net Debt / Trailing Cash Flow second half of 2017 Production / MM Shares 7,000 140 # of Producing Wells 40 4x Production (boe/d) 6,000 130 30 3
Slide 10: Deeper Drill Path
Deeper Drill Path Upper Cardium Bioturbated Lower Cardium New Well Path Old Well Path Upper Cardium Bioturbated Zone Lower Cardium Old Frac Plane New Frac Plane Upper Cardium (5-15% Porosity) 2.5-4.0m Bioturbated Zone (20-80% Sand) 3.0-7.0m Lower Cardium (3-6% Porosity) 1.5-3.0m TSX: YGR 10
Slide 11: Deeper Drill Path
Deeper Drill Path 105 API 3% Upper Reservoir Core analysis Porosity 9-11% Kmax average 0.09md OOIP 2,959 Mstb OBOEIP 8,218 Mbbl 10m Bioturbated Interval not analyzed Log Porosity 3-4% OOIP 2,198 Mstb OBOEIP 6,105 Mbbl Total Package OOIP/section 5,157 Mstb OBOEIP/section 14,323 Mbbl TSX: YGR 11
Slide 12: Cardium Drilling Inventory
Cardium Drilling Inventory(1) Drilling Locations (1-mile laterals) 800 700 600 Locations 500 400 300 200 100 0 2010 2011 2012 2013 2014 2015 2016 2017 Net Gross ➢ 752 gross (522 net) future 1-mile Cardium future drilling locations (1) • Continued to grow inventory by strategically picking up land in
Slide 13: Cardium Well Economics
Cardium Well Economics Top 'Cardium Oil' Monthly Volumes Seen in April 2017 600 Monthly Associated Mth Daily Frac Total (boe/d) Oil (bbls/d) Company Field Vol Gas Oil Stage Production Per Day 500 (bbl) (mmcf) (bbl/d) (#) Yangarra Resources Ferrier 17,787 28.9 775.0 na Company A Pembina 15,148 8.4 83
Slide 14: 2017 Capital Plan
2017 Capital Plan CAPEX budget for 2017 $70.0 million Budget focused on Cardium Wells ➢ 5 wells in the first quarter and 12 wells in the second half Funded with cash flow and the existing credit facilities 2017 Guidance Production (boe/d) ➢ Annual Average 5,500 – 6,000 boe/d Cash flow from operation
Slide 15: Duvernay Formation
Duvernay Formation Recent Well Results (Sorted By RR Date) #1 Shell: 100/09-27-039-06W5 RR: 2014/02/17 35,097 bbl cum CND 339,544 mcf cum gas Completion: 14 stages; 70-90t #2 Shell: 103/08-11-040-08W5 RR: 2014/07/18 12,722 bbl cum cnd 781,274 mcf cum gas Completion: 16 stages; 72-90t #3 YGR: 100/15-
Slide 16: Risk Management Program
Risk Management Program Oil Hedges 2017 200 bbl/d collar C$65.00 WTI/bbl and a ceiling of C$75.00 WTI/bbl (2017) 100 bbl/d at C$70.00 WTI/bbl (2017) 200 bbl/d at C$71.00 WTI/bbl (Feb – Jun 2017) 200 bbl/d at C$69.25 WTI/bbl (Mar – Jul 2017) 300 bbl/d at C$67.00 WTI/bbl (Apr – Jun 2017) 500 bbl/d at
Slide 17: Analyst Coverage
Analyst Coverage Acumen Capital Finance Partners Limited Industrial Alliance Securities Inc. Trevor Reynolds Michael Charlton Oil and Gas Research Analyst Research Analyst - Oil & Gas treynolds@acumencapital.com mcharlton@mgisecurities.com (403) 410-6842 (403) 705-4978 AltaCorp Capital Inc. Paradigm
Slide 18: 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 19: 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 20: Yangarra Resources Ltd.
Yangarra Resources Ltd. 1530, 715 – 5 Ave. SW Calgary, Alberta T2P 2X6 403-262-9558 TSX: YGR 20
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