Yangarra Resources Ltd. · TSX:YGR
Yangarra Resources — Investor Presentation (January 2018)
19 slides from Yangarra Resources's investor presentation, January 2018
Slide 1: Corporate Presentation
Corporate Presentation January 2018 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 81.4 Total Proved 36.5 $489.6 $4.68 3.4x Options (weighted avg. price $1.85) 7.9 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 ➢ Q3 2017 Cash costs totaled $10.74/boe • Operating costs (including transportation) of $6.86/boe • Royalties of $2.43/boe (8% of revenue) • G&A costs of $0.74/boe • Finan
Slide 5: 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 5
Slide 6: 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 7: 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 8: 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 8
Slide 9: 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 9
Slide 10: Cardium Formation
Cardium Formation #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 (88% liquids) 102 stages – 1,53
Slide 11: Production Growth
Production Growth Production Per Share Production Vintage 8000 6x 9,000 160 7000 8,000 150 5x Net Debt / Trailing Cash Flow 7,000 140 Production / MM Shares 6000 # of Producing Wells Production (boe/d) 4x 6,000 130 5000 5,000 120 4000 3x 4,000 110 3000 3,000 100 2x 2000 2,000 90 1x 1000 1,000 80 0 7
Slide 12: Cardium Drilling Inventory Locations
Cardium Drilling Inventory(1) Drilling Locations (1-mile laterals) 1000 900 800 700 Locations 600 500 400 300 200 100 0 2010 2011 2012 2013 2014 2015 2016 2017 Net Gross ➢ 940 gross (740 net) future 1-mile Cardium future drilling locations (1) • Continued to grow inventory by strategically picking u
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: 2018 Capital Plan
2018 Capital Plan CAPEX budget for 2018 $90.0 million ➢ 7 wells in the first half and 15 wells in the second half ➢ Budget focused on Cardium Wells ➢ Funded with cash flow and the existing credit facilities 2018 Guidance Production (boe/d) ➢ Annual Average 9,000 – 10,000 boe/d Cash flow from operati
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 2018 200 bbl/d collar C$62.50 WTI/bbl and a ceiling of C$75.90 WTI/bbl (2018) 300 bbl/d collar C$62.50 WTI/bbl and a ceiling of C$76.10 WTI/bbl (Jan – Jun 2018) 300 bbl/d collar US$55.00 WTI/bbl and a ceiling of US$64.40 WTI/bbl (Jul – Dec 2018) 300 bbl/d at C$71.6
Slide 17: Analyst Coverage
Analyst Coverage Acumen Capital Finance Partners Limited Cormark Securities Inc. Trevor Reynolds Amir Arif, CFA Oil and Gas Research Analyst E&P Equity Research treynolds@acumencapital.com aarif@cormark.com (403) 410-6842 (403) 750-7200 AltaCorp Capital Inc. Industrial Alliance Securities Inc. Thoma
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
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