Yangarra Resources Ltd. · TSX:YGR
Yangarra Resources — Investor Presentation (October 2011)
24 slides from Yangarra Resources's investor presentation, October 2011
Slide 1: Corporate Presentation
Corporate Presentation October 2011 TSX-V: YGR www.yangarra.ca
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: Share Structure
Share Structure Publicly listed junior oil and gas company TSX-V: YGR Shares Outstanding Basic 116.3 million Options/Warrants (weighted average $0.60) 20.8 million Fully Diluted 137.1 million Management and Director Ownership Basic 19% Fully Diluted 27% Market Capitalization (as at October 21, 2011)
Slide 5: People
People Management Team Jim Evaskevich, President & CEO James Glessing, CA, CFO • 30 years extensive executive experience with • Executive and financial experience as CFO with strong operations background North Peace Energy Corp Dan Helman, P.Eng., VP, Exploitation • Controller at BlackRock Ventures,
Slide 6: Core Areas (Alberta, Canada)
Core Areas (Alberta, Canada) Central Alberta • Interest in 140 sections of land • 30+ producing wells • Focus area for remainder of 2011 capital budget Medicine Hat Jaslan • Interest in 120 sections of land • 48 producing wells Edmonton Jaslan Central Alberta Rocky Mountain House • Interest in 32 se
Slide 7: Production (6:1) & Net backs ($/boe)
Production (6:1) & Net backs ($/boe) 45 1200 $39.12 $37.94 25 1000 $28.83 $20.06 $26.36 800 $13.64 5 boe/d /d 600 -15 Oil and NGL's Gas 400 -35 Netback/boe 200 -55 0 -75 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2010 2010 2010 2011 2011 2011 (est) 7
Slide 8: Summary
Summary • Drilled 27 gross (15.9 net) horizontal wells in Central Alberta • 100% success rate • $21 million credit facility ($5 million un-used) • 5.1 million boe P+P reserves at year-end 2010 (NPV10 $81 million) • 21 gross (11.2 net) horizontal wells drilled since year-end • $52.7 million of P+P fu
Slide 9: 2011 Plan
2011 Plan CAPEX budget for 2011 $50.0 million Budget includes 27 Gross (15.8 net) HZ wells - 21 gross (11.1 net) horizontal wells drilled to date in 2011 - 2 gross (2.0 net) vertical wells drilled to date in 2011 - Current production of 1,800 boe/d - 6 gross (2.7 net) wells remaining to be drilled i
Slide 10: 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 • 2011 capital budget Glauconitic includes capital for 20m Ellerslie drilling in
Slide 11: Future Location Inventory
Future Location Inventory Zone Gross Net Gross Acres Net Locations Locations Acres Glauconite 56 39.5 28,454 15,328 Cardium 26 11.6 17,389 9,907 SWS 25 13.6 24,502 14,071 Rock Creek 25 13.6 25,293 11,856 Viking 25,134 14,496 Ellerslie Completing Geological 28,454 15,328 Evaluation Duvernay 44,160 42
Slide 12: Impact of Liquids-Rich Gas
Impact of Liquids-Rich Gas $10.00 Condensate Value $8.98/mcf $9.00 Butane Value $8.00 $1.62 Propane Value Heating Value Adjust $7.00 $1.60 Dry Gas $6.00 $/mcf $5.00 $1.12 $0.64 $4.00 $3.80/GJ $3.00 $2.00 $1.00 $0.00 Glauconite 12
Slide 13: Technology
Technology • Drilling and completion technology is developing at an incredible pace, unlocking tight reservoirs Rock Seal Ball Port 13
Slide 14: Exposure & Deal Flow
Exposure & Deal Flow • Exposure to plays such as the Hoadley Glauconite is very significant for Yangarra • Main focus of the 2011 budget will be Glauconite and Cardium zones • Yangarra is still small enough to do the deals that larger players cannot afford to allocate resources to • 2010: Added two
Slide 15: Glauconite
Glauconite R8 R7 R6 R5W5 VF F F F E F E F G U F FU F G V F VA UF Hoadley Glauconite Barrier Island Complex FA GE F UA G UC FC J F C F F F U K G E G G I E F G F G F E U A E F C F F CFVU G F EF F FV G GG G G GF GI F V F V F F FF FFF A F F F F F FU F E J G E FU F F FA G F F L G C F JC G K F G U U I U F
Slide 16: Glauconite (Generic Type Curves & Economics)
Glauconite (Generic Type Curves & Economics) 16 *Note: Taken from Bonavista Energy Trust’s corporate presentation
Slide 17: Cardium
Cardium E EF I F F LF F E E E FF F E I FE J E E F E F E E FC J E JE F C E I EI J E E FA E E I IE II E E E E E F E IE E EE I EE FE F C F E C F J Cardium complex: AVG IP90 DLY CAL OIL 163 bopd (5 wells) F AVG IP3 DLY CAL OIL F FF A F E F F C IF F E F F AA E JI I EA E A E E E J E I D E E EEI J J E CF I
Slide 18: Cardium (Generic Type Curves & Economics)
Cardium (Generic Type Curves & Economics) 18 *Note: Taken from Bonavista Energy Trust’s corporate presentation
Slide 19: Second White Specks
Second White Specks F G GF FG F F C F I I F G F G E C F E J G F I E L G I F EEC F J G J FF F GC G F F J Cumulative in FF J Cumulative in FG Generating Trend L G C CUMULATIVEF Silty area 718F IN J F F F Silty F area SILTY G 200 CUMULATIVE AREA 2 IN SILTY MSTB AREA 718 Oil MSTB Oil MMSTB OIL C MSTB F
Slide 20: Peer Comparisons (Q2 per boe metrics)
Peer Comparisons (Q2 per boe metrics) $59.15 $39.49 High $39.49 Average $35.69 $31.52 $8.95 Low $22.24 $19.76 $15.77 $13.12 $5.23 $6.49 $5.89 $2.61 $0.00 Field Netback/boe Field Netback/boe Op Costs/boe G&A/boe (Adjusted for Oil/Gas Split) 20 Based on internal analysis of 15 peer companies
Slide 21: Peer Comparisons (Q2 Debt Ratios)
Peer Comparisons (Q2 Debt Ratios) 2.70 0.49 High Average 1.30 0.46 0.07 0.21 Low 0.00 0.00 Debt to Cashflow Debt to Equity 21 Based on internal analysis of 15 peer companies
Slide 22: Hedging Program
Hedging Program 2011 (700 bbl/d hedged) • 100 bbl/d in a collar from $95.00 – $113.00 WTI/CAD for remainder of 2011 • 100 bbl/d in a collar from $95.00 – $114.00 WTI/CAD for remainder of 2011 • 100 bbl/d @ $93.85 WTI/CAD for remainder on 2011 • 100 bbl/d @ $94.00 WTI/CAD for remainder on 2011 • 300
Slide 23: Key Corporate Strategies
Key Corporate Strategies • Lower operating costs through operational presence and cost efficiencies • Maintain control over infrastructure • Maximize netbacks with liquids rich targets • Maintain flexibility in implementation of new technology • Continue to grow drilling inventory through drilling,
Slide 24: Contact Information
Contact Information Yangarra Resources Ltd. 1530, 715 – 5 Ave. SW Calgary, Alberta T2P 2X6 403-262-9558 24
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