Slide 1: Corporate Presentation
Corporate Presentation May 2011 TSX-V: YGR www.yangarra.ca
Slide 2: Forward Looking Information
Forward Looking Information 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 involv
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: 2010 Milestones
2010 Milestones • Drilled 6 gross (4.7 net) horizontal wells in Central Alberta • Market Cap increase to $74.0 million from $7.5 million • NPV10 on a Proven plus Probable (P+P) basis, increased to $80.7 million from $37.9 million (113% increase) • 268% increase in oil and natural gas liquids for P+P
Slide 5: Production (6:1) & Net backs ($/boe)
Production (6:1) & Net backs ($/boe) 1000 $35.00 40 900 30 800 $28.83 20 700 $26.36 600 $20.06 10 $13.64 boe/d 500 0 boe Oil and NGL's 400 -10 Gas 300 -20 Netback/boe 200 100 -30 0 -40 Q1 Q2 Q3 Q4 Q1 2010 2010 2010 2010 2011 est. 5
Slide 6: Share Structure
Share Structure Publicly listed junior oil and gas company TSX-V: YGR Shares Outstanding Basic 103.8 million Options/Warrants (weighted average $0.57) 19.4 million Fully Diluted 123.2 million Management and Director Ownership Basic 20% Fully Diluted 28% Market Capitalization $74 million Significant
Slide 7: Management and Directors
Management and Directors Directors Management/Officers • Gordon Bowerman – Lead • Jim Evaskevich – President & CEO Director 30 years extensive executive Founder of several successful experience with strong operations private and public oil and gas background companies • Dan Helman, P.Eng. - VP Explo
Slide 8: 2011 Plan
2011 Plan CAPEX budget for 2011 $50.0 million Fully funded with Credit Facility and Cash Flow Budget includes 31 Gross (13.7 net) wells 9 gross (4.0 net) wells drilled Q1 (4 wells on-stream) Future drilling locations in Central Alberta 131 Gross (78 Net) Fourth quarter 2010 average production 760 bo
Slide 9: Technology
Technology • Drilling and completion technology is developing at an incredible pace, unlocking tight reservoirs Rock Seal Ball Port 9
Slide 10: Exposure & Deal flow
Exposure & Deal flow • Yangarra's exposure to plays like the Hoadley Glauconite is very significant • Main focus of the 2011 budget will be Glauconite and Cardium zones • Yangarra is still small enough to do the deals that bigger players cannot allocate resources to: • 2010: Added two locations for
Slide 11: Core Areas (Alberta, Canada)
Core Areas (Alberta, Canada) Central Alberta • Interest in 45 Sections of land • Focus area for 2011 capital budget Medicine Hat • Interest in 123 sections of land Jaslan • 40+ producing wells Edmonton Jaslan Central Alberta Rocky Mountain House Red Deer • Interest in 17+ sections of land Calgary Me
Slide 12: Multi Zone Potential – Central Alberta
Multi Zone Potential – Central Alberta Cardium 5m thick Second White Specks Colorado Group 30m thick 650m thick Viking 5m thick • Vertical production exists in all zones • All zones meet the Glauconitic criteria for 20m thick horizontal drilling Ellerslie 10m thick • 2011 capital budget Rock Creek i
Slide 13: Impact of Liquids-Rich Gas
Impact of Liquids-Rich Gas $10.00 $8.98/mcf Condensate Value $9.00 Butane Value $8.00 $1.62 Propane Value $7.00 Heating Value Adjust $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 January 1, 2011 pricing on liquids 13
Slide 14: Glauconite
Glauconite R8 R7 R6 R5W5 VF U G Hoadley Glauconite Barrier F F F F E F E F G F FU F VV VVA UF I F V F G G G F UA F C FA G UC F F F G F E U C FV U F G F G F F FF FF GE U FC J F FU K E G E G G I E G F A EC F E F F V G GG F V F V F F F G F FF A F F F F J G E FA L G C F JC G K F U FU F F G U I U F L C I
Slide 15: Glauconite – Generic Type Curves & Economics
Glauconite – Generic Type Curves & Economics Note: Taken from Bonavista Energy Trust’s corporate presentation 15
Slide 16: Cardium
Cardium F I F F LF E EF F E E E FF F E I FE J E EF 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 15 % override on 11 AVG IP90 DLY CAL F F FF C F F E E C F F A EA E A E E E J AE F F F CFE F IE E EE A E JI I I D EE E EEI J J EI E I IEE IE E I J E I E EE F FE J 163 bopd (5 wells) F AVG IP
Slide 17: Cardium – Generic Type Curves & Economics
Cardium – Generic Type Curves & Economics Note: Taken from Bonavista Energy Trust’s corporate presentation 17
Slide 18: 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 CF ELIEF G EC F J G J F FG G F F J FF J Cumulative FG IN in F L Cumulative C in G CUMULATIVE IN F F F J F Silty SILTY G CUMULATIVE F AREA area 2200 Silty area SILTY AREA718 718 MMSTB OIL COil J MSTBF MSTB MSTB Oil F F J I FI A E F I G
Slide 19: Hedging Program
Hedging Program 2011 • 100 bbl/d @ $93.65 WTI/CAD for remainder on 2011 • 100 bbl/d @ $94.00 WTI/CAD for remainder on 2011 • 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 2012 • 100 bbl/d in a col
Slide 20: 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 21: Summary
Summary Strong asset base 1.00 / Share - NAV/Share (as at December 31, 2010) • Versus current share price of $0.71 Significant upside 131 Gross (78 Net) future drilling locations • NPV10 per well in the Glauconite = $4.5 Million • NPV10 per well in the Cardium = $3.7 Million 21
Slide 22: Contact Information
Contact Information Yangarra Resources Ltd. 1530, 715 – 5 Ave. SW Calgary, Alberta T2P 2X6 403-262-9558 22