Yangarra Resources Ltd. · TSX:YGR

Yangarra Resources — Investor Presentation (July 2015)

29 slides from Yangarra Resources's investor presentation, July 2015

  1. Slide 1: Corporate Presentation July 2015

    Corporate Presentation July 2015 TSX: TSX:YGR YGR

  2. Slide 2: Corporate principles and values

    • Our job is to create shareholder value • Integrity and ethical behavior are essential to success • Sound ethics and shareholders interests are compatible • It is okay to be wrong: own it, accept it, learn from it • Embrace adversity, it is a difficult business • Diversity of skill-sets within the

  3. Slide 3: Publicly listed junior oil and gas company

    Publicly listed junior oil and gas company TSX: YGR Shares Outstanding (post financing) Basic 67.7 million Options (weighted average $1.84) 6.3 million Fully Diluted 74.0 million Insider Ownership 14%/21% Basic/Fully Diluted Market Capitalization (at $1.18/share) $80 million Q1 Net Debt (adjusted fo

  4. Slide 4: Management Team and Board of Directors

    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 mergers Lorne S

  5. Slide 5: IRR

    Half Cycle IRR (1) Full Cycle IRR (2) 80% 70% 60% 50% IRR 40% 67% 65% 30% 20% 41% 34% 31% 33%27% 10% 24% 26% 12% 0% 2010 2011 2012 2013 2014 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

  6. Slide 6: Equip Complete Drill costs

    $6,000 $5,000 473 $4,000 498 1,807 373 Equip $3,000 298 Complete 1,792 1,376 273 1,187 Drill $2,000 1,134 2,832 $1,000 2,088 2,134 1,563 1,808 $0 2010 2011 2012 2013 2014 TSX: YGR 6

  7. Slide 7: 2015 First Quarter Production and Netbacks

    2015 First Quarter Production 2,642 boe /d Liquid Content 44% Sales Price $ 30.08 /boe Royalty income 0.26 / boe Royalty expense (1.68) / boe Production costs (6.34) / boe Transportation costs (1.28) / boe Field Operating netback $ 21.05 / boe Commodity contract settlement 22.95 / boe Operating netb

  8. Slide 8: 2015 Q1 Industry Comparisons

    2015 Q1 Industry Comparisons Op Costs (with transportation) G&A Costs $25.00 $7.00 $6.00 $20.00 $5.00 $15.00 $4.00 $10.00 $3.00 rm ri vn $2.00 Wy $5.00 Ht ii! 1H $1.00 i}! Dik il it $0.00 ay $0.00 8 uy ley ley logy 19] rea -4 Royalty Percentage sco Netbacks yf 30% $45.00 Tra $40.00 rel 25% ijl $35.0

  9. Slide 9: 2015 Q1 Industry Comparisons

    2015 Q1 Industry Comparisons lyangarra Presources Itd. Cashflow Margin 1 1 I 1 60% 1 1 50% 1 1 40% H 30% ! 1 20% | 10% | 0% ! 1 I Cashflow Multiple 25.00 20.00 15.00 10.00 5.00 “1 THe ooo # ali [-4 ISI =I | a | TSX: YGR 1.00 | i 0.00 I $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 Debt/

  10. Slide 10: Long-term Value Creation

    Long-term Value Creation 400 200 ° -600 -800 -1,000 TSX: YGR [|p -200 -400 Retained Earnings ($ millions ) atl / 250% 150% 100% as 50% 0% P+P NPV10/Share Capital & Debt lyangarra Presources Itd. L GQ bee ee ew ee ee ee ee ee ee ee ee ee ee ee eee ee eee eee = oO

  11. Slide 11: Cashflow and Production

    50,000,000 4,000 40,000,000 (Cashflow) 3,000 (mboe) 30,000,000 2,000 20,000,000 10,000,000 1,000 Cashflow Production 0 0 2010 2011 2012 2013 2014 0.00006 Production per share 0.80 0.70 Cash Flow per Share 0.00005 0.60 0.00004 0.50 0.00003 0.40 0.30 0.00002 0.20 0.00001 0.10 - - 2010 2011 2012 2013 2

  12. Slide 12: P+P Reserves and Reserve Value

    P+P Reserves (mboe) Reserve Value PV10 ($ millions) 40,000 500 30,000 400 Oil 300 20,000 NGL's 200 10,000 Natural gas 100 0 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 P+P Reserves (mboe) Reserve Value PV10 ($ millions) 40,000 500 400 30,000 PROB 300 20,000 PUD 200 10,000 PDNP 100 PDP 0 0 20

  13. Slide 13: Central Alberta

    Central Alberta • Interest in 140 sections of land • 85 + horizontal wells drilled since 2010 • Focus Pembina • Cardium and Glauc plays Edmonton Willesden Green • Light oil Ferrier Rocky Mountain House Red Deer • High netback • Quick payouts Calgary TSX: TSX:YGR YGR 13

  14. Slide 14: Vertical production exists in all zones

    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 Glauconitic 20m Ellerslie 10m Rock Creek 15m Duvernay TSX: TSX:YGR YGR 14

  15. Slide 15: Cardium Show Map

    U P P E R G C A A R S D SY IU M UP PR T44 PE OS R P EC & TI LI LO VE QU W ER ID CA RI RD PR CH IU M OS PEC T IV GA E S UP PROSPECTIVE PE R CA HZ RD IUM OIL T43 OIL W LO IL W LE ER SD EN T42 G R C EE A R N D IU C M A R D IU PROSPEC M TIVE UPPE FI R EL C A D R H T41 DI Z U M GAS O PROSPECTIVE IL LOWER

  16. Slide 16: TSX: YGR

    30 29 28 27 26 25 30 29 28 27 26 25 27 26 25 30 29 28 27 26 25 30 29 28 27 26 25 30 29 28 27 26 25 30 29 28 27 26 25 ES 23 24 19 20 21 22 23 24 19 20 21 22 23 24 22 23 24 19 20 21 22 23 24 19 20 21 22 23 24 19 20 21 22 23 24 19 20 21 22 CI T43 15 14 13 18 17 16 15 14 13 18 17 16 15 14 13 17 16 15 14

  17. Slide 17: Duvernay Show Map

    T51 CNRL Vermilion T50 LIQUID RICH GAS WINDOW T49 Vermilion Vermilion Yangarra T48 Yangarra OIL DRY GAS Yangarra Apl O&G T47 Sinopec Daylight Sinopec Daylight CNRL Resourceful T46 Resourceful Penn West Resourceful Enerplus Resourceful Enerplus Enerplus Penn West T45 Enerplus ConocoPhillips Bellatrix

  18. Slide 18: TSX: YGR

    ConocoPhillips Bellatrix Sinopec Daylight T44 ConocoPhillips ConocoPhillips Encana Talisman Encana Encana T43 Encana Encana Encana Mosaic Encana Encana OIL T42 LIQUID RICH GAS WINDOW Encana Talisman Encana Encana Talisman Encana T41 Shell Talisman DRY GAS Shell Shell Shell Shell Talisman Shell Talis

  19. Slide 19: TSX: YGR

    R15 R14 R13 R12 R11 R10 R9 R8 R7 R6 R5 T52 T51 CNRL Vermilion T50 LIQUID RICH GAS WINDOW T49 Vermilion Vermilion Yangarra OIL T48 Yangarra DRY GAS Yangarra Apl O&G T47 Sinopec Daylight Sinopec Daylight T46 Penn West Enerplus Enerplus Enerplus Penn West T45 Enerplus ConocoPhillips Bellatrix TSX: YGR

  20. Slide 20: Significant amounts of oil produced over 30 years

    • Significant amounts of oil have been produced over the past 30 years from vertical wells • 10 to 20 million barrels of Original Oil in Place (OOIP) per section • Accumulated 45 gross (35 net) sections • Yangarra has 3 horizontal wells and 2 vertical wells in the SWS formation Yangarra Land TSX: YG

  21. Slide 21: Oil Hedges

    Oil Hedges * Assumes Yangarra specific heat value 2015: 300 bbl/d hedged at C$102.56 WTI/bbl 2015: 500 bbl/d hedged with a costless collar C$65.00 WTI/bbl and a ceiling of C$73.50 WTI/bbl 2015: 800 bbl/d of Edmonton par to WTI differential hedges at US$6.75/bbl 2016: 400 bbl/d hedged at C$76.10 WTI/

  22. Slide 22: Appendix

    Appendix TSX: YGR 22

  23. Slide 23: Acreage within the liquids/volatile oil fairway

    • Acreage within the liquids/volatile oil fairway • South Block (Willesden Green) YGR • 7 Net Sections NORTH • Net Pay ~ 36 m BLOCK • OGIP ranges from 70 to 100 BCF/sec • North Block (Pembina) • 54 Net Sections YGR • Net Pay ~ 20 to 24 m SOUTH BLOCK • OGIP ranges from 40 to 50 BCF/sec* *OGIP estimat

  24. Slide 24: YGR acreage is optimal with high average porosity

    YGR acreage is optimal with high average porosity > 6% YGR Acreage TSX: YGR 24

  25. Slide 25: Net Pay (YGR South Block)

    R7 R6 R5W5 Talisman 3-28-38-6W5 M SCL HZ 102 FERRIER 4-21-40-7 • Net Pay (YGR South SCL HZ FERRIER 3-21-40-7 T40 T40 Block) ~36 m • Southern Block is de- PARA WILLGR 9-25-39-6 risked by adjacent wells T39 T39 • Continuous Duvernay formation NUTECH WELL TALISMAN HZ FERRIER 3-28-38-6 T38 T38 NC STRACH

  26. Slide 26: Duvernay Net Pay on YGR acreage

    15-18-49-13W5 7-4 - 49-12W5 7-3-47-11W5 7-1-48-10W5 8-32-46-9W5 Vermillion Strat Test Vermillion HZ Offset (1977) Sinopec HZ Producer A at 10-28-48-12W5 Flowed 400 bbls ‘A 3350 3350 3100 3500 3100 ? ? 11-22 3400 3400 3150 3550 Dbvhl_lkB 3150 Dbvrhl_lk Dbvrhl_lk Dbvrhl_lk Approximate Hz well path Dbv

  27. Slide 27: 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 a number of risks and unce

  28. Slide 28: Boe conversion and 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 represent a value eq

  29. Slide 29: Yangarra Resources Ltd. contact

    Yangarra Resources Ltd. 1530, 715 – 5 Ave. SW Calgary, Alberta T2P 2X6 403-262-9558 TSX: YGR 29

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