Yangarra Resources Ltd. · TSX:YGR
Yangarra Resources — Investor Presentation (March 2011)
34 slides from Yangarra Resources's investor presentation, March 2011
Slide 1: Corporate Presentation
Corporate Presentation March 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: Introducing Yangarra
Introducing Yangarra Publicly listed junior oil and gas company TSX-V: YGR Shares Outstanding Basic 103.8 million Options/Warrants (Weighted avg. price $0.57) 19.4 million Fully Diluted 123.2 million Management and Director Ownership Basic 20% Fully Diluted 28% Market Capitalization (Based on $0.75
Slide 5: 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 6: Company Highlights
Company Highlights Significant 2011 Capital program • $50 million drilling budget for 2011- 31 gross (13.7 net) wells Expanding Drilling Inventory • Total of 123 gross (70.2 net) drilling locations Significant Override in place • 15% gross S/S override on 11 sections of existing Glauconite and Cardi
Slide 7: Company History
Company History Date Event Mar 1, 2010 Purchased 15% gross S/S override on 11 sections Mar 10, 2010 $6 million equity raise ($0.375) Mar 17, 2010 Drilled initial Yangarra Glauconite well May 26, 2010 $2.1 million flow-through raise ($0.55) Jun 28, 2010 $1.9 million raise ($0.60 FT & $0.56 equity) Oc
Slide 8: 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 9: 2010 Reserve Report Summary
2010 Reserve Report Summary • NPV10 Proved plus Probable of $80.7 million • Increase of 113% from 2009 • Seaton-Jordan & Associates Ltd undeveloped land value of $10.4 million • Proved plus Probable reserves of 5.054 million barrels • Increase of 78% from 2009 • Replaced 2010 production by 723% on a
Slide 10: Pictures
Pictures Testing 13-2-41-7W5 Testing Yangarra’s first horizontal Glauconite well 6-3-41-7W5 10
Slide 11: Core Areas (Alberta, Canada)
Core Areas (Alberta, Canada) Willesden Green / Ferrier • Interest in 45+ Sections of land • 28,000+ acres • Multi-zone potential • 10 horizontal wells drilled • Focus area for 2011 capital budget Jaslan Medicine Hat Edmonton • Interest in 123 sections of land Willesden Green/Ferrier • 40+ producing
Slide 12: Multi Zone Potential
Multi Zone Potential Cardium 5m thick Second White Specks Colorado Group 30m thick 650m thick Viking 5m thick Glauconitic 20m thick Ellerslie 10m thick Rock Creek 15m thick 12
Slide 13: Fracturing Technology
Fracturing Technology Rock Seal Ball Port 13
Slide 14: 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 14
Slide 15: Drilling Summary
Drilling Summary 2010 Drilling Location HZ Length Fracturing Working Interest IP Length Production Program (w.i.) 06-03-41-7W5 Glauconite 710 m 8 stages 100% w.i. IP 30 602 boe/d (operated) 200 tonne 09-20-41-7W5 Cardium 699 m 5 stages 68.15% w.i. IP 30 85 boe/d (non-operated) 150 tonne plus 15% ove
Slide 16: 2011 Budget Highlights
2011 Budget Highlights $50 million capital budget for 2011 • 21 gross (11.1 net) operated wells • 10 gross (2.6 net) non-operated wells • $26 million spent in 2010 (92% increase in 2011) • Capital allocated for infrastructure and land/asset purchases • Drilling in several different zones at Willesde
Slide 17: Glauconite - Willesden Green/Ferrier
Glauconite - Willesden Green/Ferrier 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
Slide 18: Glauconite - Willesden Green/Ferrier
Glauconite - Willesden Green/Ferrier R8 R7 R6W5 UC E F F F G F F U VUV F G F C 27 26 25 30 29 28 I E 27 26 25 30 29 G 28 27 F 26 J Yangarra Land F UC F U G E G G F A C E F G E F F V U F K E J G E F C F J C K G Hoadley F G U UU F F U 23 F A 22 23 24 19 20 21 22 23 24 19 20 21 22 U G F I AC Glauconite
Slide 19: Glauconite – Generic Type Curves & Economics
Glauconite – Generic Type Curves & Economics Note: Taken from Bonavista Energy Trust’s corporate presentation 19
Slide 20: Cardium - Willesden Green/Ferrier
Cardium - Willesden Green/Ferrier R10 R9 R8 R7 R6 R5 R4W5 E E E I E JE E E • 29 locations (12.6 net) T43 1 36 6 E 31 E E V E E CE E EU IE1 E E E E EEBellatrix A V E EE J EE E EVV E EEE E 36 6 IIE E13-19 LE E412107 IP38 E I EE 31 EEBOPD BOPD E E E EE E I I E 1 E I E 36 I IJ 6 I 31 J I J E J J E E EEI
Slide 21: Cardium – Generic Type Curves & Economics
Cardium – Generic Type Curves & Economics Note: Taken from Bonavista Energy Trust’s corporate presentation 21
Slide 22: Summary
Summary • Multi zone potential in the Willesden Green/Ferrier area • Significant 2011 Capital program • Expanding Drilling Inventory • Significant Override in place • Strong net asset value • High Netbacks due to liquids-rich gas 22
Slide 23: Appendix
yangarraPresources Itd. Appendix
Slide 24: Reserve Tables
Reserve Tables Company Gross and Net Oil and Gas Reserves (based on forecast price and costs) Light and Medium Natural Gas Natural Gas Barrels of oil Oil Liquids equivalent Reserves Category Wi CoShae WI. Co.Share Wi. CoShae WI. Co.Share Gross Net Gross Net Gross Net Gross Net (Mbbl) = (Mbbl) ~—s(Mb
Slide 25: Reserve Tables
Reserve Tables Company Gross and Net Oil and Gas Reserves (based on forecast price and costs) Light and Medium Natural Gas Natural Gas Barrels of oil Oil Liquids equivalent Reserves Category Wi. CoShae Wi CoShare Wi. CoShae Wi. Co.Share Gross Net Gross Net Gross Net Gross Net (Mbbl)— (Mbbl)—(Mbbl)_—
Slide 26: Finding and Development Costs
Finding and Development Costs 26
Slide 27: Net Asset Value
Net Asset Value Net Asset Value (“NAV”) As at December 31,2010 ($ millions) Present Value of Proved plus Probable Reserves, before tax $80.7 (discounted at 10%) Undeveloped land 10.4 Working capital deficiency (11.2) Net Asset Value $79.9 Common shares outstanding, basic 79.7 Net asset value per sha
Slide 28: Glauconite Well Analogy
Glauconite Well Analogy 00/06-02-041-07W5/0 00/12-26-041-05W5/0 KB: 1032.5 m RR: 1980-01-27 KB: 987.3 m RR: 1979-09-15 ProdForm: FormTD: PEKISKO ProdForm: COLRAD,CARDSD FormTD: BANFF Mode: Abnd Fluid: N/A Mode: Pump Fluid: Gas POCO ET AL WILLGR 6-2-41-7 AMOCO WILLGR 12-26-41-5 20665.0m to next well
Slide 29: Cardium Well Analogy
Cardium Well Analogy 00/13-20-041-07W5/2 00/12-29-047-02W5/0 KB: 972.5 m RR: 2006-06-17 KB: 912.6 m RR: 2000-08-18 ProdForm: CARDSD FormTD: NORD ProdForm: FormTD: ELLERSL Mode: Pump Fluid: Oil Mode: Abd & Re Fluid: N/A BIRCHILL WILLGR 13-20-41-7 EXORO ENERGY PEMBINA 12-29-47-2 76653.4m to next well
Slide 30: Cardium Well Analogy – Section 36-37-8W5
Cardium Well Analogy – Section 36-37-8W5 00/10-36-037-08W5/0 00/16-35-037-07W5/0 KB: 1070.7 m RR: 1980-09-25 KB: 1027.0 m RR: 2006-01-11 TD: 2358.0 m [TVD] FormTD: CARD UPPER TD: 2255.0 m [TVD] FormTD: BLACKSTN Mode: Flow Fluid: Oil Mode: Pump Fluid: Oil GRIFFON FERRIER 10-36-37-8 CREW FERRIER 16-35
Slide 31: Medicine Hat
Medicine Hat • 90 sections: − 100% working interest • 4.0 mmcf/d plant: − 100% ownership • Current production: − 800 mcf/d from vertical wells Yangarra Land Yangarra Wells 31
Slide 32: Jaslan
Jaslan • Six sections − 37.5% working interest − Five wells drilled at 37.5% • 15 sections − 100% working interest − Five wells drilled at 100% • 2.9 Mmcf/d compressor station − 45% ownership • 100% gas production • Three Wabamun pools to develop • Mannville secondary targets present • 1.5 Mmcf/d cu
Slide 33: 33
33
Slide 34: Contact Information
Contact Information Yangarra Resources Ltd. 1530, 715 – 5 Ave. SW Calgary, Alberta T2P 2X6 403-262-9558 34
Yangarra Resources — Investor Presentation (March 2011) on 6ix