Yangarra Resources Ltd. · TSX:YGR
Yangarra Resources — Investor Presentation (August 2018)
21 slides from Yangarra Resources's investor presentation, August 2018
Slide 1: Corporate Presentation
Corporate Presentation August 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, 2017 mmboe ($mm) Share Ratio(4) Shares Outstanding (mm) Proved Developed 12.0 $204 $1.38 2.1x Basic 85.3 Total Proved 55.9 $722 $7.18 2.7x Options (weighted avg. price $4.46) 7.8 Prove
Slide 3: The Team
The Team Management Team Jim Evaskevich, President & CEO Randall Faminow, VP, Land ➢ 30+ years extensive executive experience with strong operations ➢ 30+ years of experience in all aspects of oil and gas land work, 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 ➢ 2018 second quarter cash costs totaled $13.57/boe • Operating costs (including transportation) of $7.72/boe • Royalties of $3.90/boe (9% of revenue) • G&A costs of $0.56
Slide 5: Full Cycle Returns
Full Cycle Returns Half Cycle IRR ⁽¹⁾ Full Cycle IRR ⁽²⁾ 140% 120% 100% 80% IRR 131% 60% 105% 86% 40% 79% 80% 67% 65% 20% 41% 34% 31% 33% 31% 24% 26% 27% 12% 0% 2010 2011 2012 2013 2014 2015 2016 2017 1. Half cycle IRR is based on actual drilling and completion costs, production to date and P+P rese
Slide 6: 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 ➢ 913 gross (716 net) future 1-mile Cardium future drilling locations (1) • Continued to grow inventory by strategically picking u
Slide 7: Cardium Formation
Cardium Formation a on A | | Tag 43 U oN oe ica mit Ta2 a Ta1 os T40 i yet T39 + “th bl t 138 pe an 137 7 R12 R11 R10 RQ R8 R7 R6 R5 R4 R3 R2W5
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 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 11: Production Growth
Production Growth Production Per Share Production Vintage 8000 6x 14,000 200 190 7000 12,000 180 5x Net Debt / Trailing Cash Flow 170 Production / MM Shares 6000 # of Producing Wells 10,000 Production (boe/d) 160 4x 5000 150 8,000 140 4000 3x 130 6,000 3000 120 2x 110 4,000 2000 100 1x 2,000 90 1000
Slide 12: Reserves Growth
Reserves Growth Reserves Per Share (boe per share) (2P) Reserves Profile 1.20 Volumes (boe) NPV10 ($) 1.08 1.00 2P Reserves / share Nat. 0.80 0.76 Gas 0.65 9% 0.60 0.60 Nat. Gas Oil/ 0.36 Oil/ 0.40 0.31 53% NGL's 0.22 47% NGL’s 0.20 91% - 2011 2012 2013 2014 2015 2016 2017 Gross Reserves (mmboe) 100
Slide 13: F&D and Recycle Ratios
F&D and Recycle Ratios Finding and Development Recycle Ratio $30 30 7x Finding & Development Costs* ($ / boe) 2P Reserve Additions (mmboe) $25 25 6x 5x Recycle Ratio* (x) $20 20 4x $15 15 3x $10 10 2x $5 5 1x $0 0 0x 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017 1P F&D / boe
Slide 14: 2018 Capital Plan
2018 Capital Plan CAPEX budget for 2018 $120.0 million ➢ 30 wells (45 one-mile equivalents) ➢ 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 operations $80 – 90 million Y
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 US$55.00 WTI/bbl and a ceiling of US$64.40 WTI/bbl (Jul – Dec 2018) 300 bbl/d at C$71.60 WTI/bbl (2018) 600 bbl/d at C$75.40 WTI/bbl (Jul – Dec 2018) 300 bbl/d at C$76.00
Slide 17: Analyst Coverage
Analyst Coverage Acumen Capital Finance Partners Limited Industrial Alliance Securities Inc. Trevor Reynolds Michael Charlton Oil and Gas Research Analyst Research Analyst - Oil & Gas treynolds@acumencapital.com mcharlton@mgisecurities.com (403) 410-6842 (403) 705-4978 AltaCorp Capital Inc. Laurenti
Slide 18: Forward Looking Statements
Forward Looking Statements This presentation contains a summary of management's assessment of results and should be read in conjunction with the Consolidated Financial Statements and related Management's Discussion and Analysis for the quarter ended March 31, 2018, as filed on the SEDAR profile of Y
Slide 19: Forward Looking Statements (cont.)
Forward Looking Statements (cont.) The forward-looking statements contained in this presentation are made as of the date on the front page and the Company assumes no obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, fut
Slide 20: Non-GAAP Measures
Non-GAAP Measures This presentation contains references to measures used in the oil and natural gas industry such as “netback”, “net debt” and “cash flow”. These measures do not have standardized meanings prescribed by International Financial Reporting Standards (“IFRS”) and therefore should not be
Slide 21: 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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