Slide 1: Corporate Presentation May 2017
Corporate Presentation May 2017 TSX: TSX:YGR YGR
Slide 2: Corporate Snapshot
Corporate Snapshot Capitalization Reserves and Locations (2) Ticker TSX: YGR NPV10 December 31, 2016 mmboe ($mm) Shares Outstanding (mm) Proved Developed 7.9 $139.1 Basic 80.6 Total Proved 36.5 $489.6 Options (weighted avg. price $1.50) 7.8 2P 60.6 $734.5 Fully Diluted 88.4 Total Cardium Locations (
Slide 3: People
People 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
Slide 4: Why Own Yangarra?
Why Own Yangarra? • Top Decile Full Cycle rates of return • Low-cost operator, high netbacks • 2017 Cash costs totaled $13.08/boe • Operating costs (including transportation) of $7.93/boe • Royalties of $3.05/boe (8% of revenue) • G&A costs of $0.51/boe • Finance and interest costs of $1.59/boe • Op
Slide 5: Full Cycle Returns
Full Cycle Returns • Capital allocation is determined based on narrowing the gap between half cycle and full cycle returns 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 the wells (i.e. la
Slide 6: Cardium Drilling Inventory
Cardium Drilling Inventory (1) Drilling Locations (1-mile laterals) Proportionate (gross locations) • 752 gross (522 net) future 1-mile Cardium future drilling locations (1) • Opportunity to drill extended reach wells 1) Management estimate is based on an estimate prepared by a non-independent quali
Slide 7: Cardium Formation Sections of Cardium
Cardium Formation 119 (89 net) Sections of Cardium #6 - YGR 102/8-14-41-6W5 – 2.0 mile 101 stages – 1,520 tons On Prod: February 3, 2017 Clean-up phase (Day 1-20): 217 boe/d (93% liquids) #7 - YGR 102/16-15-44-10W5 – 2.0 mile #2 - YGR 100/1-14-41-6W5 – 2.0 mile Production phase (Day 21-35): 534 boe/
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 8
Slide 9: Deeper Drill Path
Deeper Drill Path OOIP/section 5,157 Mstb OBOEIP/section 14,323 Mbbl 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 9
Slide 10: 2017 Capital Plan
2017 Capital Plan CAPEX budget for 2017 $50.0 million Budget focused on Cardium Wells -5 wells in the first quarter and 10 wells in the second half Funded with cash flow and the existing credit facilities 2017 Guidance Production (boe/d) Annual Average 4,500 – 5,000 boe/d Cash flow from operations $
Slide 11: 2016 F&D and Recycle Ratios
2016 F&D and Recycle Ratios Finding and Development Recycle Ratios • Consistent improvement in, and Reserves (1) continued focus on, F&D costs and NPV10 BT Volumes recycle ratios • In Yangarra’s view Probable and proven Cardium locations have a similar chance of success • Reserve Life Index (“RLI”)
Slide 12: Duvernay Formation
Duvernay Formation 15-19-39-6W5 (1.5 Mile) IP 20 - 700 boe/d 52% liquids (81 stages & 1,744 tons of sand) TSX: YGR 12
Slide 13: Risk Management Program
Risk Management Program Oil Hedges 2017 200 bbl/d collar C$65.00 WTI/bbl and a ceiling of C$75.00 WTI/bbl (2017) 100 bbl/d at C$70.00 WTI/bbl (2017) 200 bbl/d at C$71.00 WTI/bbl (Feb – Jun 2017) 200 bbl/d at C$69.25 WTI/bbl (Mar – Jul 2017) 300 bbl/d at C$67.00 WTI/bbl (Apr – Jun 2017) 500 bbl/d at
Slide 14: 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. Paradigm
Slide 15: 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 16: 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 17: Yangarra Resources Ltd. contact
Yangarra Resources Ltd. 1530, 715 – 5 Ave. SW Calgary, Alberta T2P 2X6 403-262-9558 TSX: YGR 17