Yangarra Resources Ltd. · TSX:YGR
Yangarra Resources — Investor Presentation (January 2012)
23 slides from Yangarra Resources's investor presentation, January 2012
Slide 1: Corporate Presentation
Corporate Presentation January 2012 TSX-V: YGR www.yangarra.ca
Slide 2: 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 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: Share Structure
Share Structure Publicly listed junior oil and gas company TSX-V: YGR Shares Outstanding Basic 116.3 million Options/Warrants (weighted average $0.60) 20.8 million Fully Diluted 137.1 million Management and Director Ownership Basic 20% Fully Diluted 27% Market Capitalization (as at January 24, 2012)
Slide 5: People
People Management Team Jim Evaskevich, President & CEO James Glessing, CA, CFO • 30 years extensive executive experience with • Executive and financial experience as CFO with strong operations background North Peace Energy Corp Dan Helman, P.Eng., VP, Exploitation • Controller at BlackRock Ventures,
Slide 6: Core Areas (Alberta, Canada)
Core Areas (Alberta, Canada) Central Alberta • Interest in 140 sections of land • 40+ producing wells • Focus area for remainder of 2012 capital budget Medicine Hat Jaslan • Interest in 120 sections of land • Currently shut-in Edmonton Jaslan Central Alberta Rocky Mountain House • Interest in 32 sec
Slide 7: Production (6:1) & Net backs ($/boe)
Production (6:1) & Net backs ($/boe) 2000 $38.89 45 1800 $39.12 $37.94 25 1600 $28.83 $26.36 1400 $20.06 $13.64 5 1200 boe/d /d 1000 -15 Oil and NGL's 800 Gas -35 600 Netback/boe 400 -55 200 0 -75 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2010 2010 2010 2011 2011 2011 2011 est 7
Slide 8: Summary
Summary • Drilled 35 gross (19.4 net) wells in Central Alberta • $40 million credit facility ($14 million un-used as at Jan 24, 2012) • Reserve Report • 2011 reserve report details will be release early March • $5 million of cash flow and $5 million of net income in Q3 • $0.04/share ($0.17/share ann
Slide 9: 2012 Plan
2012 Plan CAPEX budget for 2012 $35 million Drilling (Focused on Glauconite & Cardium) $30 million Land, infrastructure and other capital items $5 million Budget is fully funded with cash flow and the current credit facility 2012 Guidance Production (boe/d) Annual Average 2,000 – 2,500 Exit 2,750 Ca
Slide 10: Multi Zone Exposure – Central Alberta Land Holdings
Multi Zone Exposure – Central Alberta Land Holdings 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 • 2012 capital budget Glauconitic will focus on the 20m Ellerslie Cardium and 10m
Slide 11: Impact of Liquids-Rich Gas
Impact of Liquids-Rich Gas $8.00 Condensate Value $7.43/mcf Butane Value $7.00 $1.62 Propane Value $6.00 Heating Value Adjust Dry Gas $5.00 $1.60 $/mcf $4.00 $1.12 $3.00 $2.50/GJ $0.45 $2.00 $1.00 $0.00 Glauconite 11
Slide 12: Exposure & Deal Flow
Exposure & Deal Flow • Exposure to plays such as the Hoadley Glauconite is very significant for Yangarra • Focus of the 2012 budget will be Glauconite and Cardium zones • Yangarra is still small enough to do the deals that larger players cannot afford to allocate resources to • Added 92 gross (57.1
Slide 13: Glauconite
Glauconite R8 R7 R6 R5W5 VF F F F E F E F G U F FU F G V F VA UF Hoadley Glauconite Barrier Island Complex FA GE F UA G UC FC J F C F F F U K G E G G I E F G F G F E U A E F C F F CFVU G F EF F FV G GG G G GF GI F V F V F F FF FFF A F F F F F FU F E J G E FU F F FA G F F L G C F JC G K F G U U I U F
Slide 14: Glauconite (Generic Type Curves & Economics)
Glauconite (Generic Type Curves & Economics) 14 *Note: Taken from Bonavista Energy’s corporate presentation
Slide 15: Cardium
Cardium E EF I F F LF F E E E FF F E I FE J E E F E F E E FC J E JE F C E I EI J E E F A E E I IE II E E E E E F E IE E EE I EE F E F C F E C F J Cardium complex: AVG IP90 DLY CAL OIL 163 bopd (5 wells) F AVG IP3 DLY CAL OIL F FF A F E F F C IF F E F F AA E JI I EA E A E E E J E I D E E EEI J J E CF
Slide 16: Cardium (Generic Type Curves & Economics)
Cardium (Generic Type Curves & Economics) 16 *Note: Taken from Bonavista Energy’s corporate presentation
Slide 17: 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 E L G I F EC F J G J FF F GC G F F J Cumulative in F F J Cumulative in FG Generating Trend L Silty G CF area CUMULATIVE IN718F J F F F Silty F area SILTY G CUMULATIVE IN AREA 200 2 T42 SILTY AREA 718 MSTB Oil MSTB Oil MMSTB OIL C MSTB
Slide 18: Duvernay
Duvernay Duvernay: • 72 Gross (70 net) sections of land • Land tenure of typically 4 years before expiry, which can be extended by 5 years with minimal drilling • Yangarra is in a position to let industry de-risk these plays. • Yangarra will not expose any capital to the play in 2012 budget Yangarra
Slide 19: Peer Comparisons (Q3 per boe metrics)
Peer Comparisons (Q3 per boe metrics) $52.84 $38.59 High $38.98 Average $33.80 $32.29 7.45 $24.37 Low $14.80 $14.01 $14.80 $2.13 $5.47 $6.09 $1.80 $1.23 Field Netback/boe Field Netback/boe Op Costs/boe G&A/boe (Adjusted for Oil/Gas Split) 19 Based on internal analysis of 15 peer companies
Slide 20: Peer Comparisons (Q3 Debt Ratios)
Peer Comparisons (Q3 Debt Ratios) 0.89 5.13 High Average 0.86 0.18 Low 1.90 0.32 0.31 0.00 Debt to Cashflow Debt to Equity 20 Based on internal analysis of 15 peer companies
Slide 21: Hedging Program
Hedging Program 2012 (700 bbl/d hedged) • 200 bbl/d @ $97.00 WTI/CAD for 2012 • 100 bbl/d @ $99.00 WTI/CAD for 2012 • 200 bbl/d @ $90.00 WTI/CAD for 2012 • 100 bbl/d @ $93.25 WTI/CAD for 2012 • 100 bbl/d @ $100.00 WTI/CAD for 2012 2013 (600 bbl/d hedged) • 200 bbl/d @ $98.00 WTI/CAD for 2013 • 100 b
Slide 22: 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 23: Contact Information
Contact Information Yangarra Resources Ltd. 1530, 715 – 5 Ave. SW Calgary, Alberta T2P 2X6 403-262-9558 23
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