Yangarra Resources Ltd. · TSX:YGR
Yangarra Resources — Investor Presentation (November 2012)
24 slides from Yangarra Resources's investor presentation, November 2012
Slide 1: Corporate Presentation November 2012
Corporate Presentation November 2012 TSX-V: YGR
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: Corporate Snapshot
Corporate Snapshot Publicly listed junior oil and gas company TSX-V: YGR Shares Outstanding Basic 122 million Options/Warrants (weighted average $0.59) 12 million Fully Diluted 134 million Insider Ownership Basic 21% Fully Diluted 28% Market Capitalization (at $0.37/share) $45 million Net Debt Sept
Slide 5: Experienced Management Team
Experienced Management Team Management Team Dan Helman, P.Eng., VP, Exploitation • 28 years of diversified oil and gas engineering experience Jim Evaskevich, President & CEO Including reservoir in-depth evaluation and optimization • 30+ years extensive executive experience with strong operations bac
Slide 6: Committed Management Team
Committed Management Team Insider Ownership, Basic Insider Ownership, Fully Diluted 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% YGR YGR • Substantial insider wealth at stake • Strong motivation for management to perform • Delivers clear alignment with shareholder interests 6 Tables based on intern
Slide 7: 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 8: Third Quarter Highlights
Third Quarter Highlights • Production of 1,800 boe/d (1,986 boe/d YTD) • A 44% increase from the second quarter of 2011 • 37% of production is Oil and NGL’s • Significant behind pipe or shut-in on volumes • $4.6 million of revenue • $2.8 million of cash flow • Operating netback of $22.70/boe • Opera
Slide 9: Focus on Value Creation
Focus on Value Creation 2,500 12,000 2,000 10,000 8,000 1,500 (boe/d) (mboe) 6,000 1,000 4,000 500 2,000 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 Production Reserves Production per share growth Reserves per share growth 2010 3% 2010 0% 2011 55% 2011
Slide 10: Multi-Zone Exposure
Multi-Zone Exposure Colorado Group Cardium 650m thick 5m Second White Specks • Vertical production 30m exists in all zones Viking 5m • All zones meet the criteria for horizontal drilling • 2012 capital budget Glauconitic will focus on the 20m Ellerslie Cardium, Viking and 10m Rock Creek SWS 15m Duve
Slide 11: Cardium/Glauconite Competitive Advantage
Cardium/Glauconite Competitive Advantage Breakeven comparison to other North American natural gas plays C$/mcf mcf 11 Source: Peters & Co. Limited based on current strip commodity pricing
Slide 12: Glauconite Formation
Glauconite Formation R8 R7 R6 R5W5 CEU EA UU UFC Hoadley Glauconite Barrier Island Complex: T42 G I E 8 F F 9 F V F 10 F 11 UE U F F UU F 12 C F C U 7 K E 8 FU F L G UF 9 F CU 10 I EUU CE EC 11 E A G E A AE E G 12 G E AE F G E A U 7 F C G 8 F9 F E CE E E 10 E 11 FF F U F F I A F 12 U F FUC F F FF FF
Slide 13: Cardium Formation
Cardium Formation R10 R9 R8 R7 R6 R5 R4W5 F V G A F F F L F E E FU I V G E E E K F F I I FE U G G Cardium complex: T44 E GV G 1 AV G 6 A V G V G E E J J1 EU 6 S E S E E E 31I JEU SII U E E UK E E E I U J V J 1 E E36 E 31 E 6 E F E E E E 1 6 1 6 G A G V E V G G E E 1 T44 36 31 G E 36 VS IE S SE EEI E
Slide 14: Cardium & Glauconite Type Curves
Cardium & Glauconite Type Curves 14
Slide 15: Developmental Resource Plays
Developmental Resource Plays Net Net Booked in 2012 Inventory Type Locations reserve report Drilling Cardium Light Oil 35 6 4-5 Glauconite Liquids Rich 25 6 3-4 Total 60 12 • Yangarra has drilled 40+ horizontal wells into these plays • 5+ years of drilling inventory in Cardium and Glauconite • Signi
Slide 16: Second White Specks
Second White Specks R11 R10 R9 R8 R7 R6 R5 R4 R3 R2W5 • Significant amounts of oil have T44 5 32 4 33 3 34 2 35 1 36 6 31 5 32 4 33 3 34 2 35 1 36 6 31 5 32 4 33 3 34 2 35 36 1 6 31 5 32 4 33 3 34 2 35 FV 1 36 6 31 5 32 4 33 3 34 2 35 1 36 6 31 5 32 4 33 3 34 2 35 1 36 6 31 5 32 4 33 3 34 2 35 1 36
Slide 17: Duvernay
Duvernay • Yangarra owns 72 Gross (70 net) sections of Duvernay land North Block • Land tenure of typically 4 years before expiry, which can be extended by 5 years with minimal drilling • Estimated to contain 80-100 bcf per section with liquid content estimated to be greater than 100 bbls/mmcf • Cur
Slide 18: Duvernay - Exposure
Duvernay - Exposure • Yangarra is highly leveraged to the Duvernay play in terms of acres to Enterprise Value 18
Slide 19: Emerging Resource Plays
Emerging Resource Plays Net Net Potential Area Sections Acres Locations Second White Specks Light Oil 29 18,560 100-175 Duvernay – South Liquids Rich 5 2,983 20-40 Duvernay – North Liquids Rich 55 34,765 220-440 Other Duvernay 10 6,400 N/A Total 99 62,708 • 10% of the 2012 capital budget will be all
Slide 20: Low Cost Operator
Low Cost Operator Q2 2012 Operating costs/boe Q2 2012 G&A/boe 25.00 10.00 20.00 8.00 15.00 6.00 10.00 4.00 5.00 2.00 0.00 0.00 YGR YGR • Management team with strong operations background • Maintain low operating costs through operational presence and control over infrastructure • Central Alberta lan
Slide 21: Financial Discipline
Financial Discipline Q2 2012 Debt to Cash Flow Q2 2012 Debt/Equity 10.00 1.40 9.00 1.20 8.00 7.00 1.00 6.00 0.80 5.00 4.00 0.60 3.00 0.40 2.00 1.00 0.20 0.00 0.00 YGR YGR • Focus on reducing costs and maximizing profit • Lower natural gas prices, higher WTI to Edmonton par spreads and lower NGL pric
Slide 22: Risk Management Program
Risk Management Program 2012 (500 bbl/d hedged) • 200 bbl/d @ $97.00 WTI/CAD for 2012 • 100 bbl/d @ $99.00 WTI/CAD for 2012 Average: $97.25 • 100 bbl/d @ $93.25 WTI/CAD for 2012 • 100 bbl/d @ $100.00 WTI/CAD for 2012 2013 (700 bbl/d hedged) • 200 bbl/d @ $98.00 WTI/CAD for 2013 • 100 bbl/d @ $97.50
Slide 23: Key Corporate Strategies
Key Corporate Strategies • Maximize netbacks in the current price environment by focusing on oil targets • Minimize drilling costs by keeping internal control over the drilling and completions • Maintain low operating costs through operational presence and cost efficiencies • Continue to grow drilli
Slide 24: Yangarra Resources Ltd.
Yangarra Resources Ltd. 1530, 715 – 5 Ave. SW Calgary, Alberta T2P 2X6 403-262-9558 24
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