january 2018 - · pdf filetsx: ygr 3 randall faminow, vp, land 30+ years of experience in all...

TSX: YGRTSX: YGR
Corporate Presentation
January 2018

2TSX: YGR
1) Price as at January 12, 2018
Capitalization Reserves and Locations (2)
Ticker TSX: YGR
Shares Outstanding (mm)
Basic 81.4
Options (weighted avg. price $1.85) 7.9
Fully Diluted 89.3
Market Cap ($mm) (at $5.16 / share)(1) $420
Q4 2017 Net Debt ($mm) (unaudited) $ 95
($120mm credit facility)
Enterprise Value ($mm) $515
Insider Ownership
Basic 14%
Fully Diluted 21%
2) Reserves effective as at December 31, 2016 based on the reserve report prepared by Deloitte LLP,
independent petroleum engineers (the Reserves Report)
3) NAV = NPV10 Reserve Value less Net Debt and excludes undeveloped land value
4) As at December 31, 2016
5) Net Value per Location calculated as (Current Enterprise Value - PDP Reserves value at December
31, 2016) / Total and Booked net locations, respectively
December 31, 2016 mmboe
NPV10
($mm)
NAV(3) / FD
Share
Recycle
Ratio(4)
Proved Developed 7.9 $139.1 $0.70 2.4x
Total Proved 36.5 $489.6 $4.68 3.4x
Proved + Probable 60.6 $734.5 $7.47 3.7x
Locations as at December 31, 2017
Based on 1-mile Gross Net
Booked Cardium Locations 214 150
Total Cardium Locations 940 740
Corporate Snapshot
Majority of reserves bookings based on old well path; last
well program helped de-risk / delineate the acreage
Probabilistic risk vs. reserves risk now
Highly motivated management and board with insiders
owning 14% of the basic shares and 21% of the fully
diluted shares

3TSX: YGR
Randall Faminow, VP, Land 30+ years of experience in all aspects of oil and gas land work,
including negotiation, acquisitions and divestments, contracts
and mergers
James Glessing, CA, CFO 17+ years oil and gas accounting experience
Executive and financial experience as CFO with North Peace
Energy Corp
Controller at BlackRock Ventures,
Canadian Natural Resources, Shell and Deloitte
Board of Directors
Management Team
Neil Mackenzie Director of various public companies, including Canyon
Technical Services
Currently a partner in Blackstone Fluids, an oil and gas drilling
fluids company
Ted Morton A former Canadian politician and cabinet minister in the Alberta
government
Has held various positions in the Alberta Government including
Minister of Energy (2011-2012), Minister of Finance and
Enterprise (2010-2011), and Minster of Sustainable Resources
(2006-2010)
Gordon Bowerman Chairman
President of Cove Resources Ltd
Founder of several successful private and public oil and gas
companies
Robert Weir President of Weir Resource Management Ltd
Jim Evaskevich President and CEO of Yangarra Resources Ltd
The Team
Jim Evaskevich, President & CEO 30+ years extensive executive experience with strong
operations background
Lorne Simpson B.Sc., C.E.T., VP, Operations 30+ years experience in the industry
Supervisor, Drilling Ops with PetroBakken Energy Ltd.
Engineered, drilled or completed 250 HZ Cardium wells, 200 HZ
Bakken wells, 2 HZ Duvernay wells, 25 HZ Montney wells, and
dozens of Blue Sky, Viking, SWS, Glauc, and Rock Creek HZ
wells

4TSX: YGR
Top Decile Full Cycle rates of return
Central Alberta Cardium formation focus
Low-cost operator, high netbacks
Q3 2017 Cash costs totaled $10.74/boe
Operating costs (including transportation) of $6.86/boe
Royalties of $2.43/boe (8% of revenue)
G&A costs of $0.74/boe
Finance and interest costs of $0.71/boe
Breakeven pricing, including reserve replacement of $20.15/boe
Operating margins were 80% and cash flow margins were 76%
2016 F&D costs of $9.41/boe
Low-cost philosophy, not just a result of current low commodity prices
Consistent, low risk Cardium economics
Potential Duvernay upside
Why Own Yangarra?

5TSX: YGR
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. land, G&G, infrastructure)

6TSX: YGR
Reserves Per Share (boe per share) (2P)
Gross Reserves (mmboe)
Reserves GrowthReserves Profile
Oil/NGL's47%
Nat. Gas53%
Volumes (boe)
Oil/ NGL's82%
Nat.Gas18%
NPV10 ($)
8.712.5
17.5
37.440.6
60.6
0
10
20
30
40
50
60
70
2011 2012 2013 2014 2015 2016
Re
se
rves
(mm
bo
e)
1P Reserves 2P Reserves
$0.22
$0.31 $0.36
$0.65 $0.60
$0.76
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
2011 2012 2013 2014 2015 2016
2P
Reserv
es /
sh
are

7TSX: YGR
PDP13%
PUD48%
PROB39%
Consistent improvement in, and continued focus
on, F&D costs and recycle ratios
Management estimates proven and probable
Cardium locations have a similar chance of
success
Reserve Life Index (RLI)
37 years with one rig
18 years with two rigs
12 years with three rigs
PDP19%
PUD48%
2P33%
Finding and Development
NPV10 BT Volumes
Reserves(1)
2P Reserves: 60.6 mmboe2P NPV10: $734.5 million
1. Reserves effective as at December 31, 2016 based on the Reserves Report
F&D and Recycle RatiosRecycle Ratio vs Added Reserve Volumes
0
5
10
15
20
25
30
$0
$5
$10
$15
$20
$25
$30
2011 2012 2013 2014 2015 2016
2P
Re
se
rve A
ddit
ion
s (m
mb
oe)
Fin
din
g &
De
ve
lop
men
t Co
sts
* ($
/ b
oe
)
1P F&D / boe 2P F&D / boe 2P Net Reserve Adds
*Includes changes in future capital
$0
$20
$40
$60
$80
$100
$120
$140
0x
1x
2x
3x
4x
5x
6x
7x
2011 2012 2013 2014 2015 2016
WT
I ($
US
) / b
bl
Re
cycle
Rati
o* (x
)
1P Recycle Ratio 2P Recycle Ratio WTI (USD) / bbl
*Excludes realized gains and losses on hedging

Upper Cardium (5-15% Porosity)
Lower Cardium (3-6% Porosity)
Bioturbated Zone (20-80% Sand)
2.5-4.0m
1.5-3.0m
3.0-7.0m
Old
Well Path
New
Well Path
Old Frac PlaneNew Frac Plane
Upper Cardium
Lower Cardium
BioturbatedZone
Upper Cardium Bioturbated Lower Cardium
Deeper Drill Path
8TSX: YGR

Upper ReservoirCore analysis
Porosity 9-11%Kmax average 0.09md
BioturbatedInterval not analyzed
Log Porosity 3-4%
3%
OOIP 2,959 MstbOBOEIP 8,218 Mbbl
OOIP 2,198 MstbOBOEIP 6,105 Mbbl
10m
Total PackageOOIP/section 5,157 Mstb
OBOEIP/section 14,323 Mbbl
105 API
Deeper Drill Path
9TSX: YGR

#4 - YGR 100/1-26-37-8W5 2.0 Mile
101 Stages 1,520 tons
On Prod: December 5, 2016
IP30: 395 boe/d (76% liquids)
#3 - YGR 104/14-19-41-5W5 1.4 mile
On Prod: October 29, 2016
IP90 Rate: 414 boe/d (77% liquids)
#2 - YGR 100/1-14-41-6W5 2.0 mile
74 stages 1,120 tons
#5 - YGR 100/2-26-39-9W5 2.0 mile
On Prod: February 2, 2017
#1 - YGR 103/4-7-41-5W5 1.6 mile
#6 - YGR 102/8-14-41-6W5 2.0 mile
On Prod: February 3, 2017
Clean-up phase (Day 1-20): 217 boe/d (93% liquids)
Production phase (Day 21-35): 534 boe/d (88% liquids)
#10 - YGR 100/3-23-37-8W5 2.0 mile
On Prod: April 6, 2017
IP37 Rate: 313 boe/d (~69% liquids)
#8 - YGR 100/1-34-39-8W5 2.0 mile
105 stage 1,535 tons
On Prod: April 6, 2017
IP27 Rate: 1,017 boe/d (~80% liquids)
#9 - YGR 100/5-19-41-7W5 2.0 mile
On Prod: March 1, 2017
Clean-up phase (Day 1-50): 130 boe/d (98% liquids)
Production phase (Day 51-65): 173 boe/d (94% liquids)
#7 - YGR 102/16-15-44-10W5 2.0 mile
On Prod: March 23, 2017
IP35 Rate: 662 boe/d (~38% liquids)
Well #2 drilled using old well path
Well #7 restricted due to capacity constraints
Well #9 on pump, recently started flowing
Cardium Formation
10TSX: YGR

11TSX: YGR
Production Per Share
Gross Production (boe/d)
Production GrowthProduction Vintage
Note: Production volumes include royalty barrels
Note: Production volumes include royalty barrels
2015 to 2016 capital spent on efficiency and
improving IPs and recovery (ball drop to sliding
sleeve)
But capital allocation focused on growing
inventory / land base throughout the Cardium
Halo at attractive prices
Q4 2017 production of 6,700

january 2018 - · pdf filetsx: ygr 3 randall faminow, vp, land 30+ years of experience in all...

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