Corporate Presentation July 2015 �������� ��������
� Our job is to create shareholder value � Integrity and ethical behavior are essential to success � Sound ethics and shareholders interests are compatible � It is okay to be wrong: own it, accept it, learn from it � Embrace adversity, it is a difficult business � Diversity of skill-sets within the team are critical to success � Loyalty, performance and achievement are recognized � Top decile performance in all categories is the goal � Full cycle Corporate IRR is what measures our success � ��������
Publicly listed junior oil and gas company TSX: YGR Shares Outstanding (post financing) Basic 67.7 million Options (weighted average $1.84) 6.3 million Fully Diluted 74.0 million Insider Ownership 14%/21% Basic/Fully Diluted Market Capitalization (at $1.18/share) $80 million Q1 Net Debt (adjusted for financing) $40 million ($90 million in ATB credit facilities) Enterprise Value (adjusted for financing) $120 million 2015 Q1 net debt to Q1 annualized cash flow 1.1 : 1 (adjusted for financing) Proved Developed @ Dec 31, 2014 (NPV10) 5.8 mmboe / $99.6 million Total Proved @ Dec 31, 2014 (NPV10) 20.5 mmboe / $225.4 million Proved plus Probable Reserves @ Dec 31, 2014 (NPV10) 37.4 mmboe /$395.1 million NAV / Share (with no undeveloped land value) @ Dec 31, 2014 $4.98 � ��������
Management Team Randall Faminow, VP, Land Jim Evaskevich, President & CEO � � 30+ years of experience in all aspects of oil and gas land work, 30+ years extensive executive experience with strong including negotiation, acquisitions and divestments, contracts operations background and mergers James Glessing, CA, CFO Lorne Simpson B.Sc., C.E.T., VP, Operations � 15+ years oil and gas accounting experience � 30+ years experience in the industry � Executive and financial experience as CFO with North Peace � Supervisor, Drilling Ops with PetroBakken Energy Ltd. Energy Corp � Engineered, drilled or completed 250 HZ Cardium � Controller at BlackRock Ventures, wells, 200 HZ Bakken wells, 2 HZ Duvernay wells, 25 � Canadian Natural Resources, Shell and Deloitte HZ Montney wells, and dozens of Blue Sky, Viking, SWS, Glauc, and Rock Creek HZ wells Board of Directors Gordon Bowerman Neil Mackenzie � � Chairman Director of various public companies, including Canyon � President of Cove Resources Ltd Technical Services � � Founder of several successful private and public oil Currently a partner in Blackstone Fluids, an oil and gas and gas companies drilling fluids company Robert Weir Ted Morton � � President of Weir Resource Management Ltd A former Canadian politician and cabinet minister in the Alberta government � Has held various positions in the Alberta Government Jim Evaskevich included Minister of Energy (2011-2012), Minister of � President and CEO of Yangarra Resources Ltd Finance and Enterprise (2010-2011), and Minster of Sustainable Resources (2006-2010) � ��������
������������������ ������������������ 80% 70% 60% 50% IRR 40% 67% 65% 30% 20% 41% 34% 33% 31% 27% 26% 24% 10% 12% 0% 2010 2011 2012 2013 2014 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) � ��������
$6,000 $5,000 473 498 $4,000 1,807 373 Equip 298 $3,000 Complete 1,792 1,376 273 Drill 1,187 1,134 $2,000 2,832 2,134 2,088 $1,000 1,808 1,563 $0 2010 2011 2012 2013 2014 � ��������
2015 First Quarter Production 2,642 boe /d Liquid Content 44% Sales Price $ 30.08 /boe Royalty income 0.26 / boe Royalty expense (1.68) / boe Production costs (6.34) / boe Transportation costs (1.28) / boe Field Operating netback $ 21.05 / boe Commodity contract settlement 22.95 / boe Operating netback $ 44.00 / boe G&A and other (excludes non-cash items) (2.16) / boe Finance expenses (3.92) / boe Cash flow netback $ 37.93 / boe � ��������
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50,000,000 4,000 40,000,000 (Cashflow) 3,000 (mboe) 30,000,000 2,000 20,000,000 1,000 10,000,000 Cashflow Production 0 0 2010 2011 2012 2013 2014 �������� ����������� ���!"��� ���$� ��!"����%� ���&"��� ���#� �������� ����� �������� ����� �������� ����� ����� �������� ����� �������� ����� �� �� ���� ���� ���� ���� ���� ���� ���� ���� ���� ���� �� ��������
������������������� ������������������������������� ��'��� ��� ��� ��'��� ��� (�� ��'��� )*+,! ��� ��'��� )�������-�! ��� � � ���� ���� ���� ���� ���� ���� ���� ���� ���� ���� ������������������������������� ������������������� ��� ��'��� ��� ��'��� ��� ��(. ��'��� ��� �/0 �0)� ��'��� ��� �0� � � ���� ���� ���� ���� ���� ���� ���� ���� ���� ���� � Replaced 2013 production by 1,887% (614% in 2012) � Finding and development recycle ratio of 3.55 times on P+P reserves � Finding and development costs of $11.92/boe on proved plus probable reserves � Reserve life index of 34 years � Future development costs of $297 million �� ��������
Central Alberta � Interest in 140 sections of land � 85 + horizontal wells drilled since 2010 � Focus � Cardium and Glauc plays ������� �������� � Light oil "���������#���� � ��������������� ���� High netback $������ ����!��� � Quick payouts ������� �� �������� ��������
Colorado Group 650m thick Cardium �� � Vertical production Second White Specks ��� exists in all zones Viking �� � All zones meet the criteria for horizontal drilling Glauconitic ��� Ellerslie ��� Rock Creek ��� Duvernay �� �������� ��������
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