Corporate Presentation August 2015 Our job - - PowerPoint PPT Presentation

• Corporate Presentation

August 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 Basic Options (weighted average $1.84) 67.7 million 6.3 million Fully Diluted 74.0 million Insider Ownership Basic/Fully Diluted 14%/21% Market Capitalization (at $1.05/share) $71 million Q2 Net Debt $46 million ($90 million in ATB credit facilities) Enterprise Value $117 million 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

• Jim Evaskevich, President & CEO
• 30+ years extensive executive experience with strong
• perations 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

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

• 15+ 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

included 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

• 24%

41% 67% 65% 33% 12% 34% 26% 31% 27% 0% 10% 20% 30% 40% 50% 60% 70% 80% 2010 2011 2012 2013 2014 IRR

• 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)

• 2,088

2,832 2,134 1,563 1,808 1,792 1,807 1,376 1,134 1,187 498 473 373 273 298 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 2010 2011 2012 2013 2014 Equip Complete Drill

• 2015 Second Quarter Production

2,115 boe /d Liquid Content 37% Sales Price $ 30.65 /boe Royalty income 0.26 / boe Royalty expense (1.15) / boe Production costs (8.22) / boe Transportation costs (1.71) / boe Field Operating netback $ 19.84 / boe Commodity contract settlement 4.20 / boe Operating netback $ 24.04 / boe G&A and other (excludes non-cash items) (2.27) / boe Finance expenses (2.83) / boe Cash flow netback $ 18.94 / boe

• 1,000

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• 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

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• 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

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• Colorado Group

650m thick Viking Glauconitic Ellerslie Rock Creek

• Vertical production

exists in all zones

• All zones meet the

criteria for horizontal drilling

• Duvernay

Cardium Second White Specks

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• Yangarra Land
• Significant amounts of
• il have been produced
• ver the past 30 years

from vertical wells

• 10 to 20 million barrels
• f Original Oil in Place

(OOIP) per section

• Accumulated 45 gross

(35 net) sections

• Yangarra has 3

horizontal wells and 2 vertical wells in the SWS formation

• * Assumes Yangarra specific heat value

Oil Hedges 2015: 300 bbl/d hedged at C$102.56 WTI/bbl 2015: 500 bbl/d hedged with a costless collar C$65.00 WTI/bbl and a ceiling of C$73.50 WTI/bbl 2015: 800 bbl/d of Edmonton par to WTI differential hedges at US$6.75/bbl 2016: 400 bbl/d hedged at C$76.10 WTI/bbl Natural Gas Hedges 2015: 2,000 GJ/d hedged at $4.11/GJ or $5.10/mcf* Interest Rate Swaps 4.70% Fixed rate on $10 million (June 2014-June 2018) 4.85% Fixed rate on $10 million (June 2014-June 2018)

• Acreage within the

liquids/volatile oil fairway

• South Block (Willesden Green)
• 7 Net Sections
• Net Pay ~ 36 m
• OGIP ranges from 70 to

100 BCF/sec

• North Block (Pembina)
• 54 Net Sections
• Net Pay ~ 20 to 24 m
• OGIP ranges from 40 to 50

BCF/sec*

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• 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 a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward looking statements or information. These risks and uncertainties which may cause actual results to differ materially from the forward looking statements or information include, among other things: general economic and business conditions; the risk of instability affecting the jurisdictions in which the Company operates; the risks of the oil and natural gas industry, such as operational risks in exploring for, developing and producing crude oil and natural gas and market demand; the possibility that government policies or laws may change or governmental approvals may be delayed or withheld; risks and uncertainties involving geology of oil and natural gas deposits; the uncertainty of reserves estimates and reserves life; the ability of the Company to add production and reserves through acquisition, development and exploration activities; the Company’s ability to enter into or renew leases; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to production (including decline rates), costs and expenses; fluctuations in oil and natural gas prices, foreign currency exchange rates and interest rates; risks inherent in the Company’s marketing operations, including credit risk; health, safety and environmental risks; and uncertainties as to the availability and cost of financing. Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties. The reader is cautioned not to place undue reliance on this forward-looking information. The forward looking statements or information contained in this presentation are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or

• therwise unless required by applicable securities laws. The forward looking statements or information contained in this

presentation are expressly qualified by this cautionary statement.

• 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 represent a value equivalency; therefore Boe's may be misleading if used in isolation. References to natural gas liquids ("NGLs") in this news release include condensate, propane, butane and ethane and one barrel of NGLs is considered to be equivalent to one barrel of crude oil equivalent (Boe). One ("BCF") equals one billion cubic feet of natural gas. One ("Mmcf") equals one million cubic feet of natural gas. Reserve Definitions: (a) "Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. (b) "Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. (c) "Developed" reserves are those reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure (e.g. when compared to the cost of drilling a well) to put the reserves on production. (d) "Developed Producing" reserves are those reserves that are expected to be recovered from completion intervals open at the time

• f the estimate. These reserves may be currently producing or, if shut-in, they must have previously been on production, and the

date of resumption of production must be known with reasonable certainty. (e) "Developed Non-Producing" reserves are those reserves that either have not been on production, or have previously been on production, but are shut in, and the date of resumption of production is unknown. (f) "Undeveloped" reserves are those reserves expected to be recovered from know accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reserves classification (proved, probable, possible) to which they are assigned. (g) The Net Present Value (NPV) is based on Deloitte AJM Forecast Pricing and costs. The estimated NPV does not necessarily represent the fair market value of our reserves. There is no assurance that forecast prices and costs assumed in the Deloitte AJM evaluations will be attained, and variances could be material.

• Yangarra Resources Ltd.

1530, 715 – 5 Ave. SW Calgary, Alberta T2P 2X6 403-262-9558