January 2017 TSX: YGR TSX: YGR Corporate Snapshot Capitalization - - PowerPoint PPT Presentation

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Corporate Presentation January 2017 TSX: YGR TSX: YGR Corporate Snapshot Capitalization Reserves and Locations (2) December 31, 2015 mmboe NPV10 ($mm) Ticker TSX: YGR Proved Developed 5.6 $97.9 Shares Outstanding (mm) Basic 79.8

SLIDE 1

TSX: YGR TSX: YGR

Corporate Presentation January 2017

SLIDE 2

TSX: YGR 2

Corporate Snapshot

1) Price as at February 3, 2017

Capitalization Reserves and Locations (2)

Ticker TSX: YGR Shares Outstanding (mm) Basic 79.8 Options (weighted avg. price $1.50) 7.9 Fully Diluted 87.7 Market Cap ($mm) (at $2.65 / share)(1) $211 Estimated 2016 Year-End Net Debt ($mm) $65 ($80mm credit facility with ATB) Enterprise Value ($mm) $276 Insider Ownership Basic 13% Fully Diluted 21%

2) Reserves effective as at December 31, 2015 based on the reserve report prepared by Deloitte LLP, independent petroleum engineers (the “Reserves Report”) 3) NAV = NPV10 Reserve Value less Net Debt

Highly motivated management and board with insiders owning 13% of the basic shares and 21% of

the fully diluted shares December 31, 2015 mmboe NPV10 ($mm) Proved Developed 5.6 $97.9 Total Proved 24.7 $315.9 2P 40.6 $499.5 Total Cardium Locations 690 Gross (430 Net) Booked Cardium Locations 140 Gross (87 Net)

NAV(3) / Share (Excl. land) December 31, 2015 Proved Developed $0.58 Total Proved $3.33 Total Proved + Probable $5.65

SLIDE 3

TSX: YGR 3

2016 – Prepare for future growth  Acquire land at the low-end of the cycle  Consolidate partner interests  Secure infrastructure capacity  Prepare and drill (one-well) pad-drilling sites; leaving significant torque to add 3 wells on existing pads 2017 – Focus on Growth

Current inventory and full cycle returns now supports an increased pace of

development

Now utilizing 2 rigs
Will ramp up to 3 rigs as commodity prices improve
Multi-well pads with one well now ready for a quick ramp-up to a 4-5 well pad

Corporate Strategy

Low commodity prices

Build inventory, avoid eroding well

economics Recovering commodity prices

Accelerate drilling and add lower-cost

production on half-cycle economics

SLIDE 4

TSX: YGR 4

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

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

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

People

SLIDE 5

TSX: YGR 5

Why Own Yangarra?

Top Decile Full Cycle rates of return
Low-cost operator, high netbacks
Cash costs totaled $12.71/boe
Operating costs of $6.97boe
Transportation costs of $1.17/boe
Royalties of $1.14/boe (4% of revenue)
G&A costs of $1.58/boe
Finance and interest costs of $1.85/boe
Low-cost philosophy, not just a result of current low commodity prices
Central Alberta Cardium formation focus
Large future drilling inventory
Consistent, low risk Cardium economics
Potential Duvernay upside

SLIDE 6

TSX: YGR 6

24% 41% 67% 65% 33% 79% 12% 34% 26% 31% 27% 44%

31%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2010 2011 2012 2013 2014 2015 IRR Half Cycle IRR ⁽¹⁾ Full Cycle IRR ⁽²⁾ Full Cycle with Duvernay

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)

Capital allocation is determined based on narrowing the gap between half

cycle and full cycle returns

SLIDE 7

TSX: YGR 7

2017 Capital Plan

CAPEX budget for 2017 $50.0 million Budget focused on Cardium Wells

5 wells in the first quarter and 10 wells in the second half

Funded with cash flow and the existing credit facilities 2017 Guidance Production (boe/d) Annual Average 4,500 – 5,000 boe/d Cash flow from operations $45 – 50 million Year end net debt Annual debt to cash flow $65 – 70 million 1.3 – 1.6 : 1 Pricing Assumptions (annual average) WTI (USD/bbl) $55.00 Edmonton Par (CDN/bbl) $68.71 AECO (CDN/GJ) $3.00

SLIDE 8

TSX: YGR 8

$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40.00 $50.00 $60.00

2017 Free Cash Flow ($3.00/mcf Gas)

WTI Prices ($US/bbl)

Free Cash Flow Sensitivity

Assumptions: $1.30 FX Rate, 20% corporate decline, 20,000 capital efficiency Liquids prices move proportionately with WTI price increases 3,500 boe/d 3,000 boe/d Sustaining Capital

3,000 boe/d = $12,000,000
3,500 boe/d = $14,000,000

$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $40.00 $50.00 $60.00

2017 Free Cash Flow ($2.50/mcf Gas)

WTI Prices ($US/bbl)

SLIDE 9

TSX: YGR 9

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Year 1 Year 2 Year 3

Boe/d

1-Rig 2-Rigs 3-Rigs

Production Potential

SLIDE 10

TSX: YGR 10 TSX: YGR

Cardium Formation

108 (78 net) Sections of Cardium

SLIDE 11

TSX: YGR 11

Cardium 2016 Initial Production

Well Rate (liquids) (Stages 103/04-07-41-5W5 (1.5 mile) IP 90 480 boe/d 82% liquids (71 stages & 1,070 tons of sand) 100/01-14-41-6W5 (2.0 mile) IP 60 120 boe/d 94% liquids (74 stages & 1,120 tons of sand) 104/14-19-41-5W5 (1.5 mile) IP 60 506 boe/d 82% liquids (69 stages & 1,056 tons of sand) 100/01-26-37-8w5 (2.0 mile) IP 30 395 boe/d 76% liquids (101 stages & 1,520 tons of sand)

Well 2 drilled using old well path (higher in formation similar to older drill programs)

and therefore needed artificial lift (larger pumpjack to be installed once second well

n pad is complete).
Well 4 restricted more than previous wells with current flow rate higher than its IP 30

rate.

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TSX: YGR 12

Cardium Drilling Inventory (1)

690 gross (430 net) future 1-mile Cardium future drilling locations (1)
Opportunity to drill extended reach wells
Willesden Green rock is generally tighter then Ferrier and North Willesden green

1) Management estimate is based on an estimate prepared by a non-independent qualified reserves evaluator of the Company in accordance with National Instrument 51-101 and the COGE Handbook, with an effective date of October 15, 2015.

Drilling Locations (1-mile laterals) Proportionate (gross locations)

100 200 300 400 500 600 700 800 2010 2011 2012 2013 2014 2015 2016

Locations

Net Gross

236 Ferrier Locations 324 Willesden Green Locations 130 North Willesden Green Locations

SLIDE 13

TSX: YGR 13

PDP 14% 1P 47% 2P 39%

2015 F&D and Recycle Ratios

0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 2010 2011 2012 2013 2014 2015 Proven Recycle P+P Recycle $- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 2010 2011 2012 2013 2014 2015 $/boe Proven F&D P+P F&D

Consistent improvement in, and

continued focus on, F&D costs and recycle ratios

In Yangarra’s view Probable and

proven 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

PDP 19% 1P 44% 2P 37%

Finding and Development Recycle Ratios NPV10 BT Volumes Reserves (1)

2P Reserves: 40.6 mmboe 2P NPV10: $499.5 million

1) Reserves effective as at December 31, 2015 based on the Reserves Report

SLIDE 14

Upper Cardium (5-15% Porosity) Bioturbated Zone (20-80% Sand) 2.5-4.0m 3.0-7.0m Old Well Path New Well Path Old Frac Plane New Frac Plane

Upper Cardium Lower Cardium Bioturbated Zone

Upper Cardium Bioturbated Conglomerate/Upper Cardium

Deeper Drill Path

14

SLIDE 15

TSX: YGR 15

Impact of Deeper Drill Path

100 200 300 400 500 600 30 60 90 120 150 180 Production Rate (boe/d) 100/1-26-41-8W5 (30% Liquids) 103/04-07-41-5w5 (82% Liquids) 104/14-19-41-5w5 (82% Liquids)

Drilling into the Bioturbated Zone/Lower Cardium

SLIDE 16

TSX: YGR 16

Impact of More Stages

50 100 150 200 250 300 350 20 40 60 80 100 120 140 160 180 200 Daily Oil Rate (bbl/d) Days on Production 00/05-17-041-07W5 (1-mile, sleeves, 18 stage, 360T) 02/12-17-041-07W5 (1-mile, sleeves, 30 stages, 540 T)

Cumulative Production 05-17 10.30 Mbbl 12-17 12.52 Mbbl

20% Improvement in IRR

SLIDE 17

TSX: YGR 17

Impact of Extended Reach

50 100 150 200 250 300 350 20 40 60 80 100 120 140 160 180 200 Daily Oil Rate (bbl/d) Days on Production 02/13-09-041-07W5 (2-mile, sleeves, 60 stage, 900T) 00/04-09-041-07W5 (1-mile, ball-drop, 20 stage, 500 T)

Cumulative Production 04-09 10.29 Mbbl 13-09 17.87 Mbbl

33% Improvement in IRR

SLIDE 18

TSX: YGR 18

Low-Cost Driller

Experienced drilling team
Pad drilling from existing locations
Long-term relationship with service providers
Cemented liners and sliding sleeves reduce costs significantly
Coil fracs without nitrogen require less horsepower on location resulting in reduced completion costs

Cost per Meter Drilled vs. Drilling Cost per Well

$691 $524 $474 $486 $372 $285 $0 $100 $200 $300 $400 $500 $600 $700 $800 2011 2012 2013 2014 2015 2016 Cost per Meter Drilled $ / Meter Drilled

SLIDE 19

TSX: YGR 19

Updated Completion Technology

Cemented liners and sliding sleeve
Tighter well frac spacing
Increased ability to target fracs
Better frac isolation
No longer losing energy to packers
Improved initial rates

18 Stages 30 Stages 45 Stages 85 Stages 200 400 600 800 1,000 1,200 KG of Sand/M3

Completion Stages and Costs Sand Concentration

$196,500 $129,500 $91,500 $60,500 $59,250 $29,500 $16,250 $0 $50,000 $100,000 $150,000 $200,000 $250,000 2010 2011 2012 2013 2014 2015 2016

$/stage

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TSX: YGR 20

New Alberta Royalties

For wells with TVD shallower than or equal to 2,000 metres C* ($) = 1,170(TVD-249) + 800TLL + 0.6TVDTPP For wells with TVD deeper than 2,000 metres C* ($) = 1,170(TVD-249) + 3,120(TVD-2,000) + 800TLL + 0.6TVDTPP 1.0-Mile 1.5 Mile 2.0 Mile Duvernay TVD 2,150 2,150 2,150 3,420 TLL 1,609 2,414 3,217 1,825 Tonne per stage 15 15 15 137 # Fracs 40 60 80 27 Total Propant 600 900 1,200 3,699 C 4,753,370 $ 5,784,370 $ 6,813,770 $ 17,190,818 $ Well Cost 2,500,000 $ 3,000,000 $ 3,500,000 $ 8,000,000 $ Potential IRR Increase +10% +15% +20% Cardium

SLIDE 21

TSX: YGR 21 $40/bbl $50/bbl $60/bbl

WTI (USD/bbl) WTI (USD/bbl) WTI (USD/bbl)

Willesden Green

IRR (%) Payout (yrs) IRR (%) Payout (yrs) IRR (%) Payout (yrs)

1-Mile ($2.5 million well cost)

18% 3.2 41% 1.6 70% 1.1

1.5-Mile ($3.0 million well cost)

36% 1.5 74% 1.1 121% 0.8

2-Mile ($3.5 million well cost)

49% 1.3 96% 0.9 154% 0.7

North Willesden Green 1-Mile ($2.7 million well cost)

31% 1.9 57% 1.5 87% 1.2

1.5-Mile ($3.2 million well cost)

61% 1.4 95% 1.2 135% 1.0

Ferrier 1-Mile ($2.5 million well cost)

61% 1.4 82% 1.1 114% 0.8

2-Mile ($3.5 million well cost)

80% 1.1 110% 0.8 151% 0.6

Well Economics (with MRF)

Assumptions

$2.50/GJ Natural Gas
$8.00/boe Operating Costs

Current costs are trending lower than budget

SLIDE 22

TSX: YGR 22

Duvernay Formation

15-19-39-6W5 (1.5 Mile) IP 20 - 700 boe/d 52% liquids (81 stages & 1,744 tons of sand)

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TSX: YGR 23

Risk Management Program

Oil Hedges 2017 200 bbl/d collar C$65.00 WTI/bbl and a ceiling of C$75.00 WTI/bbl 100 bbl/d at C$70.00 WTI/bbl 200 bbl/d at C$64.45 WTI/bbl Jan – Mar 2017 200 bbl/d at C$71.00 WTI/bbl Feb – Jun 2017 2018 Sold Call on 200 bbl/d at US$70.00 WTI/bbl Natural Gas 2017 2,000 GJ/d at $3.12/GJ 2,000 GJ/d at $3.01/GJ Interest Rate Swaps 4.400% (2.150% + 2.25% Stamping Fee) Fixed rate on $10 million (June 2014-May 2018) 4.600% (2.350% + 2.25% Stamping Fee) Fixed rate on $10 million (June 2014-June 2018) 4.185% (1.935% + 2.25% Stamping Fee) Fixed rate on $10 million (May 2018-Nov 2023) 4.195% (1.945% + 2.25% Stamping Fee) Fixed rate on $10 million (June 2018-Nov 2023)

SLIDE 24

TSX: YGR 24

Analyst Coverage

Acumen Capital Finance Partners Limited Trevor Reynolds Oil and Gas Research Analyst treynolds@acumencapital.com (403) 410-6842 AltaCorp Capital Inc. Thomas Matthews, P.Eng, CFA Analyst - Institutional Research tmatthews@altacorpcapital.com (403) 539-8621 Clarus Securities Inc. Robert Pare, CA, CFA Managing Director, Equity Research rpare@clarussecurities.com (403) 767-0821 Industrial Alliance Securities Inc. Michael Charlton Research Analyst - Oil & Gas mcharlton@mgisecurities.com (403) 705-4978 Paradigm Capital Inc. Ken Lin, CFA Oil and Gas Analyst kenl@paradigmcap.com (403) 513-1042 PI Financial Corp. Brian Purdy, P.Eng, MBA, CFA Research Analyst - Energy bpurdy@pifinancial.com (403) 543-2823 Raymond James Ltd. Jeremy McCrea, CFA Oil and Gas Analyst jeremy.mccrea@raymondjames.ca (403) 509-0518

SLIDE 25

25 TSX: YGR

Appendix

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TSX: YGR 26

Glauconite Formation

Legend Wells glauc pens Glauc Prod_Inj glauc @TD Working Yangarra land

1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 1 1 1 1 2 1 3 1 4 1 5 2 2 2 3 2 4 2 5 2 6 2 7 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 1 1 1 1 2 1 3 1 4 1 5 2 2 2 3 2 4 2 5 2 6 2 7 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 1 1 1 1 2 1 3 1 4 1 5 2 2 2 3 2 4 2 5 2 6 2 7 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 1 1 1 1 2 1 3 1 4 1 5 2 2 2 3 2 4 2 5 2 6 2 7 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 1 1 1 1 2 1 3 1 4 1 5 2 2 2 3 2 4 2 5 2 6 2 7 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 3 1 3 2 3 3 3 4 3 5 3 6 1 2 3 1 1 1 1 2 1 3 1 4 1 5 2 2 2 3 2 4 2 5 2 6 2 7 3 4 3 5 3 6 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 1 2 3 4 5 6 7 8 9 1 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 1 2 3 1 1 1 1 2 1 3 1 4 1 5 2 2 2 3 2 4 2 5 2 6 2 7 50 50 CHANNEL CHANNEL CHANNEL 50 nde Channel Porosity t in Mid Mann Mann CHANNEL 50 100 100 no logs over zone 50 50 50 50 V m chan 100 50 50 100 50 50 5 50 50 100 100 50 50 3-20 GR/neutron/strip log

nly. looks shaley with 0

to 10% porosity in lwr bdd sand. 50

C H A N N E L CHANNE CHANNEL

an any cut cut amo amoun unt an any cut cut amo amoun unt

H O A D L E Y B A R R I E R B A R H O A D L E Y B A R R I E R B A R

LOWER SHOREFACE SANDS O F F S H O R E S H A L E F A C I E S

V i k i n g P r

Estimate e 30-40 Perfs not Open no perfs glauc channel prod chan sand prod nde 100 100 G l a u c , E l l e s l i e O p e n O s t r a c

P r

G l a u c P r

G l a u c , E l l e s l i e O p e n O s t r a c

P r

G l a u c P r

50 100 100 100 100 100 100 100 50 50 50 50 1 3 . 5 m e t e r s s a n d , c a s e d h

e l

, p

i t y

d w e l l 3 m e t e r s

m i c r

e l l e r s a n d g l a u c p e r f s

e n . e l l e r s l i e r e c e n t c

p l e t i

e l l e r s a n d g l a u c p e r f s

e n . e l l e r s l i e r e c e n t c

p l e t i

u p p e r a n d l

e r s a n d N P . e r

e d b y c h a n n e l s u r f a c e c

d i n a t e s d

m a t c h l a t a n d l

g w h i c h p l

s i n 3

8 50 50 50 100 100 100 100 50 50 50 no TVD 50 Average IP30 4.4 mmcf/d 4 - 2 milers Average EUR 497 MBOE 5 - 1.5 milers Average IP30 1.7 mmcf/d Average EUR 382 MBOE R3W5 R4 R5 R6 R7 R8 R9 T37 T38 T39 T40 T41 T42 T43

SLIDE 27

TSX: YGR 27

50 100 150 200 250 300 350 400 450 500 2010 2011 2012 2013 2014 2015 Share Capital 2P NPV10 (less debt)

Creating Shareholder Value

SLIDE 28

TSX: YGR 28 Production Run Rate Production boe/d 3,000 3,500 Decline Rate % 20% 20% Annual Production Decline boe/d 600 700 Maintenance Capex Production Replacement boe/d 600 700 Capital Efficiency $/boe/d 20,000 20,000 Maintenance Capex $ 12,000,000 14,000,000 Cash Flow $40 WTI USD/bbl ($20/bbl netback) $ 21,900,000 25,600,000 $50 WTI USD/bbl ($26/bbl netback) $ 28,500,000 33,200,000 $60 WTI USD/bbl ($33/bbl netback) $ 36,100,000 42,200,000

Sustainability Analysis

Assumptions: $2.50mcf AECO Gas & 1.30 FX Rate Liquids prices move proportionately with WTI price increases

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TSX: YGR 29 Production Run Rate Production boe/d 3,000 3,500 Decline Rate % 20% 20% Annual Production Decline boe/d 600 700 Maintenance Capex Production Replacement boe/d 600 700 Capital Efficiency $/boe/d 20,000 20,000 Maintenance Capex $ 12,000,000 14,000,000 Cash Flow $40 WTI USD/bbl ($22/bbl netback) $ 24,100,000 28,100,000 $50 WTI USD/bbl ($28/bbl netback) $ 30,700,000 35,800,000 $60 WTI USD/bbl ($36/bbl netback) $ 39,400,000 46,000,000

Sustainability Analysis

Assumptions: $3.00 mcf AECO Gas & 1.30 FX Rate Liquids prices move proportionately with WTI price increases

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TSX: YGR 30

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

il 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 otherwise unless required by applicable securities laws. The forward looking statements

r information contained in this presentation are expressly qualified by this cautionary statement.

Forward-looking Statements

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31 TSX: YGR

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

therwise 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 of 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. This presentation contains references to measures used in the oil and natural gas industry such as “netback”. These measures do not have standardized meanings prescribed by GAAP and therefore should not be considered in isolation. These reported amounts and their underlying calculations are not necessarily comparable or calculated in an identical manner to a similarly titled measure of other companies where similar terminology is used. Where these measures are used they should be given careful consideration by the reader. These measures have been described and presented in this presentation in order to provide shareholders and potential investors with additional information regarding the Corporation's liquidity and its ability to generate funds to finance its operations. Netback denotes petroleum and natural gas revenue and realized gains or losses on financial instruments less royalty expenses, operating expenses and transportation and marketing expenses calculated on a per boe basis.

Reserve Definitions

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