TSX: YGRTSX: YGR
Corporate Presentation
September 2016
TSX: YGR 2
Corporate Snapshot
1) Price as at September 16, 2016
Capitalization Reserves and Locations (2)
Ticker TSX: YGR
Shares Outstanding (mm)
Basic 79.2
Options (weighted avg. price $1.48) 6.7
Fully Diluted 85.9
Market Cap ($mm) (at $1.10 / share)(1) $87
Q2 Net Debt ($mm) $51
($80mm credit facility with ATB)
Enterprise Value ($mm) $138
Insider Ownership
Basic 13%
Fully Diluted 19% 2) Reserves effective as at December 31, 2015 based on the reserve report prepared
by Deloitte LLP, independent petroleum engineers (the “Reserves Report”)
3) NAV = NPV10 Reserve Value less Net Debt
• Highly motivated management and board with insiders owning 13% of the basic shares and 19% of
the fully diluted shares
mmboe NPV10 ($mm)
Proved Developed 5.6 $97.9
Total Proved 24.7 $315.9
2P 40.6 $499.5
Total Cardium Locations 462 Gross (270 Net)
Booked Cardium Locations 140 Gross (87 Net)
NAV(3) / Share (Excl. land)
Proved Developed $0.58
Total Proved $3.33
Total Proved + Probable $5.65
TSX: YGR 3
• 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
• Future growth opportunity
• Current inventory supports an ability to increase pace of development when
justified by full cycle returns
• Will ramp up to 2 or 3 rigs as commodity price 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
TSX: YGR 4
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
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
TSX: YGR 5
Why Own Yangarra?
• Top Decile Full Cycle rates of return
• Low-cost operator, high netbacks
• Cash costs totaled $12.66/boe
• Operating costs of $7.01/boe
• Transportation costs of $1.41/boe
• Royalties of $0.45/boe (2% of revenue)
• G&A costs of $1.48/boe
• Finance and interest costs of $2.31/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
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
TSX: YGR 7
PDP14%
1P47%
2P39%
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
$/b
oe
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
PDP19%
1P44%
2P37%
Finding and Development Recycle Ratios
NPV10 BT Volumes
Reserves (1)
2P Reserves: 40.6 mmboe2P NPV10: $499.5 million
1) Reserves effective as at December 31, 2015 based on the Reserves Report
TSX: YGR 8
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
369
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$0
$100
$200
$300
$400
$500
$600
$700
$800
2011 2012 2013 2014 2015
Co
st
Per
Well
($’0
00)
Co
st
pe
r M
ete
r D
rill
ed
$ / Meter Drilled Drilling Cost per Well
TSX: YGR 9
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
0
5
10
15
20
25
30
2010 2011 2012 2013 2014 2015
$0
$50,000
$100,000
$150,000
$200,000
$250,000
Num
ber
Of S
tages
Cost per
Sta
ge
Average number of stages per well Cost per stage
18 Stages 30 Stages 45 Stages
0
100
200
300
400
500
600
700
800
900
1,000
KG
of
San
d/M
3
Completion Stages and Costs
Sand Concentration
TSX: YGR 10
Impact of More Stages
0
50
100
150
200
250
300
350
0 20 40 60 80 100 120 140 160 180 200
Daily O
il R
ate
(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
TSX: YGR 11
Extended Reach Well Results
• Cemented liners with siding sleeves has made extended reach wells possible
• Significant reduction in drilling costs per meter with extended reach wells
410
367
290
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
1-Mile 1.5 Mile 2 Mile
Co
st
pe
r F
rac
Co
st
pe
r M
ete
r D
rill
ed
Drilling Cost per Meter Cost per Frac
Extended Reach Costs
TSX: YGR 12
Impact of Extended Reach
0
50
100
150
200
250
300
350
0 20 40 60 80 100 120 140 160 180 200
Daily O
il R
ate
(bbl/
d)
Days on Production
02/13-09-041-07W5 (2-mile, sleeves, 60 stage, 900T)
00/04-09-041-07W5 (1-mile, ball-drop, 20 stage, 500 T)
Cumulative Production
04-09 10.29 Mbbl
13-09 17.87 Mbbl
33% Improvement in IRR
TSX: YGR 13
New Alberta RoyaltiesFor wells with TVD shallower than or equal to 2,000 metres
C* ($) = 1,170*(TVD-249) + 800*TLL + 0.6*TVD*TPP
For wells with TVD deeper than 2,000 metres
C* ($) = 1,170*(TVD-249) + 3,120*(TVD-2,000) + 800*TLL + 0.6*TVD*TPP
1.0-Mile 1.5 Mile 2.0 Mile Duvernay
TVD 2,150 2,150 2,150 3,420
TLL 1,609 2,414 3,217 1,825
Tonne per stage 15 15 15 137
# Fracs 40 60 80 27
Total Propant 600 900 1,200 3,699
C* 4,753,370$ 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
TSX: YGR 14
$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
TSX: YGR 15
$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($3.00/mcf Gas)
WTI Prices ($US/bbl)
Free Cash Flow Sensitivity
Assumptions:
$1.30 FX Rate, 30% corporate decline, 20,000 capital efficiency
Liquids prices move proportionately with WTI price increases
3,500 boe/d3,000 boe/dSustaining Capital
• 3,000 boe/d = $18,000,000
• 3,500 boe/d = $21,000,000
$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)
TSX: YGR 16
0
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
TSX: YGR 17TSX: YGR
Cardium Formation
TSX: YGR 18
Cardium Drilling Inventory (1)
• 462 gross (270 net) future 1-mile Cardium future drilling locations (1)
• Opportunity to drill extended reach wells
• Total Cardium gross oil in place of 559 mmboe (1)
• Willesden Green rock is generally tighter then Ferrier and North Willesden green
212 1-mile
Locations
84 2-mile
Locations
38 1.5-mile
Locations
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)
0
50
100
150
200
250
300
350
400
450
500
2010 2011 2012 2013 2014 2015
Locations
Net Gross
78 Ferrier Locations
269 Willesden
Green Locations
115 North Willesden
Green Locations
TSX: YGR 19
Duvernay Formation
62 Hour flow test
• Gas rates ranged from 3.2
mmcf/d to 3.5 mmcf/d with a
final rate of 3.4 mmcf/d
• Free condensate (~60○ API)
rate of 50 – 100 bbl/mmcf
with an average of 77
bbl/mmcf
• Water flow-back rate was 75
bbl/h at the start of flow test
declining to 21.5 bbl/h at the
end of the test
• The well will remain shut in for another rest period of 30-45 days which will allow more water
to soak into the desiccated rock in the reservoir
TSX: YGR 20
Risk Management Program
Oil Hedges
2016: 400 bbl/d collar C$73.45 WTI/bbl and a ceiling of C$85.00 WTI/bbl
2016: 400 bbl/d Edmonton par to WTI differential at US$3.95/bbl
2016: 200 bbl/d at C$54.00 WTI/bbl April – June 2016
2016: 200 bbl/d at C$56.50 WTI/bbl July – Sep 2016
2016/2017: 200 bbl/d at C$64.45 WTI/bbl Oct 2016 – Mar 2017
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)
TSX: YGR 21
Analyst Coverage
Acumen Capital Finance Partners Limited
Trevor Reynolds
Oil and Gas Research Analyst
(403) 410-6842
AltaCorp Capital Inc.
Thomas Matthews, P.Eng, CFA
Analyst - Institutional Research
(403) 539-8621
Clarus Securities Inc.
Robert Pare, CA, CFA
Managing Director, Equity Research
(403) 767-0821
Dundee Capital Markets
Brian Kristjansen
Managing Director, Head of Energy Research
(403) 509-2662
Industrial Alliance Securities Inc.
Michael Charlton
Research Analyst - Oil & Gas
(403) 705-4978
Paradigm Capital Inc.
Ken Lin, CFA
Oil and Gas Analyst
(403) 513-1042
PI Financial Corp.
Brian Purdy, P.Eng, MBA, CFA
Research Analyst - Energy
(403) 543-2823
Raymond James Ltd.
Jeremy McCrea, CFA
Oil and Gas Analyst
(403) 509-0518
22TSX: YGR
Appendix
TSX: YGR 23
Interest Consolidation
3rd Party
Farm-in
Relentless
3rd Party
Farm-in
PennWest
ConocoPhillips
TSX: YGR 24
Glauconite Formation
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50
50
CHANNEL
CHANNEL
CHANNEL
50
nde
ChannelPorosity
Fault Repeat in Mid Mann
Fault Repeat Above Mann
CHANNEL
50
100
100
no logs overzone
50
50
50
50
V m chan
100
50
50
100
50
50
50
50
50
100
100
50
503-20 GR/neutron/strip logonly. looks shaley with 0 to 10% porosity inlwr bdd sand.
50
CHANNEL
CHANNELany cut amount
any cut amount
HO
ADLEY BARRIE
R BAR
LOW
ER S
HOREFA
CE S
ANDS
OFFSH
ORE S
HALE F
ACIE
S
VikingProd
Estimatee 30-40
Perfs notOpen
no perfs
glaucchannelprod
chansandprod
nde
100
100
Glauc,ElleslieOpen
OstracodProd
GlaucProd
Glauc,ElleslieOpen
OstracodProd
GlaucProd
50
100
100
100
100
100 100
100
5050
50
13.5 meterssand,cased holelog,porosity
old well3 metersofmicrolog
ellers and glaucperfs open.ellerslie recentcompletion
ellers and glaucperfs open.ellerslie recentcompletion
upper and lowersand NP. erodedby channel
surface coordinates donot match lat and longwhich plots in3-18
50
50
50
100
100
100
100
50
50
50
no TVD
50
Average IP30 4.4 mmcf/d4 - 2 milers
Average EUR 497 MBOE
5 - 1.5 milersAverage IP30 1.7 mmcf/d
Average EUR 382 MBOE
R3W5R4R5R6R7R8R9
R3W5R4R5R6R7R8R9
T37
T38
T39
T40
T41
T42
T43
T44
T37
T38
T39
T40
T41
T42
T43
T44
Legend
Wells
glauc pens
Glauc Prod_Inj
glauc @TD
Working
Yangarra land
Glauc Show Map
Well Data Base Updated May 19, 2015
By : Poruchny Date : 2015/05/22
Scale = 1:85000 Project : glauc show map2
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50
50
CHANNEL
CHANNEL
CHANNEL
50
nde
ChannelPorosity
Fault Repeat in Mid Mann
Fault Repeat Above Mann
CHANNEL
50
100
100
no logs overzone
50
50
50
50
V m chan
100
50
50
100
50
50
50
50
50
100
100
50
503-20 GR/neutron/strip logonly. looks shaley with 0 to 10% porosity inlwr bdd sand.
50
CHANNEL
CHANNELany cut amount
any cut amount
HO
ADLEY BARRIE
R BAR
LOW
ER S
HOREFA
CE S
ANDS
OFFSH
ORE S
HALE F
ACIE
S
VikingProd
Estimatee 30-40
Perfs notOpen
no perfs
glaucchannelprod
chansandprod
nde
100
100
Glauc,ElleslieOpen
OstracodProd
GlaucProd
Glauc,ElleslieOpen
OstracodProd
GlaucProd
50
100
100
100
100
100 100
100
5050
50
13.5 meterssand,cased holelog,porosity
old well3 metersofmicrolog
ellers and glaucperfs open.ellerslie recentcompletion
ellers and glaucperfs open.ellerslie recentcompletion
upper and lowersand NP. erodedby channel
surface coordinates donot match lat and longwhich plots in3-18
50
50
50
100
100
100
100
50
50
50
no TVD
50
Average IP30 4.4 mmcf/d4 - 2 milers
Average EUR 497 MBOE
5 - 1.5 milersAverage IP30 1.7 mmcf/d
Average EUR 382 MBOE
R3W5R4R5R6R7R8R9
R3W5R4R5R6R7R8R9
T37
T38
T39
T40
T41
T42
T43
T44
T37
T38
T39
T40
T41
T42
T43
T44
Legend
Wells
Glauc Prod_Inj
glauc @TD
glauc pens
Working
Yangarra land
Glauc Show Map
Well Data Base Updated May 19, 2015
By : Poruchny Date : 2015/05/22
Scale = 1:85000 Project : Glauc Show Map
TSX: YGR 25
0
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
TSX: YGR 26
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
0% -10% -20% -30%
Payout (yrs) - Well Cost Sensitivity
$3.0 Million $2.7 Million $2.4 Million $2.1 Million0%
20%
40%
60%
80%
100%
120%
140%
160%
0% -10% -20% -30%
IRR - Well Cost Sensitivity
$3.0 Million $2.7 Million $2.4 Million $2.1 Million
Well Economics
Assumptions
• 1.5 mile well
• $50/bbl WTI
• $2.00/GJ Natural Gas
• $8.00/boe Operating Costs
TSX: YGR 27
Production
Run Rate Production boe/d 3,000 3,500
Decline Rate % 30% 30%
Annual Production Decline boe/d 900 1,050
Maintenance Capex
Production Replacement boe/d 900 1,050
Capital Efficiency $/boe/d 20,000 20,000
Maintenance Capex $ 18,000,000 21,000,000
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
TSX: YGR 28
Production
Run Rate Production boe/d 3,000 3,500
Decline Rate % 30% 30%
Annual Production Decline boe/d 900 1,050
Maintenance Capex
Production Replacement boe/d 900 1,050
Capital Efficiency $/boe/d 20,000 20,000
Maintenance Capex $ 18,000,000 21,000,000
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
TSX: YGR 29
Statements in this presentation may contain forward-looking information including expectations of future production and components of cash flow andearnings. Forward looking statements or information are based on current expectations, estimates and projections that involve a number of risks anduncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward looking statements orinformation. 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 theoil and natural gas industry, such as operational risks in exploring for, developing and producing crude oil and natural gas and market demand; the possibilitythat government policies or laws may change or governmental approvals may be delayed or withheld; risks and uncertainties involving geology of oil andnatural 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 ordevelopment projects or capital expenditures; the uncertainty of estimates and projections relating to production (including decline rates), costs andexpenses; 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 theforegoing 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 thispresentation are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward looking statements orinformation, whether as a result of new information, future events or otherwise unless required by applicable securities laws. The forward looking statementsor information contained in this presentation are expressly qualified by this cautionary statement.
Forward-looking Statements
30TSX: 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), unlessotherwise stated. The Boe conversion ratio of 6 Mcf to 1 Bbl is based on an energy equivalency conversion method and does not represent a valueequivalency; 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 onebillion 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 productionmust 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 areshut 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 thereserves 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 marketvalue of our reserves. There is no assurance that forecast prices and costs assumed in the Deloitte AJM evaluations will be attained, and variancescould be material.
This presentation contains references to measures used in the oil and natural gas industry such as “netback”. These measures do not have standardizedmeanings prescribed by GAAP and therefore should not be considered in isolation. These reported amounts and their underlying calculations are notnecessarily comparable or calculated in an identical manner to a similarly titled measure of other companies where similar terminology is used. Wherethese measures are used they should be given careful consideration by the reader. These measures have been described and presented in thispresentation in order to provide shareholders and potential investors with additional information regarding the Corporation's liquidity and its ability togenerate funds to finance its operations. Netback denotes petroleum and natural gas revenue and realized gains or losses on financial instruments lessroyalty expenses, operating expenses and transportation and marketing expenses calculated on a per boe basis.
Reserve Definitions
31TSX: YGR
Yangarra Resources Ltd.
1530, 715 – 5 Ave. SW
Calgary, Alberta T2P 2X6
403-262-9558