Presentation Transcript

1. v0047 May 2014 corporate presentation TSV-V: YO www.yohoresources.ca
2. Forward Looking Statements and Risk Factors Statements in this presentation may contain forward-looking statements. Information concerning reserves and resources may be deemed to be forward-looking statements as such estimates involve the implied assessment that the resources described can be profitably produced in the future and also include statements on Yoho’s estimated future production levels, drilling plans and other corporate activities. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks that any estimate of quantity of resources is not based upon an estimate prepared or audited by a qualified reserves evaluator, that there is no certainty that any portion of the resources will be discovered, or if discovered that it will be commercially viable to produce any portion of the resource, the background risks of the oil and gas industry (e.g., operational risks in development, exploration and production; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), and uncertainties resulting from access to capital, potential delays and changes in plans with respect to exploration, development projects, capital expenditures or partners. Estimates of the net present value of the future net revenue from our reserves do not represent the fair market value of our reserves. In addition, the statements contained herein are subject to the risk factors applicable to Yoho’s business set forth in Yoho’s Annual Information Form dated December 3, 2013, as posted on www.sedar.com. Although Yoho believes that the expectations and assumptions on which such forward-looking information and statements are based are reasonable, undue reliance should not be placed on the forward-looking statements, resource estimates and information because Yoho can give no assurance that they prove to be correct. Special Note Regarding Disclosure of Reserves or Resources This presentation contains references to estimates of petroleum classified as Contingent Resources in the Kaybob, Alberta and Nig, British Columbia are not, and should not be confused with, oil and gas reserves. There is no certainty that it will be economically viable to produce any portion of the resources. Projects have not been defined to develop the resources at Nig or Kaybob as at the evaluation date. Such projects have historically been developed over a number of drilling seasons and are subject to annual budget constraints, Yoho’s policy of orderly development on a staged basis, the timing of the growth of third party infrastructure, the short and long-term view of Yoho on gas prices, the results of exploration and development activities of others in the area and possible infrastructure capacity constraints. Yoho’s belief that it will establish significant additional reserves over time is a forward looking statement and is based on certain assumptions and is subject to certain risks, as discussed above under the heading "Special Note Regarding Forward-Looking Information". Contingent resources is defined in the Canadian Oil and Gas Evaluation Handbook (“COGE Handbook”) as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. It is also appropriate to classify as Disclaimer
3. Special Note Regarding Disclosure of Reserves or Resources (cont.) contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. Contingent resources are further classified in accordance with the level of certainty associated with the estimates and may be subclassified based on project maturity and/or characterized by their economic status. The contingent resources estimates, including the corresponding estimates of before tax present value estimates, are estimates only and the actual results may be greater than or less than the estimates provided herein. There is no certainty that it will be commercially viable or technically feasible to produce any portion of the resources. Probability "Low Estimate" is a classification of estimated resources described in the COGE Handbook as being considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the Low Estimate. If probabilistic methods are used, there should be a 90% probability (P90) that the quantities actually recovered will equal or exceed the Low Estimate. "Best Estimate" is a classification of estimated resources described in the COGE Handbook as being considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the Best Estimate. If probabilistic methods are used, there should be a 50% probability (P50) that the quantities actually recovered will equal or exceed the Best Estimate. "High Estimate" is a classification of estimated resources described in the COGE Handbook as being considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the High Estimate. If probabilistic methods are used, there should be a 10% probability (P10) that the quantities actually recovered will equal or exceed the High Estimate. Disclosure of Well-Flow Test Results The Company cautions that the test results described in the press release are not necessarily indicative of long-term performance or ultimate recovery. Additionally, as well test interpretations have not been completed on the wells described in this press release, the results and data described in this press release should be considered preliminary until such interpretations have been completed. BOE equivalent Barrel of oil equivalents or BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 mcf: 1 bbl, utilizing a conversion ratio of 6 mcf: 1 bbl may be a misleading indication of value. Disclaimer (cont.)
4. Yoho – Quick Facts * Includes disposition of Nig Creek assets ** Includes one month turnaround KA gas plant
5. Sale of Nig Creek Asset
6. Operations to April 2014
7. Summary Financial and Operating Information
8. Field Netbacks by Quarter ($ per boe) Duvernay Production as a Percentage of Corporate Production
9. Yoho Reserves –as evaluated by GLJ * Without Nig property.
10. Net Asset Value Estimate – February 1, 2014 * September 30, 2013 GLJ reserves without Nig property. The values in this table do not include the net present value assigned to the Company’s Kaybob Contingent Resource Report.
11. Yoho Contingent Resources –as evaluated by GLJ
12. FD&A Costs Year Ended September 30 $20.00 $16.52 $16.30 $15.64 $14.00 $15.00 $12.50 $11.43 $9.54 $10.00 $ / Boe P+P $5.00 $0.00 2008 2009 2010 2011 2012 2013 3 Year Rolling All in – includes FDC & Revisions
13. KaybobDuvernayShale Gas
14. Regional Duvernay ~$3 billion spent on land since 2009 Nearly 140 new Duvernay wells drilled or licensed Extensive Liquids-rich Window >320km * 30km Confirmed by early results Kaybob Rich 320 km Gas Edmonton Oil Window / Condensate Dry Gas Window 25 km
15. Kaybob A True “Sweet Spot” Yoho Kaybob Lands A A’ Little Smokey Brazeau Limestone 55m A Smokey The Duvernay shale in the Kaybob area is very thick and has the best porosity Kaybob Cross-Section Brazeau A’
16. Duvernay Shale Gas – Major Infrastructure Encana Proposed CS Semcams KA > 70 producing wells > 150 total wells licensed or drilled Yoho Land Industry Duvernay Wells XTO Alliance Pipeline TransCanada Pipeline Existing Plant Semcams K3 UnderConstruction / Proposed Plant 6 miles
17. Duvernay Shale Gas YOHO CURRENT LANDS Gross Sections 59 Net Sections 23.5 50% WI Yoho Operated 50% WI “Tony Creek” Block Yoho Land 33.5% WI DuvernayGas Wells Duvernay Shale Thickness 50 Fiscal 2014 Locations 33.3% WI Yoho Operated 6 miles
18. Kaybob Horizontal Well Summary Total Liquids current average ranges from 50 to 150 bbls/MMcf
19. Duvernay Play Economics
20. Duvernay Play Summary (Yoho internal estimates)
21. Inga, BC – 3 Zones Doig, Upper & Lower Montney Overpressured Tight Gas & Oil
22. Inga – Doig Light Oil and Emerging Montney Play Yoho Lands Artek Lands Arc Doig Hz Doig Doig Siltstone ArtekMont Hz 15-50 m INGA DOIG POOL Phosphate Yoho Mont Hz Montney Upper ArtekDoig & Mont Hzs 50 m Yoho 1-19-87-23W6 Yoho Mont Hz Montney Mid Shell Mont Hz Yoho Land (5,760 net acres) Montney Lower Doig Production Key Area Wells Shell Mont Hz +50 m 2014 Location Shell Mont Hz 1 mile
23. Corporate Information Auditors KPMG LLP Banker NATIONAL BANK OF CANADA Evaluation Engineers GLJ PETROLEUM CONSULTANTS Legal Counsel BURNET, DUCKWORTH & PALMER LLP Registrar & Transfer Agent VALIANT TRUST COMPANY
24. Management Team
25. Board of Directors