TSX-V: YO. September. Duvernay Shale Peters & Co. Energy Conference

Transcription

1 TSX-V: YO September Duvernay Shale Peters & Co. Energy Conference

2 Yoho Quick Facts SYMBOL YO TSX.V BASIC SHARES (Insiders 14.8%) DILUTED SHARES (WA Exercise Price of options $2.90) MARKET CAP 46.4 MM * 50.4 MM $86 MM BANK FACILITIES: Lender Limit (updated June 2012) Estimated Total Debt (including working capital) With fiscal 2012 capital program - 85% expended National Bank $52 MM $ $25.0 MM PRODUCTION: Fiscal Q3 (April to June) Current Behind Pipe Estimate 2,442 boe/d 700+/- boe/d UNDEVELOPED LAND 141,000 net acres * Increase to 50.3 MM basic and 54.3 MM diluted after closing of flow-through issue on September 14,

3 Resource Plays Focused on Two Liquids-Rich Plays Nig Creek - Montney Liquids-Rich Sand/Siltstone 54 Gross sections (29 Net) 4 successful Montney Hz wells ~100 wells (net to Yoho) Kaybob - Duvernay Liquids-Rich Shale 54 Gross sections (21 Net) 5 successful Duvernay Hz wells ~145 wells (net to Yoho) 3

4 Regional Duvernay Kaybob ~ 3 billion $ spent on land since 2009 Nearly 80 new Duvernay Wells drilled or licensed Edmonton Extensive Liquids-rich Window >320km * 30km Confirmed by early results 25 km 4

5 Kaybob A True Sweet Spot Yoho A Little Smokey Kaybob Lands Brazeau A A Smokey Kaybob The Duvernay shale in the Kaybob area is very thick and has the best porosity Brazeau A 5

6 Kaybob A True Sweet Spot Yoho Kaybob 54 gross section, (21 net) Yoho MMcf/d, 650 bcpd 5 tested WI Hz wells confirming strong liquids yields 13 Well Data Trades Celtic MMcf/d, 350 bcpd 1 well waiting on completion 4 wells on production Celtic Discovery Well Celtic MMcf/d, 130 bcpd Celtic Drilled 1 well waiting on tie-in 3 fully evaluated Duvernay cores Trilogy MMcf/d, 300 bcpd New Duvernay Well 6

7 Duvernay High Quality Shale Reservoir W5 Top Duvernay Yoho Kaybob Lands Summary Thick section 40-55m Overpressured > 18 kpa/m High Quartz, Low Clay Liquids Rich bbls/mmcf High Matrix Perm Very Low Water Saturation >50m Thickness Duvernay Core Thick, Continuous section > 3% porosity NA Gas Shales Yoho Kaybob Duvernay Base Duvernay 7

8 Production Defining Liquids Rich Kaybob Duvernay Production boe per day vs. producing days Hz boe per day Hz Cum 78,000 boe 3-13 Hz Cum 168,000 boe Hz 300 boe/day 3-13 Hz Total Liquids Yields Raw NGL Yield (bbls/mmcf) Over 65% of the total NGLs are CONDENSATE! Contours showing total Liquids Yield (bbls/mmcf) 50 bbls/mmcf Contour Interval 8

9 Horizontal Kaybob Duvernay Well Economics (unrisked)* Constant Price (Life of Well) $30, Bcf rec raw/well (gross) 3.7 Bcf sales, 516 Mstb liquids IP 5.0 MMcf/d Liquids 120 bbls/mmcf ECONOMIC PARAMETERS Liquids Blend 80% Edm price CAPEX per well $10.0 MM - drill, case, complete $25,000 NPV 10, M$ (per well) $20,000 $15,000 $10,000 $5,000 $4.00/MMbtu AECO (constant $3.00/MMbtu AECO (constant price) $40.00 $60.00 $80.00 $ $ $ Edm Par Constant Price, $/bbl * See Forward Looking Statements and Risk Factors in Appendix A hereof 9

10 Hz Well Completion Summary W5 Ball Drop - Packers Plus 8267 M3 slick water 6 of 13 stages frac d 600 tonnes of sand 2.1 MMcf/d 1734 m W5 Plug & Perf M3 slick water 12 stages, 31 perf intervals 2300 tonnes of sand 5.2 MMcf/d 1395 m W5 Ball Drop Packers Plus M3 slick water 25 intervals 2480 tonnes of sand 7.1 MMcf/d 1727 m W5 Plug & Perf M3 slick water 10 stages, 40 perf intervals 1845 tonnes of sand 7.7 MMcf/d 1461 m Unsuccessful Frac stage W5 Ball Drop Packers Plus M3 slick water 19 intervals 950 tonnes of sand 2.7 MMcf/d 864 m 10

11 Duvernay Shale Gas Vertical 50% Yoho Operated Vertical Celtic Operated 26% WI Horizontal 50% Yoho Operated Tony Creek Block Yoho Operated Horizontal 33.33% WI (producing) Horizontal 33.33% WI (producing) YOHO CURRENT LANDS Gross Sections 54 Net Sections 21 Fiscal 2013 Budget Locations 5-11 Horizontal 33.33% WI 3-13 Horizontal 33.33% WI (producing) Yoho Land Duvernay Gas Wells Duvernay Shale Thickness 6 miles Horizontal 13.86% WI (waiting on completion) 11 Yoho Operated

12 Kaybob Duvernay Development - Tony Creek Block 2013 Development Program Yoho Hz Duvernay Well Phase 1: 4 wells scheduled and new 11.2 km direct connection to Semcams KA gas plant Optimization includes plans for efficient gas gathering and water management Plans for up to 27 wells drilled from 4 multi-well pads Multi-Well Pad Sites New Pipeline to KA gas plant 12

13 Duvernay Play Summary Yoho Lands The Prize Methodology Costs Project Size 100 to 120 Bcf per section (gas in place) Liquids rich gas to 150 bbl per MMcf Per well recoveries of 1,113 Mboe (3.7 Bcf and 516 Mstb liquids) 1,500m to 1,800m horizontal sections Development: 6 to 8 wells per section Multi-stage slick water fracs with perf clusters Pad drilling development scenario - $10 MM per well (drill, case, complete) - Ample facilities in Kaybob area Royalty holiday (5 years at 5% crown royalty) 145 wells +/- (net to Yoho) 13

14 Corporate Information YOHO RESOURCES INC. Suite Third Avenue S.W. Calgary, Alberta T2P 3T3 Phone: Fax: info@yohoresources.ca Website: 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 14

15 Appendix A: Disclaimer 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 15, 2010, as posted on 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 news release contains references to estimates of petroleum classified as DPIIP in the Nig area in British Columbia which are not, and should not be confused with, oil and gas reserves. DPIIP is defined in the Canadian Oil and Gas Evaluation Handbook as the quantity of hydrocarbons that are estimated to be in place within a known accumulation prior to production. DPIIP is divided into recoverable and unrecoverable portions, with the estimated future recoverable portion classified as reserves and contingent resources and the remainder as at evaluation date is by definition classified as unrecoverable. 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 in the Nig 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 Progress and 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 15

16 Appendix A: Disclaimer (cont.) Special Note Regarding Disclosure of Reserves or Resources (cont.) 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 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. 16