AGM Documents 3

Yoho Resources Inc. Announces Year End Operational and Financial Results; Doubles Production during Fiscal 2007 from Fiscal 2006

Calgary, Alberta – December 10, 2007 - Yoho Resources Inc. (“Yoho” or the “Company”) filed
today audited annual consolidated financial statements for the year ended September 30, 2007 and
related Management’s Discussion and Analysis on www.sedar.com.

Highlights

  • Yoho’s fiscal 2007 production averaged 1,364 boe per day (80% natural gas), a 93%
    increase from 706 boe per day for fiscal 2006. The Company exited fiscal 2007 with
    production of 1,850 boe per day, exceeding the previously announced estimate of 1,800
    boe per day.

  • As a result of increased production, funds from operations for fiscal 2007 increased 50% to
    $9.7 million from $6.5 million last year. On a per share basis, funds from operations for
    fiscal 2007 increased 25% to $0.55 per share diluted from $0.44 per share diluted last year.

  • Yoho’s fiscal 2007 exploration and acquisition activities resulted in a 79% increase in
    proved plus probable reserves, representing a replacement rate of 450% over 2007
    production. At September 30, 2007 proved plus probable reserves totaled 3,937 Mboe.

  • Yoho’s current production (December 2007) is approximately 1,900 boe per day. Yoho has
    an additional 200 boe per day estimated production from two wells awaiting tie-in.

 

 

Year ended

September 30, 2007

 

Year ended

September 30, 2006

       

Financial ($)

     

Petroleum and natural gas sales

20,370,428

 

10,739,566

Funds from operations

9,707,848

 

6,457,539

  per share - basic

0.59

 

0.48

  per share - diluted

0.55

 

0.44

Net income (loss)

(6,192,139)

 

1,834,991

  per share - basic

(0.38)

 

0.14

  per share - diluted

(0.38)

 

0.12

Capital expenditures

45,982,406

 

25,100,115

       

Production

     

Natural gas (mcf/d)

6,524

 

2,422

Light oil and NGL (bbls/d)

151

 

106

Heavy oil (bbls/d)

126

 

196

BOE (boe/d)

1,364

 

706

 

 

 

Year ended

September 30, 2007

 

Year ended

September 30, 2006

Reference prices

     

AECO gas ($/GJ)

6.31

 

7.22

Edmonton par oil ($/bbl)

70.87

 

74.15

LLB heavy oil ($/bbl)

48.72

 

34.07

       

Yoho average prices

     

Natural gas ($/mcf)

6.65

 

6.96

Light oil and NGL ($/bbl)

52.42

 

55.37

Heavy oil ($/bbl)

35.69

 

34.07

       

Operating netbacks

     

Natural gas ($/mcf)

3.94

 

5.13

Light oil and NGL ($/bbl)

30.77

 

33.55

Heavy oil ($/bbl)

18.75

 

19.49

Combined ($/boe)

24.16

 

28.03

       

Number of shares outstanding

     

Weighted average

     

  Basic

16,509,680

 

13,500,219

  Diluted

17,642,344

 

14,829,409

End of year

     

  Basic

17,379,654

 

14,306,104

  Diluted

19,896,880

 

16,713,330

Financial

Yoho’s funds from operations for fiscal 2007 increase 50% to $9.7 million from $6.5 million in fiscal
2006, due to the 93% increase in production. At September 30, 2007, the Company reviewed the
valuation of the goodwill balance and determined that based upon Yoho’s current quoted market
share price an impairment of goodwill had occurred. Based upon this review, an impairment of the
goodwill of $4.9 million recorded in December 2006 from the acquisition of the B.C. properties has
been recorded as a non-cash charge to income as of September 30, 2007. It is this charge for
goodwill impairment, and increased charges for depletion, depreciation and amortization, that
contribute to the net loss for the 2007 fiscal year. Yoho’s petroleum and natural gas properties
were subject to a ceiling test at September 30, 2007 and no write-down was required under this
calculation.

Drilling

Yoho’s drilling program continued primarily in the Peace River Arch area of Alberta. During fiscal
2007, the Company participated in a total of 20 (10.2 net) wells of which 16 (8.4 net) wells were
located in the Arch with the balance located in a new area of Alberta. Drilling operations
commenced in British Columbia very late in calendar 2007 and will accelerate in 2008. In the
period from the end of fiscal 2007 to December 6, 2007 the Company has drilled an additional 3
(2.8 net) wells, resulting in 2 (1.8 net) gas wells and one well which was abandoned.

 

Fiscal 2007

 

Gross

Net

Oil

1

0.5

Gas

10

5.7

D&A

9

4.0

Total

20

10.2

Production 

Yoho substantially increased production during fiscal 2007, averaging 1,364 boe per day as
compared to fiscal 2006 average production of 706 boe per day, a 93% increase. The Company
exited the 2007 fiscal year (September, 2007) in excess of 1,800 boe per day, doubling from the
fiscal 2006 exit rate of 900 boe per day. The increase in production levels resulted from a
successful drilling program in Alberta and the acquisition of 500 boe per day from the B.C. Assets in
December 2006. Yoho’s current production is approximately 1,900 boe per day with an additional
200 boe per day behind pipe awaiting tie in.

Land and Seismic

The Company has continued to add to both land and seismic inventories during fiscal 2007.
Undeveloped land increased from 56,000 net acres and the end of fiscal 2006 to 115,000 net acres
currently. The Company’s seismic inventory currently stands at 2,370 km of 2D seismic data and
290 kmof 3D seismic data. Seismic and land are key components to future growth for the
Company in 2008 and beyond.

Reserves

The following table outlines a summary of the Company’s reserves at September 30, 2007:

 

Oil & NGL

mbbls

Natural Gas

mmcf

Combined

Mboe

NPV 10% BIT

$ thousands

Proved developed producing

495

11,756

2,455

43,673

Total proved

534

13,720

2,821

47,512

Total proved plus probable

750

19,120

3,937

61,895


During fiscal 2007, the Company’s exploration and capital expenditures of $20.2 million resulted in
proved plus probably reserve additions of 1,290 Mboe, for a finding and development cost of
$18.77 per boe. The British Columbia assets were acquired in December, 2006 for $25.8 million
and added 1,144 Mboe of proved and probable reserves at a finding and development cost of
$22.52 per boe. Overall, the total capital program for fiscal 2007, including technical reserve
revisions and change in future capital, resulted in finding and development cost for proved and
probable reserves of $20.68 per boe.

2008 Capital Budget

Due to reduced expectations for natural gas prices and in light of the recent announcement by the
Alberta government on changes to crown royalties, Yoho has reviewed its fiscal 2008 capital
program. Yoho is now planning a capital program of between $13 and $15 million for fiscal 2008.
The Company plans to drill between 13 (9.8 net) and 15 (11.6 net) wells for the period from October
1, 2007 to September 30, 2008. The budget has been allocated as follows: $9 to $11 million for
drilling, completion and equipment and $4 million for land and seismic. At September 30, 2007,
Yoho had drawn $15.7 million on bank credit facilities of $27 million. The Company has flexibility in
the current budget to accelerate or reduce capital programs accordingly with changes in natural gas
pricing and related cash flows.

Outlook

Yoho is currently forecasting a reduced capital program in fiscal 2008. The budget will remain
flexible and will change subject to natural gas prices and industry conditions. The reduction in
proposed capital spending from the budget previously announced will come entirely in Alberta and
is a direct result of the Alberta governments’ changes to the royalty program effective January 1,
2009. After careful review of the impact of the proposed royalty program, the Company has
allocated a higher percentage of capital to British Columbia where the economics of drilling higher
deliverability wells with potential upside on natural gas prices is better than in Alberta.

Natural gas prices remain a large variable in our outlook for fiscal 2008. Recent increases in AECO
prices are encouraging, but we will remain cautiously optimistic and will allocate capital accordingly.
Yoho continues to build a substantial inventory of plays, prospects and ideas that will be brought
forward when the economic conditions for each project dictates. In the current economic climate,
we do see some signs of the service costs in our business moderating and we will monitor the cost
side of the equation very carefully.

Reduced availability of capital, lower natural gas prices, the higher Canadian dollar and the new
Alberta royalty regime has created a challenging environment for junior oil and gas companies in
Western Canada. We expect further consolidation in the junior oil and gas sector during 2008.
Yoho is actively evaluating potential corporate and property acquisitions to add to Yoho’s
production, reserve base and upside potential during this time of opportunity.

Yoho Resources Inc. is a Calgary based junior oil and natural gas company with operations
focusing in the northwest Peace River Arch of Alberta and northeast British Columbia. The
common shares of Yoho are listed on the TSX Venture Exchange under the symbol “YO”.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy the
securities in any jurisdiction. The common shares of Yoho will not be and have not been registered
under the United States Securities Act of 1933, as amended, and may not be offered or sold in the
United States, or to a U.S. person, absent registration or applicable exemption therefrom.

For more information please contact:

Wendy S. Woolsey
Vice President, Finance and CFO
Yoho Resources Inc.
Phone: (403) 537-1771
www.yohoresources.ca

The TSX Venture Exchange has neither approved nor disapproved the contents of this
press release.



CAUTIONARY STATEMENTS

Certain statements regarding Yoho Resources Inc. including management’s assessments of future plans and
operations, may constitute forward-looking statements under applicable securities laws and necessarily involve
known and unknown risks and uncertainties, most of which are beyond Yoho's control. These risks may cause
actual financial and operating results, performance, levels of activity and achievements to differ materially from
those expressed in, or implied by, such forward-looking statements.

Such factors include, but are not limited to: the impact of general economic conditions in Canada and the
United States; industry conditions including changes in laws and regulations including adoption of new
environmental laws and regulations, and changes in how they are interpreted and enforced; competition; the
lack of availability of qualified personnel; fluctuations in commodity prices; the results of exploration and
development drilling and related activities; imprecision in reserve estimates; the production and growth
potential of Yoho's various assets; fluctuations in foreign exchange or interest rates; the ability to access
sufficient capital from internal and external sources; and obtaining required approvals of regulatory authorities.

Accordingly, Yoho gives no assurance nor makes any representations or warranty that the expectations
conveyed by the forward-looking statements will prove to be correct and actual results may differ materially
from those anticipated in the forward looking statements. Yoho undertakes no obligation to publicly update or
revise any forward-looking statements.

Disclosure provided herein in respect of barrels of oil equivalent (boe) may be misleading, particularly if used
in isolation. A boe conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method
primarily at the burner tip and does not represent a value equivalency at the wellhead.