Calgary, Alberta – May 22, 2007 - Yoho Resources Inc. (“Yoho” or the “Company”) filed today
unaudited interim consolidated financial statements for the six months ended March 31, 2007 and
related Management’s Discussion and Analysis on www.sedar.com.
- Yoho’s second fiscal quarter production averaged 1,345 boe per day (78% natural gas), a
107% increase from 649 boe per day for the corresponding quarter a year ago and a 63%
increase from 825 boe per day in the first fiscal quarter. Production for the first half of fiscal
2007 averaged 1,082 boe per day.
- As a result of increased production, funds from operations for the second fiscal quarter
increased 115% to $2.6 million ($0.14 per share diluted) from $1.2 million ($0.08 per share
diluted) last year and increased 63% from $1.6 million ($0.10 per share) during the first
fiscal quarter. Funds from operations for the six months ended March 31, 2007 were $4.2
million ($0.25 per share diluted).
- Yoho’s current production (May 2007) is approximately 1,500 boe per day with an
estimated 400 boe per day “behind pipe”. One 100% gas well (220 boe per day) has
recently received regulatory approval for compression facilities and will be on production by
the end of May 2007. The remaining behind pipe production is a combination of wells with
restricted production due to spring break-up and recently drilled wells awaiting tie-in and
facility approvals. This production is anticipated to be on-stream by July, 2007.
- Yoho has drilled 16 (8.3 net) wells to date in fiscal 2007, with a 66.3% success ratio on a
net basis. Essentially all of the Company’s drilling success to date has occurred within its
Peace River Arch core area. Exploration and development capital expenditures for the
three months ended March 31, 2007 were $6.4 million and for the first half of fiscal 2007
were $11.6 million
To May 22, 2007, the Company has participated in 16 (8.3 net) wells, with a 66.3% success ratio on
a net basis.
Fiscal 2007 Drilling Results to May 22, 2007
During the second fiscal quarter, Yoho commenced field operations on the British Columbia
properties acquired in December, 2006. The first re-completion has been successful and the
incremental production was placed on-stream during February, 2007. The Company expects to drill
approximately seven wells and recomplete four wells in British Columbia during calendar 2007, with
up to an additional seven wells to be drilled in the Peace River Arch.
Yoho has continued to add to its inventory of land and seismic. The Company currently has over
80,000 net acres of undeveloped land, 1,600 km of 2D seismic and 198 km2 of 3D seismic which
provides a solid inventory of prospects and opportunities.
Total capital expenditures for fiscal 2007 are expected to be $25 to $26 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.
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
The TSX Venture Exchange has neither approved nor disapproved the contents of this
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.