Calgary, Alberta – August 22, 2007 - Yoho Resources Inc. (“Yoho” or the “Company”) filed today
unaudited interim consolidated financial statements for the three and nine months ended June 30,
2007 and related Management’s Discussion and Analysis on www.sedar.com.
- Yoho’s third fiscal quarter production averaged 1,578 boe per day (83% natural gas), a
94% increase from 812 boe per day for the corresponding quarter a year ago and a 17%
increase from 1,345 boe per day in the second fiscal quarter. Production for the first three
quarters of fiscal 2007 averaged 1,247 boe per day.
- As a result of increased production, funds from operations for the third fiscal quarter
increased 71% to $3.0 million from $1.8 million last year and increased 16% from $2.6
million during the second fiscal quarter. For the fiscal year to date, funds from operations
were $7.2 million, a 68% increase from $4.3 million a year ago.
- On a per share basis, funds from operations for the third fiscal quarter increased 112% to
$0.17 per share diluted from $0.08 per share diluted last year and increased 21% from
$0.14 per share during the second fiscal quarter. Funds from operations for the nine
months ended June 30, 2007 were $0.42 per share diluted, an increase of 40% from $0.30
per share diluted in fiscal 2006.
- Yoho’s current production (August 2007) is approximately 1,700 boe per day. Yoho has an
additional 250 boe per day estimated production from three wells awaiting tie-in and facility
approvals. Two of the three wells are expected to be tied in and on production in
September 2007, with the remaining well expected to be tied in and on production by the
end of the calendar year.
- During the third fiscal quarter Yoho completed tie-in and facilities projects on two wells
adding production of approximately 370 boe per day. Yoho also participated in the drilling
of one (0.5 net) gas well which is expected to begin production in September 2007.
Exploration and development capital expenditures for the three months ended June 30,
2007 were $4.0 million and year to date in fiscal 2007 were $15.6 million
To July 31, 2007, the Company has participated in 18 (9.3 net) wells, with a 70% success ratio on a
net basis. Of the 18 wells drilled, 67% were classified as exploration wells.
Fiscal 2007 Drilling Results to May 22, 2007
In the fourth fiscal quarter of 2007 the Company expects to drill three or four exploration wells and
complete tie-in and facilities projects on three wells drilled earlier in the year.
Yoho has continued to add to its inventory of land and seismic. The Company currently has over
86,000 net acres of undeveloped land, 1,600 km of 2D seismic and 290 km2 of 3D seismic which
provides a solid inventory of prospects and opportunities.
Total capital expenditures for fiscal 2007 are expected to be $21 to $22 million. At June 30, 2007,
Yoho had drawn $15.9 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.
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.