Calgary, Alberta – October 3, 2007 - Yoho Resources Inc. (“Yoho” or the “Company”) is pleased to
provide an operational update for its fiscal year ended September 30, 2007 and to announce its fiscal 2008
- Yoho’s production is currently 1,800 boe per day (83% natural gas), an increase of 80% compared
to production a year ago. An additional 100 boe per day estimated net production is awaiting tie-in
and is expected to be on production by the end of the calendar year. As the result of lower natural
gas prices in the latter part of fiscal 2007, the Company has spent $6 million less capital in fiscal
2007 than originally budgeted. Yoho was able to achieve an exit rate in excess of 1,800 boe per
day for fiscal 2007 and is on track to reach the previously announced calendar 2007 exit rate of
2,000 boe per day despite the reduced capital program.
- Yoho is currently planning a capital program of between $17 and $19 million for fiscal 2008. The
Company plans on drilling between 18 (13.5 net) and 20 (15.4 net) wells for the period from
October 1, 2007 to September 30, 2008. The budget has been allocated as follows: $11.7 to $13.7
million for drilling, completion and equipment and $5.3 million for land and seismic.
- Based on the capital budget, Yoho is estimating production between 2,300 and 2,400 boe per day
at the exit of fiscal 2008.
- The 2008 capital budget is based on average natural gas price of $6.25 per GJ at AECO. Although
Yoho is reviewing various hedging strategies to manage commodity price risk, substantial variation
from these current commodity prices may cause decreased or increased activity by the Company.
The Company will continue to evaluate potential corporate and property acquisition opportunities; however,
no acquisitions are currently included in the 2008 fiscal budget. Yoho has a significant inventory of
properties and capital projects beyond the current budget activity and will continue to “high-grade” future
opportunities. 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.
To September 30, 2007, the Company has participated in 20 (10.2 net) wells, with a 61% success ratio on a
net basis. Of the 20 wells drilled, 70% were classified as exploration wells.
Fiscal 2007 Drilling Results
(October 1, 2006 to September 30, 2007)
Yoho has continued to add to its inventory of land and seismic. The Company currently has over 111,000
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.
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 press
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
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.