Calgary, Alberta – May 22, 2008 - Yoho Resources Inc. (“Yoho” or the “Company”) filed today the
interim unaudited consolidated financial statements for the three months and six months ended
March 31, 2008 and related Management’s Discussion and Analysis on www.sedar.com.
- Yoho’s production for the three months ended March 31, 2008 averaged 1,840 boe per day
(85% natural gas), a 37% increase from 1,345 boe per day for the three months ended
March 31, 2007. Production for the six months ended March 31, 2008 increased 71% to
average 1,845 boe per day compared to 1,082 boe per day for the same period last year.
- As a result of increased production and stronger commodity prices, funds from operations
for the second quarter of fiscal 2008 increased 80% to $4.7 million from $2.6 million during
the second quarter of fiscal 2007. On a per share basis, funds from operations for three
months ended March 31, 2008 increased 79% to $0.25 per share diluted from $0.14 per
share diluted last year. Funds from operations for the six months ended March 31, 2008
were $7.9 million ($0.44 per share diluted), a 90% increase from $4.2 million ($0.25 per
share diluted) during the same period last year.
- Yoho has drilled 10 (7.8 net) wells to date in fiscal 2008, resulting in 8 (5.8 net) gas wells
and 2 (2.0 net) wells which were subsequently abandoned.
Update on the Acquisition of Vision 2000 Exploration Ltd.
On April 29, 2008, the Company mailed the offer (the “Offer”) to purchase all of the outstanding
common shares of Vision 2000 Exploration Ltd. (“Vision”). The Offer is due to expire on June 3,
2008. The acquisition is expected to add 250 boe per day additional production, predominately
from Kaybob in west-central Alberta and Knappen in south-eastern Alberta which represent two
new areas of operations for Yoho.
Yoho has reviewed its capital program in light of the recent increases in the Company’s production
and increased natural gas prices and now plans on spending up to $20 million during fiscal 2008.
This represents a $5 million increase from the previously announced $15 million capital program.
From June to September 2008, the Company is budgeting expenditures of up to $10 million
including plans to drill up to 11 (5.2 net) additional wells. The Company expects to fund a
substantial portion of this program with funds from operations.
Yoho is estimating production for the third fiscal quarter of 2008 (April to June, 2008) to average
approximately 2,000 boe per day. This estimate takes into account approximately 600 boe per day
of the Company’s production in British Columbia that will be shut-in for four weeks in June, 2008
due to a scheduled turnaround at the McMahon processing plant. As the result of successful
drilling, Yoho has an additional 400 boe per day of production that is expected to be tied in before
the end of fiscal 2008.
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.