Calgary, Alberta – August 20, 2008 - Yoho Resources Inc. (“Yoho” or the “Company”) filed today
the interim unaudited consolidated financial statements for the three months and nine months
ended June 30, 2008 and related Management’s Discussion and Analysis on www.sedar.com.
- Completed the acquisition of Vision 2000 Exploration Ltd. (“Vision”) for a total acquisition
cost of $7.6 million, adding production of 260 boe per day and reserves of 625.5 Mboe at
- Increased production 29% to 2,041 boe per day for the three months ended June 30, 2008
from 1,578 boe per day for the three months ended June 30, 2007.
- Funds from operations for the third quarter of fiscal 2008 increased 138% to $7.2 million
from $3.0 million during the third quarter of fiscal 2007. On a per share basis, funds from
operations for three months ended June 30, 2008 increased 112% to $0.36 per share
diluted from $0.17 per share diluted last year.
- Strengthened the balance sheet at June 30, 2008 by repaying the outstanding short term
loan facility, resulting in total net debt of 0.7 times annualized Q3 funds from operations.
• Drilled 12 (9.5 net) wells to date in fiscal 2008, resulting in 9 (7.0 net) gas wells and 3 (2.5
net) wells which were subsequently abandoned.
Acquisition of Vision
On June 3, 2008, Yoho completed the acquisition of Vision 2000 Exploration Ltd. The total
purchase price was $7.6 million and added production of 260 boe per day, 625.5 Mboe of reserves
and 21,000 net acres of undeveloped land. The resulting acquisition metrics of the Vision
transaction were $12.20 per boe of reserves and $29,400 per flowing boe. In July, 2008, Yoho has
drilled its first well on the Vision lands, a successful gas well which production tested at 1.0 Mmcf
per day. This well is currently being tied in and will be on production for September deliveries.
Yoho’s production for the three months ended June 30, 2008 averaged 2,041 boe per day (86%
natural gas), a 29% increase from 1,578 boe per day for the three months ended June 30, 2007.
Of the increase for the quarter, 78 boe per day can be attributed to the acquisition of Vision with the
remaining increase the result of successful drilling activities during the year. Production for the nine
months ended June 30, 2008 increased 53% to average 1,909 boe per day compared to 1,247 boe
per day for the same period last year. Current production for August, 2008 is estimated at 2,350
boe per day.
As a result of increased production and stronger commodity prices, funds from operations for the
third quarter of fiscal 2008 increased 138% to $7.2 million from $3.0 million during the third quarter
of fiscal 2007. On a per share basis, funds from operations for three months ended June 30, 2008
increased 112% to $0.36 per share diluted from $0.17 per share diluted last year. Funds from
operations for the nine months ended June 30, 2008 were $15.1 million ($0.81 per share diluted), a
110% increase from $7.2 million ($0.42 per share diluted) during the same period last year.
Yoho also strengthened the balance sheet at June 30, 2008 by repaying the outstanding short term
loan facility. The bank credit facility was also increased in June, 2008 by $3 million to $30 million.
At June 30, 2008, $18.7 million has been drawn on the bank credit facility.
Yoho has reviewed its capital program in light of the recent increases in the Company’s production
and plans on spending up to $20 million during fiscal 2008, with 5 additional wells to be drilled
before fiscal year end of September 30, 2008.
The preliminary fiscal 2009 capital budget has been set at $25 to $30 million and includes drilling
26 to 31 gross wells with an average 72% working interest. Production for fiscal 2009 is budgeted
to average 2,500 to 2,600 boe per day. The Company expects to fund a substantial portion of this
program with funds from operations. This fiscal 2009 budget has been based on a natural gas
price of $8.50 per GJ at AECO and includes the impact of the changes in Alberta crown royalties
beginning in January 2009. Natural gas prices remain a large variable in our outlook for fiscal 2009
and the Company has flexibility in the budget to accelerate or reduce capital programs accordingly
with changes in natural gas pricing and related cash flows. 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.
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.