Calgary, Alberta – April 13, 2009 - Yoho Resources Inc. (“Yoho” or the “Company”) is pleased to provide an update of operations.
- Drilled 14 (9.0 net) wells to date in fiscal 2009, resulting in 12 (7.6 net) wells cased as gas wells or potential gas wells and 2 (1.4 net) wells which were abandoned.
- Successful completion of the winter drilling program has increased current production to approximately 2,750 boe per day.
To date in fiscal 2009 (October 1, 2008 to date), Yoho has drilled 14 (9.0 net) wells resulting in 12 (7.6 net) gas wells or potential gas wells and 2 (1.4 net) wells which were abandoned. At Mike in northeast British Columbia, Yoho has continued the development program of the Company’s 14,000 net acres with 200 boe per day placed on-stream in late February, 2009 as the result of successful drilling. At Howard in the south Peace River Arch, one (0.34 net) gas well was drilled and placed on production April 1, 2009 at a gross rate of 2.1 mmcf per day. Also at Howard, Yoho has recently increased its working interest in the area through the acquisition of its partner’s interest. This acquisition added approximately 100 boe per day to Yoho’s net production. At McLeod in central Alberta, one (0.5 net) gas well was drilled in fiscal 2009 and a pipeline loop was constructed to alleviate the curtailment of the three producing wells in the area. Additional wells were drilled at Boundary and at Gold Creek and completion operations on these cased gas wells will proceed with higher commodity prices.
Capital expenditures to date in fiscal 2009 are estimated at $12.0 million with an additional $1.8 million for the acquisition in the Howard area. Total debt after Yoho’s winter drilling program and our recent acquisition is currently estimated at $26.0 million on a bank line of $32.0 million. The Company anticipates current debt levels will reduce over the next six months due to higher production levels and a reduced capital program.
With reduced natural gas prices, Yoho is currently planning a capital program for fiscal 2009 of between $14 and $17 million that includes plans to drill a total of 15 (9.4 net) to 19 (11.4 net) wells for the period from October 1, 2008 to September 30, 2009.
Initial field work also began this winter on several unconventional prospects in Alberta and British Columbia that Yoho’s technical team has been working on over the last year, the drilling of which will take place subject to natural gas prices. The Company currently has plans for a 5 to 6 well summer drilling program, which will proceed in June 2009, again, subject to natural gas prices.
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 release.
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.