Calgary, Alberta – August 19, 2009 - Yoho Resources Inc. (“Yoho” or the “Company”) filed today the
interim unaudited consolidated financial statements for the nine months ended June 30, 2009 and
related Management’s Discussion and Analysis on www.sedar.com.
- Increased production 31% to 2,682 boe per day for the three months ended June 30, 2009 from
2,041 boe per day for the three months ended June 30 2008. Production for Q3 2009
increased 11% from 2,408 boe per day during Q2 2009.
- Funds from operations for the third quarter of fiscal 2009 were $2.5 million compared to $7.2
million during the third quarter of fiscal 2008. On a per share basis, funds from operations for
the three months ended June 30, 2009 were $0.12 per share diluted compared to $0.38 per
share diluted for the same period last year.
- Maintained a strong balance sheet with $24.1 million drawn at June 30, 2009 on a bank credit
facility of $32 million.
- Effective April 1, 2009, closed a property acquisition in the Howard area of Alberta for $1.8
million which added production of approximately 100 boe per day and included undeveloped
land and 2D and 3D seismic.
- Improved overall cash costs (operating, processing, G&A and interest) of $10.92 per boe for
the third fiscal quarter of 2009 compared to $13.49 per boe for the third fiscal quarter of 2008.
During the nine months ended June 30, 2009, Yoho has participated in drilling 15 (9.4 net) wells
resulting in 13 (8.0 net) gas wells and 2 (1.4 net) wells which were dry and subsequently abandoned.
Total capital expenditures for the nine months ended June 30, 2009 were $14.5 million, including the
$1.8 million property acquisition. The successful drilling activities and the property acquisition have
increased Yoho’s production 31% for the three months ended June 30, 2009 to average 2,682 boe per
day (86% natural gas), from 2,041 boe per day for the three months ended June 30, 2008. Yoho has
continued to acquire land in selective areas at crown sales, with 14 net sections added during fiscal Q3
and an additional 5 net sections added to date during fiscal Q4. The Company’s total undeveloped land
is currently 155,000 net acres. Yoho’s estimate of fiscal Q4 production is 2,400 boe per day, with
production currently impacted by plant turnarounds in various areas and the rupture of a third party
major trunk line in northern Alberta. Repairs to the pipeline are currently underway and production is
anticipated to be restored in early September 2009.
Funds from operations for the third quarter of fiscal 2009 of $2.5 million compared to $7.2 million during
the third quarter of fiscal 2008, with the 31% increase in production offset by a 69% decrease in natural
gas prices received. During the quarter ended June 30, 2009, the Company received $3.28 per mcf for
natural gas compared to $10.63 per mcf during the quarter ended June 30, 2008. On a per share
basis, funds from operations for three months ended June 30, 2009 was $0.12 per share diluted
compared to $0.38 per share diluted for the same period last year. Yoho continued to improve overall
costs, with cash costs (operating, processing, G&A and interest) of $10.92 per boe for the third fiscal
quarter of 2009 compared to $13.49 per boe for the third fiscal quarter of 2008.
With reduced natural gas prices, Yoho’s capital program for fiscal 2009 will total between $15 and $16
million. During the fourth fiscal quarter, Yoho will continue to focus on land acquisition and the
evaluation of both property and corporate acquisitions. The Company is preparing for the upcoming
winter drilling season and is reviewing capital allocation by province in light of recent royalty
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
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this 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.
This forward-looking information represents our views as of the date of this document and such information should
not be relied upon as representing our views as of any date subsequent to the date of this document. We have
attempted to identify important factors that could cause actual results, performance or achievements to vary from
those current expectations or estimates expressed or implied by the forward-looking information. However, there
may be other factors that cause results, performance or achievements not to be as expected or estimated and that
could cause actual results, performance or achievements to differ materially from current expectations. There can
be no assurance that forward-looking information will prove to be accurate, as results and future events
could differ materially from those expected or estimated in such statements. Accordingly, readers should
not place undue reliance on forward-looking information. While we anticipate that subsequent events and
developments may cause our views to change, we do not have an intention to update this forward-looking
information, except as required by applicable securities laws.
In conformity with National Instrument 51-101, Standards for Disclosure of Oil and Gas Activities (“NI 51-101”),
natural gas volumes have been converted to barrels of oil equivalent (“boe”) using a conversion rate of six
thousand cubic feet of natural gas to one barrel of oil. This ratio is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Readers
are cautioned that the term “boe” may be misleading, particularly if used in isolation.
NON-GAAP FINANCIAL MEASURES
The terms “funds from operations”, “funds from operations per share”, and “cash costs” do not have any
standardized meaning prescribed by Canadian GAAP. Management uses funds from operations and funds from
operations per share to analyze operating performance and leverage and considers funds from operations to be a
key measure as it demonstrates the Company’s ability to generate the cash necessary to fund future capital
investments and to repay debt. Funds from operations should not be considered an alternative to, or more
meaningful than cash flow from operating activities as determined in accordance with Canadian GAAP as an
indicator of the Company’s performance. Therefore references to funds from operations or funds from operations
per share (basic and diluted) may not be comparable with the calculation of similar measures for other entities.
Yoho calculates funds from operations per share using the same method used in the determination of net income
Yoho also uses “operating netbacks”, “cash costs” and per boe metrics as key performance indicators. These
terms do not have a standardized meaning prescribed by Canadian GAAP and therefore may not be comparable
with the calculation of similar measures by other companies. Management considers netbacks an important
measure as it demonstrates its profitability relative to current commodity prices. The Company uses this measure
to help evaluate its performance.