Calgary, Alberta – March 30, 2010 - Yoho Resources Inc. (“Yoho” or the “Company”) is pleased to provide an operational update with respect to recent drilling activity.
From October 1, 2009 to March 29, 2010, Yoho drilled 6 (5.1 net) gas wells with a 100% success rate. In addition, Yoho has also participated in drilling four non-operated CBM wells at an average working interest of 2% and holds a gross overriding interest in two additional gas wells which were drilled during the period.
Yoho has completed the drilling of a 2,500 metre test well (1.0 net) in the Mike/Pickell area targeting the Jean Marie formation. This vertical well has been completed and tested natural gas at a stabilized rate of 800 mcf per day on a 24 hour production test. The well is currently being tied into existing facilities and is anticipated to be on production in early April 2010. This well is the second successful Jean Marie vertical well drilled on Yoho lands in the Mike/Pickell area. The Jean Marie reservoir in the Mike area is substantially over pressured. With the success of this well and the corresponding increase in the known areal extent of the reservoir, Yoho will proceed with plans for development of the pool utilizing horizontal drilling technology. Yoho has accumulated a total of 26 sections of land on this unconventional resource play at an average working interest of 92 %.
Also at Mike/Pickell, Yoho has completed a three well development program targeting the Notikewin formation. The three gas wells (3.0 net) have been placed on production in late March 2010 at a combined rate of 1.9 Mmcf per day.
At Kaybob, Yoho drilled a vertical Notikewin gas well (0.3 net) which was placed on production during March 2010 at a gross rate of 800 mcf per day. Additional wells at Kaybob are currently planned to be drilled this summer and fall.
At Buick Creek, the previously announced horizontal gas well (0.8 net) drilled utilizing underbalanced drilling technology was placed on production during February 2010 at a rate of 2.0 Mmcf per day. The Company plans to drill several follow up locations to this well during 2010 at various working interests.
Yoho has also been active at recent Crown land sales in both British Columbia and Alberta and continues to build drilling inventory for both conventional and unconventional resource projects.
On March 22, 2010, Yoho closed its recently announced bought deal financing of 2,875,000 common shares at an issue price of $2.70 per common share and 1,500,000 Common Shares issued on a "flow through" basis at an issue price of $3.25 per Flow-Through Share for aggregate gross proceeds of $12,637,500, the proceeds of which have been initially used to reduce Yoho's existing bank indebtedness. The Company is currently reviewing expansion of its fiscal 2010 capital budget in light of the successful winter drilling program. Yoho will incorporate recent commodity prices in capital allocation decisions.
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.
Forward-looking information and statements
This news release contains certain forward-looking statements, which include the use of proceeds from the Offering and timing of renunciation of flow through expense. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Yoho's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Yoho's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits, including the amount of proceeds, that Yoho will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Yoho or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Yoho does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be 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.