Calgary, Alberta - March 14, 2011 - Yoho Resources Inc. (“Yoho” or the “Company”) is pleased to provide an update on its winter drilling program.
Mike/Pickell, British Columbia
At Mike/Pickell, British Columbia, Yoho drilled the a-B21-I/94-H-3 well targeting the Jean Marie formation. The well (85% net) was drilled in January 2011 to a total measured depth of 4,424 metres with a 1,856 metre horizontal section. It was completed in the open hole section with a nitrified acid stimulation and on clean-up flowed back up 177.8mm (7”) production casing at rates as high as 9.4 Mmcf per day (264 e3m3 per day). Production tubing was subsequently snubbed-in and bottom hole pressure recorders landed.
The well was then production tested over a 40 hour period at various pressures and rates as high as 7.4 Mmcf per day (208 e3m3 per day) with a final rate of 3.7 Mmcf per day (105 e3m3 per day) at a stabilized pressure of 1,822 psi (12,562 kPa) on a 7.94 mm (20/64”) choke setting. The well is currently shut-in on build-up and is expected to be tied-in before the end of April 2011.
Yoho has accumulated 22,000 net acres of land adjacent to this well. The successful application of horizontal technology in this tight gas formation will now allow Yoho to establish a comprehensive development plan for the Jean Marie on the Company’s extensive land base in the area.
At Kaybob, Alberta, Yoho participated in the drilling of two vertical wells targeting the Duvernay formation, both of which completed drilling in February 2011. These two vertical wells were drilled under farm-in agreements and earned an additional 16 (5.7 net) sections of Duvernay rights. Yoho now holds 45 (15.6 net) sections of land in this unconventional gas and liquids play.
Yoho also participated in the drilling of a horizontal well at Kaybob targeting the Duvernay formation. Completion operations on this well are anticipated to begin in the next ten days, with results expected during April 2011.
Umbach, British Columbia
At Umbach, British Columbia, Yoho has recently completed a 48 section pooling agreement. Yoho now holds a 52% working interest in 50 sections of Montney rights. The Company’s first well to test the Montney formation will be a horizontal re-entry well and field operations on this well are expected to begin in the later part of March 2011.
Yoho is currently planning a capital program for fiscal 2011 of between $28 and $29 million. With the continued volatility in commodity prices, the activity levels for fiscal 2011 will be closely monitored and adjusted based on cash flow levels. Yoho has also closed an equity financing in February 2011 for total gross proceeds of $12 million. Capital expenditures will also be adjusted subject to the results from several of Yoho’s larger unconventional projects
Forward-looking information and statements
This news release contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", “schedule”, "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this news release contains forward-looking information and statements pertaining to the following: the estimated volumes associated with certain of Yoho’s wells; Yoho’s development plans on certain of its properties; estimates of timing for tie-in of certain gas wells; completion operations on certain of its gas wells and the drilling of a horizontal re-entry well in Umbuch; the life of Yoho's reserves.
In addition, forward-looking statements or information are based on a number of material factors, expectations or assumptions of Yoho which have been used to develop such statements and information but which may prove to be incorrect. Although Yoho believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Yoho can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which Yoho operates; the timely receipt of any required regulatory approvals; the ability of Yoho to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which Yoho has an interest in to operate the field in a safe, efficient and effective manner; the ability of Yoho to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Yoho to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Yoho operates; and the ability of Yoho to successfully market its oil and natural gas products.
The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statements; including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward-looking information or statements including, without limitation: changes in commodity prices; changes in the demand for or supply of Yoho's products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Yoho or by third party operators of Yoho's properties, increased debt levels or debt service requirements; inaccurate estimation of Yoho's oil and gas reserve and resource volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of inadequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Yoho's public disclosure documents, (including, without limitation, those risks identified in this news release and Yoho's Annual Information Form).
The forward-looking information and statements contained in this news release speak only as of the date of this news release, and Yoho does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Yoho Resources Inc. is a Calgary based junior oil and natural gas company with operations focusing in northeast British Columbia, West Central Alberta and the Peace River Arch of Alberta. 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, CA
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.