Calgary, Alberta - May 25, 2011 - Yoho Resources Inc. (“Yoho” or the “Company”) filed today the
interim unaudited consolidated financial statements for the six months ended March 31, 2011 and
related Management’s Discussion and Analysis on www.sedar.com.
- Production for the three months ended March 31, 2011 was 2,472 boe per day. Production for
the quarter was impacted by disruptions at third-party processing facilities. Yoho’s current
estimated production is approximately 2,850 boe per day with the alleviation of recent production
interruptions caused by the recent forest fires in the Kaybob area.
- Net exploration and development expenditures for the first six months of fiscal 2011 were $23.4
- Generated funds from operations for fiscal Q2 2011 of $3.4 million ($0.09 per share diluted).
- Closed an equity issue in February 2011 for total gross proceeds of $12.0 million.
- Maintained a flexible balance sheet with total net debt of $18.5 million at March 31, 2011 with a
bank credit facility of $34 million.
During fiscal Q2, Yoho continued to move forward with the three unconventional resource style projects
that the Company has been able to develop over the last 12 to 18 months.
During fiscal Q2, Yoho participated at a one-third working interest in the drilling and completion
operations for the second horizontal well targeting the Devonian Duvernay shale formation. The well
(the “3-13 well”) was drilled to a bottom hole location at 03-13-060-20W5 and completed using a 12
stage “plug and perf” horizontal completion technique, incorporating perforation clusters (2 and 3 per
stage) to stimulate the well. The 3-13 well was placed on production during April 2011 at several
restricted rates to determine a variety of reservoir parameters at different flowing conditions. Also
during April 2011, the first horizontal Duvernay well (the “15-33 well”), which was drilled in fall 2010,
was placed on production at initial rates exceeding 500 boe per day with very high associated liquids
production. The natural gas liquids content of the 15-33 well is similar to the 3-13 well and both exceed
original expectations for liquid-to-gas ratios.
The Company also participated in two vertical wells targeting the Duvernay shale as part of farm-in
agreements to earn working interests in additional land. The first vertical well (26.0%) was drilled,
cored, logged and cased with 7 inch casing which would allow the drilling of a horizontal section at a
later date. The second vertical well (50%) was drilled, cored, logged and completed to determine both
the liquids content of the gas and the reservoir pressure in that geographic location.
Yoho is extremely encouraged by the production results from both of the horizontal Duvernay shale
wells, particularly the high liquids content associated with the natural gas given the current premium in
pricing for natural gas liquids. Production from the two Duvernay horizontal wells will be monitored and
Yoho will review additional drilling locations with its partners. Yoho currently has working interests in
50.5 gross (17.7 net) sections of land with Duvernay rights in the Kaybob area along this liquids rich
Mike, British Columbia
During fiscal Q2, Yoho drilled the a-B21-I/94-H-3 well targeting the Jean Marie formation. It was
completed in the open hole section with a nitrified acid stimulation. The well is was tied-in and place on
production during April 2011 at an initial stable rate of 3.0 Mmcf per day. 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.
Umbach, British Columbia
Yoho’s first well to test the Montney formation at Umbach was a horizontal re-entry well. A 1,050 metre
horizontal section was drilled during Q2 with excellent penetration rates and substantial mud gas shows
through the entire horizontal section. The well will be completed using a multi-stage “plug and perf”
horizontal completion technique. Completion operations are expected to begin before the end of May
2011. Yoho currently holds a 50% working interest in 52 sections of land at Umbach.
Yoho is extremely pleased with the results to date of the unconventional resource style projects that
were tested during fiscal Q2. The Company will continue to monitor production from both the Mike
Jean Marie well and from both horizontal Duvernay wells and will await the results of the completion of
the Umbach well to determine capital expenditures for the balance of fiscal 2011. These results will
also build the basis for the Company’s fiscal 2012 business plan.
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 volumes and estimated value of Yoho's oil and gas reserves; the life of Yoho's reserves;
resource estimates; the volume and product mix of Yoho's oil and gas production; future oil and natural
gas prices and Yoho's commodity risk management programs; future liquidity and financial capacity;
future results from operations and operating metrics; future costs, expenses and royalty rates; future
interest costs; the exchange rate between the $US and $Cdn; future development, exploration,
acquisition and development activities and related capital expenditures; the number of wells to be
drilled and completed; the amount and timing of capital projects; operating costs; the total future capital
associated with development of reserves and resources; and forecast reductions in operating
The recovery, reserve and resources estimates of Yoho's reserves and resources provided herein are
estimates only and there is no guarantee that the estimated reserves or resources with be recovered. 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.