Calgary, Alberta - August 24, 2011 - Yoho Resources Inc. (“Yoho” or the “Company”) filed today the
interim unaudited consolidated financial statements for the nine months ended June 30, 2011 and
related Management’s Discussion and Analysis on www.sedar.com.
- Production for the three months ended June 30, 2011 was 2,500 boe per day. Production for the
quarter was impacted by the turnaround at the McMahon Gas Plant in British Columbia and forest
fires and extensive flooding in the Kaybob area of Alberta.
- The first two successful Duvernay horizontal wells in Kaybob, Alberta were placed on production
during fiscal Q3. The high level of associated liquids production from these wells contributed to a
$20.16 per boe operating netback for fiscal Q3, a 15% increase from $17.56 per boe in fiscal Q2
- Net exploration and development expenditures for the first nine months of fiscal 2011 were $28.1
- Generated funds from operations for fiscal Q3 2011 of $4.1 million ($0.10 per share diluted).
• Maintained a flexible balance sheet with total net debt of $20.0 million at June 30, 2011. During
Q3 the bank credit facility was increased to $40 million.
During fiscal Q3, Yoho continued to move forward with the three unconventional resource projects that
the Company has been developing.
During fiscal Q3, the first two successful horizontal wells targeting the Duvernay formation were placed
on production. Yoho has a 33 1/3% working interest in these wells and continues to be encouraged by
the production results. In particular, the natural gas liquids content of both wells exceeds the original
expectations for liquid-to-gas ratios, with condensate and pentanes comprising approximately 61% of
the natural gas liquids. 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 trend. Near term development plans
include drilling six wells and ultimate development spacing expected to be 6 to 8 wells per section.
Umbach, British Columbia
During fiscal Q3, Yoho completed its first horizontal well to test the Montney formation at Umbach. The
a-A41-A/94-H-4 well was flowed (on test) up casing at 6.3 Mmcf per day. Liquids production with the
natural gas is expected to be 30 barrels per Mmcf with approximately 40-50% of the liquids being
condensate. Tie-in operations for this well are currently underway. Yoho has accumulated 38,610
gross (20,005 net) acres of land on this Montney play. A second horizontal well is currently drilling with
plans for a total of five wells in 2012. Ultimate development well density is expected to be 4 wells per
Mike, British Columbia
During fiscal Q3, the a-B21-I/94-H-3 well targeting the Jean Marie formation was tied-in and placed on
production at an initial stable rate of 3.0 Mmcf per day. Yoho has accumulated 22,000 net acres of land
adjacent to this well. Although this successful horizontal well, along with the two existing vertical wells,
delineates a substantial development project for the Company, this area cannot currently compete for
capital allocation by the Company relative to Yoho’s liquids rich Duvernay and Montney plays. Further
development of the Jean Marie will be dependent upon natural gas pricing.
The successful drilling in 2011 of these three unconventional projects delineates a drilling inventory that
may have in excess of 250 locations under full development. The Company’s ongoing exploration and
development plan will focus on the Duvernay and Montney plays due to the high rate of natural gas
liquids associated with the gas. Yoho’s Board of Directors has approved the fiscal 2012 capital budget
which has been set at $35 to $40 million and includes the drilling of six horizontal Duvernay wells at
Kaybob, five horizontal Montney wells at Umbach and the construction of a Yoho operated 25 Mmcf per
day compressor station at Umbach. Production for fiscal 2012 is budgeted to average between 3,200
and 3,300 boe per day with exit production of between 3,700 and 3,800 boe per day. The fiscal 2012
capital program is expected to generate funds from operations of $22 to $24 million based on a natural
gas price of $3.75 per GJ at AECO and an oil price of $90.00 per barrel at Edmonton. Both natural gas
and oil prices have been adjusted in the budget for Yoho’s relative quality to posted prices. The
Company expects to fund the fiscal 2012 capital program with a combination of cash flow and the
Company’s credit facilities. With the continued volatility in commodity prices, the activity levels for fiscal
2012 will be monitored to match capital expenditures with expected cash flow and available credit lines.
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”, “budget”, "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 funds from operations; 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
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.