Calgary, Alberta – February 14, 2012 - Yoho Resources Inc. (“Yoho” or the “Company”) (TSXV:YO) is
pleased to provide an update of drilling and completion operations at Kaybob, Alberta and at Nig, British
At Kaybob, Yoho operated the drilling and completion of the Company’s fourth horizontal well (50%
working interest) targeting the Devonian Duvernay shale formation under an existing joint venture with
Celtic Exploration Ltd. (“Celtic”). The well located at 13-22-62-21 W5 was drilled to a measured depth of
4,861 metres. The horizontal lateral was 1,460 metres in length within the Duvernay shale formation.
The well was drilled and cased over 39 days at a cost of approximately $4.9 million. Well completion
operations commenced in January 2012 using a “perf and plug” completion method. The well was
fracture stimulated in 10 stages with 40 perf clusters using 1,630 tonnes of sand and 105,150 barrels
(16,717 m3) of slick water. The total estimated cost of the completion is approximately $8.6 million. As a
result, the total cost to drill, complete and test the well is estimated to be approximately $13.5 million.
Future well costs are anticipated to be reduced substantially under full development and multi-well pad
During clean-up, the well flowed at rates of up to 6.8 MMcf per day up 7” casing after which the well was
shut-in to run production tubing. The well was then tested up tubing at various gas rates between 6.0 to
7.7 MMcf per day at flowing tubing pressures of 10 to 15 MPa (1,450 to 2,174 psig). At the end of the 11
day flow period, in addition to the natural gas production, the well was producing field condensate at a
rate of 658 barrels per day (109 barrels per MMcf of raw gas). The well will be shut-in for approximately
two months to obtain pressure information and to allow the completion water to absorb into the formation.
At the end of the flow period, approximately 24,230 barrels (3,852 m3) (23%) of load water had been
recovered. As part of Yoho’s fiscal 2012 resource delineation plans, the 13-22 well was drilled over 10
miles to the north-west of the Company’s existing producing Duvernay horizontal wells. The results from
this well significantly extend the tested areal extent of Duvernay potential over Yoho’s lands.
Also in the Kaybob area, Yoho is participating in the drilling of a fifth horizontal well targeting the
Devonian Duvernay shale formation at a one-third working interest. The well, located at 13-02-60-20 W5,
is currently drilling and is expected to reach total depth by the end of February 2012. Well completion
operations are anticipated to commence during March 2012 with a production test to follow completion of
Nig, British Columbia
In November 2011, Yoho, with partner Progress Energy Resources Corp. (each with a 50% working
interest), drilled the b-16-H/94-H-4 horizontal gas well targeting the Upper Montney formation. The well
was drilled in the middle part of Yoho’s land block. In December 2011, the well was completed in the
horizontal section with a 6 stage energized slickwater fracture stimulation using a perf and plug
completion method. The well was tested up tubing over 4 days at a rate of 3.5 MMcf per day with free
condensate yields of approximately 42 barrels per day. The well is currently shut-in for pressure build-up.
At the end of the production test, approximately 4,760 barrels (757 m3) (17.6%) of completion water had
been recovered. The Company estimates that liquids production with the natural gas is expected to be in
excess of 25 barrels per MMcf, with approximately 50% of the liquids being condensate. Yoho plans to
tie-in the well and anticipates having it on production during March 2012.
In December, 2011 Yoho operated the drilling and completion of the Company’s fourth horizontal well
(50% working interest) at Nig. This well at c-29-A/94-H-4 was drilled to a total measured depth of 2,830
metres with a horizontal lateral section of 940 metres in length within the Lower Montney formation.
Completion operations on this well are currently ongoing.
To date, Yoho has completed approximately 60% of the Company’s planned fiscal 2012 capital program
of $35 to $40 million. This capital program has been specifically designed to delineate the reserve
potential and values on both of the Company’s liquids rich resource plays at Nig in the Montney and at
Kaybob in the Duvernay. With the continued volatility in commodity prices, the activity levels for fiscal
2012 will be monitored closely, particularly in light of current low natural gas pricing. The drilling program
for fiscal 2012 is expected to set up fiscal 2013 as the first year of full development at both Kaybob and
Yoho Resources Inc. is a Calgary based junior oil and natural gas company with operations focusing in
west central Alberta, the 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”.
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.
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 forwardlooking
information and statements pertaining to the following: the estimated volumes associated with certain of
Yoho’s wells; Yoho’s and its partner's development plans on certain of their properties; estimates of timing for tie-in
of certain gas wells; estimated costs associated with completing certain wells; estimated reductions in costs on
drilling and completing certain future wells; future capital spending levels and focus areas for fiscal 2012 and
2013; estimated natural gas liquids yields on a go-forward basis on certain wells; and completion and testing
operations on certain of its gas wells.
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 information provided to Yoho
by the operator is accurate and correct; 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, the ability of Yoho
and its partners to realize costs savings under multi-well pad operation scenarios and the ability of Yoho and its
partners 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, pressure declines or production declines; changes in the mix of
commodity type production associated with Yoho’s wells; 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
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 forwardlooking
statements or information, whether as a result of new information, future events or otherwise, except as may
be required by applicable securities laws.
Disclosure of Well-Flow Test Results
The Company cautions that the test results described in the press release are not necessarily indicative of long-term
performance or ultimate recovery. Additionally, as well test interpretations have not been completed on the wells
described in this press release, the results and data described in this press release should be considered preliminary
until such interpretations have been completed.
Barrel of oil equivalents or BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6
mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. Given the value ratio based on the current price of crude oil as
compared to natural gas is significantly different from the energy equivalency of 6 mcf: 1 bbl, utilizing a conversion
ratio of 6 mcf: 1 bbl may be a misleading indication of value.