Yoho Resources Inc. Announces Fiscal Q1 2013 Financial and Operating Results
Calgary, Alberta – February 27, 2013 - Yoho Resources Inc. (“Yoho” or the “Company”) (TSXV:YO) has filed today on SEDAR the financial statements for the three months ended December 31, 2012 and the related managements’ discussion and analysis. Copies of these documents may be found on www.sedar.com.
- Yoho’s production during fiscal Q1 2013 averaged 2,075 boe per day. With recent drilling success at Kaybob, Yoho has an incremental 1,500 boe per day of production scheduled to come on-stream in March 2013.
- Yoho generated funds from operations for fiscal Q1 2013 of $2.9 million ($0.06 per share basic and diluted).
- Field net-backs for the Company’s Duvernay wells were $39.61 per boe during fiscal Q1 2013.
- Net exploration and development expenditures for Q1 fiscal 2013 were $14.1 million. During the first quarter, Yoho drilled 2 (1.5 net) high liquids yield natural gas wells.
- The Company maintained a flexible balance sheet with total net debt of $29.2 million at December 31, 2012. The bank credit facility was increased in January 2013 to $56 million from $52 million.
At Kaybob, the recently drilled Duvernay wells at Tony Creek (press release February 4, 2013) along with the 13-22 well at Tony Creek are expected to be placed on-stream during March 2013. Production startup from the Tony Creek block has been delayed by approximately 6 to 8 weeks due to unforeseen pipeline repairs to the third party main lateral which leads into the SemCams facility which the Tony Creek wells are tied into. The two recently drilled wells further solidify Yoho's view that the Company’s entire land base at Kaybob is prospective for production from the Duvernay
formation. Yoho currently has an inventory of 145 net Duvernay development locations at Kaybob. The high liquids content of the Company’s natural gas production (100 - 160 barrels per Mmcf) from the Duvernay formation makes this play's economics extremely attractive at current commodity prices. The liquids blend is 60% to 65% C5+ with the balance comprised of propane and butane. The three wells at Tony Creek, expected to be on-stream by mid-March 2013, will add an estimated 1,500 boe per day (2,300 boe per day gross) of production (initial stabilized rate – first month average production rate) which is expected to increase Yoho’s production to over 3,000 boe per day. Yoho expects to continue to produce these wells until May 2013, at which time they will be shut-in for approximately one month due to turnaround and maintenance at the third-party processing facility which the wells are tied into. Production from the wells will resume as soon as the turnaround is completed.
For fiscal 2013, Yoho is currently planning a total capital program of between $35.0 and $38.0 million. The majority of the exploration program and related capital budget is allocated to the Duvernay at Kaybob. With the recent delays in bringing production on-stream and the scheduled turnaround at the SemCams KA gas plant in May 2013, it is estimated that Yoho’s average production for fiscal 2013 will be approximately 2,700 to 2,800 boe per day. For the remainder of fiscal 2013, Yoho plans to drill 4 (2 net) horizontal wells from two separate pad sites at Kaybob. Activity levels for fiscal 2013 will continue to be monitored to align capital expenditures with expected cash flow and available credit lines. There are no impending land expiry issues at Kaybob in fiscal 2013. Yoho has the cash flow and available bank lines to fund planned activity in 2013 and exit the year without impairing the balance sheet.
Yoho Resources Inc. is a Calgary based junior oil and natural gas company with operations focusing in West Central 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, CAVice President, Finance and CFOYoho Resources Inc.Phone: 403-537-1771www.yohoresources.ca
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.
Special Note Regarding Forward-Looking Information
In the interest of providing readers with information regarding Yoho, including management's assessment of the future plans and operations of Yoho, certain statements contained in this news release constitute forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable securities legislation. Forwardlooking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "potential", "target" and similar words suggesting future events or future performance. In particular, this news release contains, without limitation, forward-looking statements pertaining to: the Company’s intentions in respect of enhanced development operations at Kaybob, Yoho's planned capital expenditure program for the remainder of fiscal 2013, including the estimated budget and the allocation of capital to the Kaybob Duvernay area and the Nig area in fiscal 2014; Yoho's estimated average production levels for fiscal 2013 and estimated average production volumes for fiscal Q3 2013; Yoho's drilling plans for the remainder of calendar 2013 and fiscal 2014; and the sufficiency of funds, including cash flows and bank debt, to fund Yoho's anticipated capital program and other matters set forth in the “Outlook” section of this news release. Readers are cautioned that assumptions used in the preparation of such information may prove to be incorrect.
With respect to forward-looking statements contained in this document, Yoho has made a number of assumptions. The key assumptions underlying the aforementioned forward-looking statements include assumptions that: capital and skilled personnel will continue to be available at the level Yoho has enjoyed to date; Yoho will be able to obtain equipment in a timely manner to carry out exploration, development and exploitation activities; production rates for fiscal 2013 will be in line with the Company's estimates and type curves; Yoho will have sufficient financial resources (including cash flows and bank debt) with which to conduct its anticipated capital program; the current tax and regulatory regime will remain substantially unchanged; future commodity prices will be consistent with the Company's current pricing assumptions; pipeline, processing and other third party facility issues will not persist for time periods which may have an adverse affect on the Company’s plans as forecast; that Yoho will continue to conduct its operations in a manner consistent with past operations; the impact of increasing competition; and the ability of Yoho to add production and reserves through development and exploitation activities. Although Yoho believes that the expectations reflected in the forward-looking statements
contained in this news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this news release, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur.
By their nature, forward looking statements involve numerous risks and uncertainties that contribute to the possibility that predictions, forecasts, projections and other forward-looking statements will not occur, which may cause Yoho's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These 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; environmental risks; the inability to access credit and other debt facilities; inability to obtain drilling rigs or other services; capital expenditure costs, including drilling, completion and facility costs; unexpected decline rates in wells; wells not performing as expected; 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, the United States and overseas; 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. Readers are cautioned that the foregoing list of factors is not exhaustive.
Yoho's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forwardlooking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Additional information on these and other factors that could affect Yoho’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or Yoho’s website (www.yohoresources.ca).
The forward-looking statements contained in this document 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.
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.