Yoho Resources Inc. Announces Fiscal Q3 2014 Financial Results
Calgary, Alberta – August 27, 2014 - Yoho Resources Inc. (“Yoho” or the “Company”) has filed today on SEDAR the financial statements for the three and nine months ended June 30, 2014 and the related managements’ discussion and analysis ("MD&A"). Copies of these documents may be found on www.sedar.com.
- Yoho’s production during fiscal Q3 2014 averaged 1,563 boe per day (27% oil and natural gas liquids (“NGL”)). Production for fiscal Q3 was negatively impacted by infrastructure issues in the Kaybob area, which are expected to be resolved by early September 2014 at which time Yoho’s Duvernay production will be restored to 100% of capacity. Yoho estimates that current production capability for the company to be approximately 2,400 – 2,500 boe per day, consisting of 1,200 boe per day of conventional production and 1,200 - 1,300 boe per day of Duvernay production.
- Yoho generated funds from operations for fiscal Q3 2014 of $2.2 million ($0.04 per share basic and diluted). Operating netbacks for fiscal Q3 2014 were $24.44 per boe.
- Total exploration and development expenditures for the first nine months of fiscal 2014 were $25.1million and included the costs for drilling 5 (2.8 net) and completing 2 (0.8 net) gas wells. The two wells that were completed in fiscal Q3 came on production during fiscal Q4.
- Total net debt was $12.3 million at June 30, 2014.
- For fiscal 2015, Yoho plans to participate in up to 8 (3.5 net) Kaybob horizontal wells targeting the Duvernay Formation, the details of which are currently being finalized. Yoho has demonstrated thatrecent changes to completion methodology have been very successful and will utilize this methodologywhere applicable in the upcoming drilling program.
During fiscal Q3, Yoho continued with its Duvernay drilling program with results previously press released on July 9, 2014. The 16-04-62-21 W5 well (50% working interest) was placed on production August 8, 2014 for 5 days before being shut-in for the SemCams KA gas plant turnaround. Over the 95 hour flow period, the well produced a cumulative 7.1 MMcf natural gas and 1,922 barrels of condensate and NGL, which equates to a daily rate of 780 (390 net) boe per day (270 barrels of NGL per MMcf). Approximately 68% of the NGL produced from the 16-04 well was condensate. During this initial flow period, the 16-04 well was flowing at an average tubing pressure of 38,000 kPa. The 16-02-60-19 W5 (33.33% working interest) was placed on-stream July 21, 2014 for a period of 23 days. Over this time, the well averaged 600 (200 net) boe per day consisting of 2.0 MMcf per day and 267 barrels per day of NGL. Approximately 65% of the NGL produced from the 16-02 was condensate. With over 200 Duvernay wells drilled or licensed in the general Kaybob area, significant infrastructure activity is underway in the area. New gas plants have recently been constructed and upgrades are being made to existing gas plants, roads and pipelines. As a result of this infrastructure activity and both planned and unplanned
maintenance issues on existing gas plants and pipelines, Yoho has experienced a substantial amount of shutin time for existing Duvernay production during the period from May to September 2014. These restrictions have also delayed on-stream dates for recently drilled wells. Yoho expects that these temporary shut-in issues, which include the Pembina Pipelines liquids system, TransCanada Pipelines, and SemCams K3 and SemCams KA gas plant turnarounds, will all be resolved by early September 2014 at which time Yoho’s Duvernay production will be restored to 100% of capacity. Yoho estimates that current production capability for the Company to be approximately 2,400 – 2,500 boe per day, consisting of 1,200 boe per day of conventional production and 1,200 - 1,300 boe per day of Duvernay production.
For fiscal 2014, Yoho is currently planning a total capital program of between $30.0 and $32.0 million, a decrease of $10 million from the previous estimated capital of between $40 and $42 million as wells which were expected to be drilled in fiscal Q4 have been delayed to early fiscal 2015. Yoho estimates that, due to the previously mentioned production restrictions and delays in anticipated on-stream dates of non-operated Duvernay wells,
overall production for fiscal 2014 will average approximately 1,700 boe per day with cash flow estimated between $11.0 and $12.0 million, with debt at fiscal year-end estimated at $14.5 - $15.5 million. For fiscal 2015, Yoho plans to participate in up to 8 (3.5 net) Kaybob horizontal wells targeting the Duvernay Formation, the details of which are currently being finalized. Yoho has demonstrated that recent changes to completion methodology have been very successful and will utilize this methodology where applicable in the upcoming drilling program. Yoho is also planning to drill at least one horizontal well at Inga, British Columbia, targeting the Montney formation.
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”.
For more information please contact:
Wendy S. Woolsey, CA
Vice President, Finance and CFO
Yoho Resources Inc.
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
Certain information regarding Yoho set forth in this news release, including (among other things) the Company's expected timing for the resolution of maintenance issues at certain facilities in the Kaybob area; Yoho’s estimated production rate once all Duvernay wells are on production; and those matters set forth under the heading "Outlook", may constitute forward-looking statements under applicable securities laws and necessarily involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Yoho's control, including without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, longer turnaround times for the maintenance at certain facilities in Kaybob than estimated herein; volatility in production rates, environmental risks, 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 third party and regulatory approvals, 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, and the uncertainty of estimates and projections of production, costs and expenses.
With respect to forward-looking statements contained in this news release, Yoho has made a number of assumptions. The key assumptions underlying the aforementioned forward-looking statements include assumptions regarding (among other things): the impact of increasing competition; the turnaround times of the facilities in the Kaybob area; the general stability of the economic and political.