Yoho Resources Inc.
TSX VENTURE : YO

Yoho Resources Inc.

October 03, 2007 17:02 ET

Yoho Resources Inc. Announces Capital Budget for Fiscal 2008 and Operational Update for the 2007 Fiscal Year

CALGARY, ALBERTA--(Marketwire - Oct. 3, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Yoho Resources Inc. (TSX VENTURE:YO) ("Yoho" or the "Company") is pleased to provide an operational update for its fiscal year ended September 30, 2007 and to announce its fiscal 2008 capital budget.

- Yoho's production is currently 1,800 boe per day (83% natural gas), an increase of 80% compared to production a year ago. An additional 100 boe per day estimated net production is awaiting tie-in and is expected to be on production by the end of the calendar year. As the result of lower natural gas prices in the latter part of fiscal 2007, the Company has spent $6 million less capital in fiscal 2007 than originally budgeted. Yoho was able to achieve an exit rate in excess of 1,800 boe per day for fiscal 2007 and is on track to reach the previously announced calendar 2007 exit rate of 2,000 boe per day despite the reduced capital program.

- Yoho is currently planning a capital program of between $17 and $19 million for fiscal 2008. The Company plans on drilling between 18 (13.5 net) and 20 (15.4 net) wells for the period from October 1, 2007 to September 30, 2008. The budget has been allocated as follows: $11.7 to $13.7 million for drilling, completion and equipment and $5.3 million for land and seismic.

- Based on the capital budget, Yoho is estimating production between 2,300 and 2,400 boe per day at the exit of fiscal 2008.

- The 2008 capital budget is based on average natural gas price of $6.25 per GJ at AECO. Although Yoho is reviewing various hedging strategies to manage commodity price risk, substantial variation from these current commodity prices may cause decreased or increased activity by the Company.

The Company will continue to evaluate potential corporate and property acquisition opportunities; however, no acquisitions are currently included in the 2008 fiscal budget. Yoho has a significant inventory of properties and capital projects beyond the current budget activity and will continue to "high-grade" future opportunities. The Company has flexibility in the current budget to accelerate or reduce capital programs accordingly with changes in natural gas pricing and related cash flows.

Operations

To September 30, 2007, the Company has participated in 20 (10.2 net) wells, with a 61% success ratio on a net basis. Of the 20 wells drilled, 70% were classified as exploration wells.



Fiscal 2007 Drilling Results
(October 1, 2006 to September 30, 2007)
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Gross Net
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Oil 1 0.5
Gas 10 5.7
D&A 9 4.0
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Total 20 10.2
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Yoho has continued to add to its inventory of land and seismic. The Company currently has over 111,000 net acres of undeveloped land, 1,600 km of 2D seismic and 290 km2 of 3D seismic which provides a solid inventory of prospects and opportunities.

Yoho Resources Inc. is a Calgary based junior oil and natural gas company with operations focusing in the northwest 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".

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.

CAUTIONARY STATEMENTS

Certain statements regarding Yoho Resources Inc. including management's assessments of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Yoho's control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements.

Such factors include, but are not limited to: the impact of general economic conditions in Canada and the United States; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced; competition; the lack of availability of qualified personnel; fluctuations in commodity prices; the results of exploration and development drilling and related activities; imprecision in reserve estimates; the production and growth potential of Yoho's various assets; fluctuations in foreign exchange or interest rates; the ability to access sufficient capital from internal and external sources; and obtaining required approvals of regulatory authorities.

Accordingly, Yoho gives no assurance nor makes any representations or warranty that the expectations conveyed by the forward-looking statements will prove to be correct and actual results may differ materially from those anticipated in the forward looking statements. Yoho undertakes no obligation to publicly update or revise any forward-looking statements.

Disclosure provided herein in respect of barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily at the burner tip and does not represent a value equivalency at the wellhead.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Yoho Resources Inc.
    Wendy S. Woolsey
    Vice President, Finance and CFO
    (403) 537-1771
    Website: www.yohoresources.ca