Yoho Resources Inc.

Yoho Resources Inc.

May 25, 2006 16:57 ET

Yoho Resources Inc. Announces Operational Update for the 2006 Fiscal Year and Filing of Financial Results for the Period Ended March 31, 2006

CALGARY, ALBERTA--(CCNMatthews - May 25, 2006) - Yoho Resources Inc. (TSX VENTURE:YO) ("Yoho" or the "Company") today reported financial and operating results for the second quarter ended March 31, 2006 on www.sedar.com.

Yoho is also pleased to announce results of its drilling program to date. Yoho has participated in 27 (10.6 net) wells, with a 62.3% success ratio on a net basis. There are an additional 5 (2.5 net) wells remaining to be drilled in the fiscal 2006 capital program.

The Company has participated in several discoveries within Yoho's core area of the Peace River Arch. In the central Peace River Arch, the Company participated at a 22.5% working interest in a gas discovery which was put on-stream in February, 2006. This well is currently producing 165 BOE per day net to the Company and follow up activity is currently underway.

The Company also has drilled a discovery located in the southern Peace River Arch. This well was completed and, although only production tested over a 24 hour period, production rates exceeded 600 BOE per day. Yoho is currently negotiating access to production facilities to accommodate this discovery and anticipates production from the well by July, 2006. Yoho will have a 70% working interest in the production from this well. Additional development activity is also currently underway on this prospect.

2006 Drilling Results

(to May 25/06)
Gross Net
Oil 6 2.9
Gas 11 3.7
D&A 8 3.4
Other 2 0.6
Total 27 10.6

Current production is approximately 750 BOE per day, up from a base of 425 BOE per day with an estimated 200 BOE per day currently behind pipe as a result of our 2006 drilling program.

Yoho anticipates existing its fiscal year at September 30, 2006 with production rates of between 1,000 to 1,100 BOE per day. Due to delays in tieing in production through third-party facilities, the average production rate budget for fiscal 2006 has been revised downwards by 100 BOE per day to approximately 700 BOE per day.

Yoho expects to spend $22 to $23 million for fiscal 2006, slightly higher than the previously announced $20 million, due to increased activity and substantially higher costs for field services experienced during the year.

Yoho has continued to invest in "up front" costs of land and seismic. During the first six months of fiscal 2006, Yoho has added 20,000 net acres to its undeveloped land inventory. The undeveloped land base is currently 46,400 net acres, which provides the Company with a solid inventory of drillable projects. Greater than 80% of the Company's undeveloped lands are located within the Peace River Arch. Yoho has also added 160 km of 2D seismic and 60 km2 of 3D seismic to its data base. Land and seismic expenditures to date total $6.4 million.

Yoho Resources Inc. is a Calgary based junior oil and natural gas company with operations focusing in the Peace River Arch of North West Alberta. The common shares of Yoho are listed on the TSX Venture Exchange under the symbol "YO".


Certain statements regarding Yoho Resources Inc. include 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