Yoho Resources Inc.
TSX VENTURE : YO

Yoho Resources Inc.

December 15, 2010 09:00 ET

Yoho Resources Inc. Announces a 64% Increase in Total Proved plus Probable Reserves as at September 30, 2010, Increased Duvernay Land Holdings at Kaybob, and Annual Financial and Operating Result

CALGARY, ALBERTA--(Marketwire - Dec. 15, 2010) -

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 and announce the results of its independent reserve evaluation for its fiscal year ended September 30, 2010 as evaluated by GLJ Petroleum Consultants Ltd. ("GLJ"). The Company has also filed today on SEDAR the financial statements for the year ended September 30, 2010 and the related managements' discussion and analysis. Yoho today also filed its Annual Information Form which includes the Corporation's reserves data and other oil and gas information for the year ended September 30, 2010 as mandated by National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators. Copies of these documents may be found on www.sedar.com.

Highlights



-- Yoho's proved plus probable reserves as at September 30, 2010 increased
64% to 9,131 Mboe. Proved reserves at September 30, 2010 increased 57%
from the prior year. Proved and probable reserves per weighted average
share increased 31% from the prior year. Proved reserves per weighted
average share increased 26% over fiscal 2009.
-- The Company has recently entered into four separate land agreements
where Yoho has the right to earn working interests in up to 20.75 (7.76
net) sections of additional Duvernay mineral rights in the Kaybob area,
which with further drilling will increase the Company's land holdings in
the Duvernay play to 48.75 (17.3 net) sections.
-- For fiscal 2010 Yoho achieved all-in finding, development and
acquisition costs of $14.00 per boe (proved and probable reserves,
including all technical revisions and changes in future capital). For
the past three years, the rolling average finding, development and
acquisition costs were $13.84 per boe (proved and probable reserves,
including all technical revisions and changes to future capital). Net
capital expenditures for fiscal 2010 were $43.8 million, which included
$21.3 million spent on the acquisition of a private company in June
2010.
-- Yoho's proved plus probable reserve life index (RLI) (based on fourth
quarter average production) increased by 75% to 11.0 years at September
30, 2010 from 6.3 years last year. The proved reserve life index
increased by 68% to 6.9 years from 4.1 years in the prior year.
-- Yoho's net asset value at September 30, 2010 is calculated at $3.83 per
share (basic) based on estimated future net revenues from proved and
probable reserves discounted at 10% and utilizing the GLJ October 1,
2010 price forecast for evaluation of reserve values.
-- Yoho's production during fiscal 2010 averaged 2,269 boe per day. The
summer drilling program has increased Yoho's current production to
approximately 2,600 boe per day.
-- Yoho generated funds from operations for fiscal 2010 of $12.6 million
($0.49 per share basic and diluted) during a year of low natural gas
prices.


Operations Update

2010 was a year of substantial transition for Yoho. Faced with extremely low pricing for natural gas and a continued pessimistic outlook for the commodity, Yoho undertook to increase our efforts to explore for natural gas containing higher quantities of liquids, substantially increasing the economic viability relative to the dry natural gas which the Company had historically been exploring for and producing.

Yoho is now in the position to take advantage of three potentially "game-changing" projects:



-- a high liquids content Duvernay shale gas play in west central Alberta;
-- a liquids rich Montney gas play in north-east British Columbia; and
-- a Jean Marie gas play in north-eastern British Columbia.


Yoho has accumulated substantial acreage positions in all three of these plays and success in any one of the three projects would provide a significant number of follow-up drilling locations for the Company.

In September 2010, Yoho, with two other industry partners, drilled industry's first horizontal well into the Duvernay shale. Despite mechanical problems with the completion, the well successfully produced natural gas with very high liquids production, setting the stage for future drilling in this world class shale gas play.

With a completely redesigned completion program, Yoho and partners will drill the second horizontal well into the Duvernay, starting in December 2010. With continued improvements in technique and engineering applications, we are increasingly optimistic regarding this next Duvernay well.

Yoho has recently signed four separate land agreements whereby the Company has the right to earn working interests in up to 20.75 sections (7.76 net) of additional mineral rights in the Duvernay formation in the Kaybob area by drilling two Duvernay vertical wells which are scheduled to spud in December 2010 and January 2011. Additional information gained from these wells will be integrated with the substantial technical database that Yoho has currently assembled on this exciting shale gas and liquids play.

Augmenting our resource plays, Yoho continues to pursue conventional style drilling programs, targeting Cretaceous gas containing high liquids in the Kaybob and McLeod areas of west-central Alberta. Successful drilling results at the end of fiscal 2010 have resulted in increased production in early fiscal 2011 to approximately 2,600 boe per day. The next well at Kaybob is scheduled to start drilling in December 2010.

The Company acquired a private company during 2010 which had production comprised of 60% oil, thereby moving our average production mix to 75% natural gas and 25% oil and liquids from 87% natural gas one year ago.



Financial
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Year ended Year ended
September 30, 2010 September 30, 2009
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Financial ($)
Petroleum and natural gas sales 25,522,835 25,706,918
Funds from operations (1) 12,576,571 11,196,594
per share - basic 0.49 0.54
per share - diluted 0.49 0.54
Net loss (2,718,337) (4,891,956)
per share - basic (0.11) (0.24)
per share - diluted (0.11) (0.24)

Net capital expenditures 22,599,839 15,523,760
Net acquisitions and dispositions 22,689,218 (210,910)

Total assets 124,119,031 89,597,800
Total debt (including working
capital deficiency) 22,878,414 24,470,775
Shareholders' equity 81,706,595 52,557,414

Weighted average common shares
outstanding
Basic 25,689,520 20,555,861
Diluted 25,689,520 20,555,861

Operations
Production
Natural gas (mcf/d) 11,224 12,387
Light oil and NGL (bbls/d) 296 271
Heavy oil (bbls/d) 102 92
Combined (boe/d) 2,269 2,428

Realized sales prices
Natural gas ($/mcf) 4.14 4.40
Light oil and NGL ($/bbl) 57.77 44.18
Heavy oil ($/bbl) 61.79 42.39

Funds from operations per boe
($/boe)
Petroleum and natural gas sales 30.82 29.01
Royalties (3.89) (4.65)
Operating expenses (5.40) (4.65)
Processing fees (4.25) (4.16)
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Operating netback (1) 17.28 15.55
General and administrative (2.36) (2.00)
Interest (0.75) (0.97)
Realized gain on financial
derivative contracts 1.04 0.06
Capital and other taxes (0.02) (0.01)
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Funds from operations (1) 15.19 12.63
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Drilling activity
Total wells 17 15
Working interest wells 9.5 9.4
Success rate on working interest
wells 90% 85%

Undeveloped land (net acres) 165,458 146,106
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Note: (1) Funds from operations and funds from operations per share are not
measurements based on generally accepted accounting principles
("GAAP"), but are financial terms commonly used in the oil and gas
industry. The Company's funds from operations may not be
comparable to that reported by other companies. Yoho's
calculation of funds from operations is detailed in the MD&A for
the years ended September 30, 2010 and 2009. Operating
netbacks do not have a standardized meaning prescribed by
Canadian GAAP and therefore may not be comparable with the
calculation of similar measures by other companies. Yoho
determines operating netbacks by deducting royalties, operating
and processing expenses from petroleum and natural gas sales.


For the year ended September 30, 2010 Yoho generated funds from operations of $12.6 million despite a realized natural gas price of only $4.14 per mcf. On a per share basis, funds from operations for the year were $0.49 basic and diluted. Despite continued low natural gas pricing in fiscal 2010, the increased prices for crude oil and natural gas liquids, combined with a continued commitment to maintaining top quartile cash costs, resulted in an increase in funds from operations for fiscal 2010 as compared to the prior year.

In December 2010, Yoho completed a bought deal financing of 1,820,000 common shares at an issue price of $2.75 per Common Share and 1,220,000 Common Shares issued on a "flow through" basis at an issue price of $3.30 per Flow-Through Share for aggregate gross proceeds of $9,031,000. The Company also closed a non-brokered private placement of an aggregate of 303,030 Flow-Through Shares at an issue price of $3.30 per Flow-Through Share for aggregate gross proceeds of $1,000,000. Proceeds from these financings have initially been used to pay down the Company's credit facility. Subsequent to these financings, Yoho's current total debt is estimated at between $15.0 and $15.5 million.

Drilling

During the year ended September 30, 2010, Yoho drilled 17 (9.5 net) wells resulting in 16 (8.5 net) gas wells and one (1.0 net) wells which was dry and subsequently abandoned with an overall success rate of 90% on net wells drilled.

Land Holdings

Yoho has continued to acquire land in selective areas at Crown land sales during fiscal 2010. The Company internally estimated the fair market value of its net undeveloped land holdings as at September 30, 2010 to be $26.0 million. This evaluation was completed principally using industry activity levels, third party transactions and land acquisitions that occurred in proximity to Yoho's undeveloped lands during the past year.

The Company has recently entered into four separate land agreements, where Yoho has the right to earn an interest in up to 20.75 (7.76 net) sections of additional mineral rights in the Duvernay formation in the Kaybob area by drilling two Duvernay vertical wells. These wells are scheduled to spud in December 2010 and January 2011. These agreements will increase the Company's current land holdings in the Duvernay play to 48.75 (17.3 net) sections.

A summary of the Company's land holdings at September 30, 2010 is outlined below:



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Developed Acres Undeveloped Acres Total Acres
Location Gross (1) Net (2) Gross (1) Net (2) Gross (1) Net (2)
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Alberta 69,712 26,304 169,155 102,863 238,864 129,167
British
Columbia 38,298 12,702 83,331 62,595 121,630 75,299
Other 404 147 - - 404 147
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Total 108,416 39,153 252,486 165,458 360,898 204,613
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Notes:

1. "Gross" means the total area of properties in which the Company has an
interest.
2. "Net" means the total area in which the Company has an interest
multiplied by the working interest owned by the Company.


Reserves

The reserves data set forth below is based upon an independent reserve assessment and evaluation prepared by GLJ with an effective date of September 30, 2010 (the "GLJ Report"). The following presentation summarizes the Company's crude oil, natural gas liquids and natural gas reserves and the net present values before income taxes of future net revenue for the Company's reserves using forecast prices and costs based on the GLJ Report. The GLJ Report has been prepared in accordance with the standards contained in the COGE Handbook and the reserve definitions contained in National Instrument 51-101.

All evaluations and reviews of future net cash flows are stated prior to any provisions for interest costs or general and administrative costs and after the deduction of estimated future capital expenditures for wells to which reserves have been assigned. It should not be assumed that the estimates of future net revenues presented in the tables below and in the "Highlights" section above represent the fair market value of the reserves. There is no assurance that the forecast prices and cost assumptions will be attained and variances could be material. The recovery and reserve estimates of our crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided herein.

Reserves Summary

The Company's total proved plus probable reserves increased by 64% in fiscal 2010 to 9,131 Mboe. The percentage of oil and natural gas liquids reserves has increased to 25% of the total proved and probable reserves from 15% last year. Proved reserves increased by 57% to 5,735 Mboe and comprised 63% of the Company's total proved plus probable reserves. Proved undeveloped reserves are 15.4% of the total proved reserves. The future capital in the GLJ report is $24.9 million for the proved and probable reserves and $10.4 million for total proved reserves.

The following table provides summary reserve information based upon the GLJ Report and using the published GLJ (October 1, 2010) price forecast.


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Light and Medium Heavy Oil Natural gas
Oil liquids
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Gross (1) Net (2) Gross (1) Net(2) Gross (1) Net (2)

(Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl)

Proved
Producing 336 251 141 114 546 395
Non-producing 11 11 - - 56 43
Undeveloped 170 129 - - 85 69
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Total proved 516 391 141 114 687 507
Probable 416 315 30 24 406 301
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Total proved
& probable 932 706 171 138 1,093 808
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Natural gas Total Barrels of oil
equivalent (3)
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Gross (1) Net (2) Gross (1) Net (2)

(Mmcf) (Mmcf) (Mboe) (Mboe)

Proved
Producing 20,686 17,984 4,471 3,758
Non-producing 1,882 1,655 380 329
Undeveloped 3,773 3,596 884 798
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Total proved 26,341 23,235 5,735 4,885
Probable 15,262 13,263 3,396 2,850
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Total proved & probable 41,603 36,498 9,131 7,735
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Notes:

1. "Gross." reserves means Yoho's working interest (operating and non-
operating) share before deduction of royalties and including any royalty
interest of the Company.
2. "Net" reserves means Yoho's working interest (operated and non-operated)
share after deduction of royalty obligations, plus Yoho's royalty
interest in reserves.
3. Oil equivalent amounts have been calculated using a conversion rate of
six thousand cubic feet of natural gas to one barrel of oil. Boes maybe
misleading, particularly if used in isolation. A boe conversion ratio of
six thousand cubic feet of natural gas to one barrel of oil is based on
an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead
4. May not add due to rounding.


Reserves Values

The estimated before tax future net revenues associated with Yoho's reserves effective September 30, 2010 and based on the published GLJ (October 1, 2010) future price forecast are summarized in the following table:



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Discounted at
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Undiscounted 5% 10% 15% 20%
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(M$)
Proved
Producing 108,227 84,306 69,218 58,938 51,520
Non-producing 8,930 7,322 6,154 5,274 4,593
Undeveloped 20,835 14,055 9,980 7,329 5,497
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Total proved 137,992 105,683 85,352 71,541 61,610
Probable 98,380 60,240 40,919 29,748 22,641
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Total proved plus
probable 236,372 165,922 126,271 101,289 84,251
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Notes:

1. The estimated future net revenues are stated before deducting future
estimated site restoration costs and are reduced for estimated
future abandonment costs and estimated capital for future
development associated with the reserves.
2. The net present value of future revenues does not represent
fair market value.
3. May not add due to rounding.


Price Forecast

The GLJ October 1, 2010 price forecast is summarized as follows:

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$US/$Cdn WTI @ Edmonton Hardisty Natural gas Westcoast
Year Exchange Cushing light crude Heavy at AECO-C Station
2 Rate oil 12 API spot
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(US$/bbl) (C$/bbl) ($Cdn/bbl) (C$/MMbtu) (C$/MMbtu)

2010 Q4 0.950 80.00 83.26 63.90 4.00 3.80
2011 0.950 83.00 86.42 65.24 4.37 4.17
2012 0.950 86.00 89.58 65.33 5.05 4.85
2013 0.950 89.00 92.74 65.26 5.74 5.54
2014 0.950 92.00 95.90 67.52 6.32 6.12
2015 0.950 93.84 97.84 68.90 6.79 6.59
2016 0.950 95.72 99.81 70.32 7.16 6.96
2017 0.950 97.64 101.83 71.76 7.47 7.27
2018 0.950 99.59 103.88 73.22 7.63 7.43
2019 0.950 101.58 105.98 74.72 7.81 7.61
2020 + 0.950 +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr
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Notes:

1. Inflation is accounted for at 2.0% per year


Capital Program Efficiency

The efficiency of the Company's capital program for the fiscal year ended September 30, 2010 is summarized below.



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2010 2009 Three Year Average
2008-2010
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Proved Proved Proved
plus plus plus
Proved Probable Proved Probable Proved Probable
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Exploration and
Development
expenditures
($ thousands) 22,600 22,600 13,516 13,516 54,791 54,791
Acquisitions ($
thousands) (2) 21,158 21,158 1,806 1,806 30,830 30,830
Change in future
development capital
($thousands)
- Exploration and
Development 5,214 13,428 236 2,598 5,104 16,381
- Acquisitions 2,695 4,133 - - 2,695 4,133
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Reserves additions
after revisions
(Mboe)(4)
- Exploration and
Development 2,125 3,116 955 1,365 3,997 5,553
- Acquisitions 795 1,265 172 203 1,392 2,135
- Total reserve
additions after
revisions 2,920 4,381 1,127 1,568 5,389 7,668
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Finding &
Development Costs
($/boe) (1) 13.09 11.56 14.40 11.81 14.98 12.82

Finding, Development
& Acquisition Costs
($/boe) (3) 17.69 14.00 13.81 11.43 17.34 13.84

Reserves Replacement
Ratio 353% 529% 127% 177% 218% 310%
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Notes:

1. The aggregate of the exploration and development costs incurred in the
most recent financial year and the change during that year in estimated
future development costs generally will not reflect total finding and
development costs related to reserve additions for that year.
2. The acquisition costs related to corporate acquisitions reflects the
consideration paid for the shares acquired plus the net debt assumed,
both valued at closing and does not reflect the fair market value
allocated to the acquired oil and gas assets under Canadian Generally
Accepted Accounting Principles.
3. Calculation includes reserve revisions and changes in future development
costs. Yoho also calculates finding, development and acquisition
("FD&A") costs which incorporate both the costs and associated reserve
additions related to acquisitions net of any dispositions during the
year. Since acquisitions can have a significant impact on Yoho's annual
reserve replacement costs, the Company believes that FD&A costs provide
a more meaningful representation of Yoho's cost structure.
4. 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.


Net Asset Value

The following table provides a calculation of Yoho's estimated net asset value based on the estimated future net revenues associated with Yoho's proved plus probable reserves discounted at 10% as presented in the GLJ Report.



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Forecast Prices and Costs before tax ($ thousands)
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Proved plus probable reserves - discounted at 10% (1) 126,271
Undeveloped land (2) 26,000
Bank debt and working capital deficiency as at September 30,
2009 (3) (22,878)
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Net asset value 129,393

Basic shares outstanding at September 30, 2010 (thousands) 33,764
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Net asset value per share (basic) $ 3.83
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Notes:

1. Net present value of future net revenue discounted at 10% as evaluated
by GLJ as at September 30, 2010. Net present value of future net revenue
does not represent fair market value of the reserves
2. Internally estimated value (see "Land Holdings")
3. Working capital deficiency includes the Company's accounts receivable
and derivatives less accounts payable and accrued liabilities and future
tax as at September 30, 2010.


Outlook

Yoho is currently planning a capital program for fiscal 2011 of between $28 and $29 million. With the continued volatility in commodity prices, the activity levels for fiscal 2011 will be closely monitored adjusted based on cash flow levels. Capital expenditures will also be adjusted subject to the results from several of Yoho's larger unconventional projects.

Yoho will continue to move forward with the unconventional resource style projects that the Company has been able to develop over the last 12 to 18 months. Yoho's 2011 winter drilling program, which includes 3 wells (one horizontal and two vertical) in the Duvernay Shale, will be underway in mid-December to be followed in January and February with the drilling of both the Jean Marie target at Mike/Pickell, British Columbia and the Montney target at Umbach, British Columbia. The Company has also realized considerable success in the Kaybob area targeting high-liquids gas in the Cretaceous section, utilizing both horizontal drilling and traditional conventional vertical wells. This program will also continue through fiscal 2011.

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".

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

Internal estimates

Certain information contained herein, such as the estimated fair value of the Company's land holdings, are based in estimated values the Company believes to be reasonable and are subject to the same limitations as discussed under "Forward-looking Information and Statements" below.

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", "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 forward-looking information and statements pertaining to the following: future drilling plans; future production levels; land holdings based on fulfilling drilling obligations under certain contractual commitments; the volumes and estimated value of Yoho's oil and gas reserves; the life of Yoho's reserves; resource estimates; the volume and product mix of Yoho's oil and gas production; future oil and natural gas prices and Yoho's commodity risk management programs; future liquidity and financial capacity; future results from operations and operating metrics; future costs, expenses and royalty rates; future interest costs; the exchange rate between the $US and $Cdn; future development, exploration, acquisition and development activities and related capital expenditures; the number of wells to be drilled and completed; the amount and timing of capital projects; operating costs; and the total future capital associated with development of reserves and resources.

The recovery, reserve and resources estimates of Yoho's reserves and resources provided herein are estimates only and there is no guarantee that the estimated reserves or resources with be recovered. 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 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 and the ability of Yoho 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 differ 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 or production declines; 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 Information Form).

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 forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Oil and Gas Advisory

The reserves information contained in this press release has been prepared in accordance with National Instrument 51-101 "Standards of Disclosure for Oil and Gas Activities" of the Canadian Securities Administrators ("NI 51-101"). Complete NI 51- 101 reserves disclosure has been included in our Annual Information Form for the year ended September 30, 2010. Listed below are cautionary statements that are specifically required by NI 51-101:

Where applicable, oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil. BOEs may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Individual properties may not reflect the same confidence level as estimates of reserves for all properties due to the effects of aggregation.

With respect to finding and development costs, the aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserve additions for that year.

This press release contains estimates of the net present value of our future net revenue from our reserves. Such amounts do not represent the fair market value of our reserves.

Non-GAAP Financial Measures

The press release contains the term "funds from operations" and "funds from operations per share" which do not have any standardized meaning prescribed by Canadian GAAP. Management uses funds from operations and funds from operations per share to analyze operating performance and leverage and considers funds from operations to be a key measure as it demonstrates the Company's ability to generate the cash necessary to fund future capital investments and to repay debt. Funds from operations should not be considered an alternative to, or more meaningful than cash flow from operating activities as determined in accordance with Canadian GAAP as an indicator of the Company's performance. Therefore references to funds from operations or funds from operations per share (basic and diluted) may not be comparable with the calculation of similar measures for other entities. Yoho calculates funds from operations per share using the same method used in the determination of net income per share.

Yoho also uses "operating netbacks" and per boe metrics as key performance indicators. These terms do not have a standardized meaning prescribed by Canadian GAAP and therefore may not be comparable with the calculation of similar measures by other companies. Management considers netbacks an important measure as it demonstrates its profitability relative to current commodity prices. The Company uses this measure to help evaluate its performance.

BOE equivalent

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.

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.

Contact Information

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