Yoho Resources Inc.

Yoho Resources Inc.

September 13, 2005 18:09 ET

Yoho Resources Inc. Announces Filing of Listing Application with TSXV and Approval of Fiscal 2006 Capital Budget

CALGARY, ALBERTA--(CCNMatthews - Sept. 13, 2005) - Yoho Resources Inc. ("Yoho" or the "Company") has today filed a listing application with the TSX Venture Exchange ("TSXV") in respect of reinstating trading of its voting common shares. The TSXV will be reviewing Yoho's listing application over the next few weeks. The reinstatement of trading of Yoho's voting common shares on the TSXV is expected to occur by the end of September, 2005.

The Company's board of directors has approved capital budgets for the balance of fiscal 2005 and for fiscal 2006. Yoho's capital budget for its fiscal year ending September 30, 2005 is $13.8 million and includes the drilling of 10 wells (5 net). The budget has been allocated as follows: $5.2 million for drilling and completing wells, $4.8 million for land and seismic and $3.5 million for facilities. The facility budget includes the acquisition of a working interest in a gas production facility for a total purchase price of $2.7 million.

During the current quarter, Yoho has participated in drilling two exploration wells in the Peace River Arch area resulting in one exploration discovery which was cased as an oil well and one well which was dry and subsequently abandoned. The oil well is currently being completed and equipped. Three additional wells are scheduled to be drilled under the fiscal 2005 capital program.

The capital budget for Yoho for its fiscal year ending September 30, 2006 has been set at $17.7 million. The Company plans on drilling 34 wells with an average 50% working interest. The budget has been allocated as follows: $9.3 million for drilling and completing wells, $3.3 million for land and seismic and $2.6 million for facilities and $2.0 million for acquisitions.

During the 2006 fiscal year, Yoho expects to continue its exploration program in the Peace River Arch with 20 wells scheduled to be drilled. In addition, a 14 well development drilling program is planned for the Basset Lake area of northern Alberta.

After giving effect to the 2006 capital expenditure program, Yoho expects production to average 800 boe per day for fiscal 2006, with an exit production rate in September, 2006 of approximately 1,100 boe per day. Funds from operations for fiscal 2006 are budgeted to be approximately $6.0 million, or $0.47 per share basic.

About Yoho Resources Inc.

Yoho is a Calgary based oil and gas exploration company operating within the Western Canadian Sedimentary Basin and initially focusing on the Peace River Arch. Yoho currently has 28,850 net acres of undeveloped land and approximately 500 boe per day of non-operated production.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

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.

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 ext 102
    Website: www.yohoresources.ca