Yoho Resources Inc.
TSX VENTURE : YO

Yoho Resources Inc.

May 27, 2009 09:00 ET

Yoho Resources Inc. Announces Financial and Operating Results for Second Fiscal Quarter and Continues Production Growth With 31% Increase From Q2 2008

CALGARY, ALBERTA--(Marketwire - May 27, 2009) -

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

Yoho Resources Inc. ("Yoho" or the "Company") (TSX VENTURE:YO) filed today the interim unaudited consolidated financial statements for the six months ended March 31, 2009 and related Management's Discussion and Analysis on www.sedar.com.

Highlights

- Increased production 31% to 2,408 boe per day for the three months ended March 31, 2009 from 1,840 boe per day for the three months ended March 31, 2008.

- Funds from operations for the second quarter of fiscal 2009 were $2.6 million compared to $4.7 million during the second quarter of fiscal 2008. On a per share basis, funds from operations for the three months ended March 31, 2009 were $0.13 per share diluted compared to $0.25 per share diluted for the same period last year.

- Maintained a strong balance sheet with only $19.5 million drawn at March 31, 2009 on a bank credit facility of $32 million. Total debt at March 31, 2009, after Yoho's winter drilling program was $24.2 million. The bank credit facility has recently been reviewed with no changes.

- Drilled 4 (4.0 net) wells during the second quarter of fiscal 2009, resulting in 3 (3.0 net) wells cased as gas wells or potential gas wells and 1 (1.0 net) well which was abandoned.

Operations

Successful drilling activities have increased Yoho's production 31% for the three months ended March 31, 2009 to average 2,408 boe per day (86% natural gas), from 1,840 boe per day for the three months ended March 31, 2009. Yoho's estimate of Q3 production is 2,600 to 2,650 boe per day, in spite of production being impacted during the third quarter by plant turnarounds in various areas. The current production capability is approximately 2,750 boe per day.

Financial

The 31 % increase in production was offset by a 39% decrease in natural gas prices received resulting in funds from operations for the second quarter of fiscal 2009 of $2.6 million compared to $4.7 million during the second quarter of fiscal 2008. During the quarter ended March 31, 2009, the Company received $4.88 per mcf for natural gas compared to $7.96 per mcf during the quarter ended March 31, 2008. On a per share basis, funds from operations for three months ended March 31, 2009 was $0.13 per share diluted compared to $0.25 per share diluted for the same period last year.

Outlook

With reduced natural gas prices, Yoho is currently planning a capital program for fiscal 2009 of between $14 and $17 million that includes plans to drill between 15 (9.4 net) and 19 (11.4 net) wells for the period from October 1, 2008 to September 30, 2009. From October 1, 2008 to March 31, 2009, total capital expenditures were $11.3 million.

Initial field work also began this winter on several unconventional projects in Alberta and British Columbia that Yoho's technical team has been working on over the last year, the drilling of which will take place subject to natural gas prices.

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