Yoho Resources Inc.

Yoho Resources Inc.

August 25, 2006 09:00 ET

Yoho Resources Inc. Announces Operational Update for the 2006 Fiscal Year, Filing of Financial Results for the Third Quarter ended June 30, 2006 and Capital Budget for Fiscal 2007

CALGARY, ALBERTA--(CCNMatthews - Aug. 25, 2006) - Yoho Resources Inc. ("Yoho" or the "Company") (TSX VENTURE:YO) today reported financial and operating results for the third quarter ended June 30, 2006 on www.sedar.com.

Yoho is also pleased to announce results of its fiscal 2006 capital program to date. Yoho has continued to add to land and seismic inventories and has invested $4.6 million in land and $2.1 in seismic assets during 2006. Yoho currently has 50,000 net acres of undeveloped land, which provides the Company with a solid inventory of prospects and opportunities. The Company's seismic assets have also grown to 1,200 km of 2D seismic and 103 km2 of 3D seismic.

Yoho continues to build momentum in the Company's core area of the Peace River Arch of Alberta. As of August 25, 2006, Yoho has participated in 35 (13.5 net) wells, with a 68% success ratio on a net basis. Several key exploratory successes will lead to follow up development drilling activity into fiscal 2007.

Fiscal 2006 Drilling Results to August 25, 2006
Gross Net
Oil 7 2.9
Gas 17 6.3
D&A 9 3.7
Other 2 0.6
Total 35 13.5

The Company's current production is approximately 870 BOE per day. Approximately 80 barrels of oil per day of production in the Seal area is currently shut in due to a fire in the oil battery. The facility operator is currently repairing the damage to the processing facility and the normal production volumes in Seal will be restored in early September, 2006. Yoho also has an additional 100 BOEPD that is expected to come on-stream in September, 2006, with a further 200 BOEPD behind pipe that is expected to be placed on production during the first quarter of fiscal 2007. The Company's production exit rate for its fiscal year at September 30, 2006 is expected to be as projected between 1,000 and 1,100 BOE per day.

Total capital expenditures for fiscal 2006 are expected to be $24 to $25 million, slightly higher than the previously announced $22 to $23 million, due to higher than forecasted completion activity and substantially higher costs for field services experienced during the year.

Fiscal 2007 Capital Budget

Yoho is currently planning a capital program of $30.9 million for fiscal 2007. The Company plans on drilling 37 (23 net) wells for the period from October 1, 2006 to September 30, 2007. The budget has been allocated as follows: $21.1 million for drilling and completing wells, $6.2 million for land and seismic, and $3.2 million for equipment, facilities and pipelines and $0.4 million for other capital expenditures.

The 2007 capital budget is based on benchmark average pricing of $70.00 per barrel of oil at Edmonton and $8.15 per mcf of natural gas at AECO. Although Yoho is reviewing various hedging strategies to manage commodity price risk, substantial variation from these benchmark commodity prices may cause decreased or increased activity by the Company.

The Company will continue to evaluate potential corporate and property acquisition opportunities; however, current market conditions do not fit the Company's growth plan. Yoho's forecasted growth will be generated by "home grown" exploration and development activity. Yoho has a significant inventory of properties and capital projects beyond the current budget activity and will continue to "high-grade" future opportunities as information becomes available.

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