Yoho Resources Inc.
TSX VENTURE : YO

Yoho Resources Inc.

June 20, 2011 18:09 ET

Yoho Resources Inc. Announces Results from Umbach Montney Unconventional Drilling

CALGARY, ALBERTA--(Marketwire - June 20, 2011) -

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Yoho Resources Inc. ("Yoho" or the "Company") (TSX VENTURE:YO) is pleased to provide an update on its drilling and completion operations at Umbach/Nig Creek, British Columbia.

Umbach/Nig Creek, British Columbia

In March 2011, Yoho, with partner Progress Energy Resources Corp. (each 50% working interest) re- entered the a-A41-A/94-H-4 well and drilled a 1,050 meter horizontal section targeting the Montney formation. In June 2011, the well was completed in the horizontal section with an 8 stage, 16 perforation completion using plug and perf completion methodology. The well was then flowed on clean-up and production tested at various choke settings and flowing pressures over a 144 hour (6 day) period. During the flow test, the well flowed up tubing at a stable rate of 4.2 Mmcf per day at 513 psi on a 48/64" choke setting with 55 barrels per day of free condensate. The well was then flowed up casing with a final rate of 6.3 Mmcf per day at a flowing pressure of 939 psi on a 38/64" choke setting, yielding 78 barrels per day of free condensate. The well is currently shut-in for pressure build-up. Liquids production with the natural gas is expected to be 25 to 30 barrels per Mmcf with approximately 40-50% of the liquids being condensate.

Yoho has accumulated 37,200 gross (19,300 net) acres of land adjacent to this well. The successful application of horizontal technology in this tight gas formation will now allow Yoho to establish a comprehensive development plan for the Montney on the Company's extensive land base in the area.

Kaybob, Alberta

Yoho continues to monitor production and pressure data from the two successful Duvernay horizontal wells that the Company has a 33 1/3% working interest in (Yoho press releases September 14, 2010 and April 19, 2011). Core analysis data recently received from Yoho's two vertical wells drilled in the area targeting the Duvernay formation is currently being evaluated. Further development work in this area on the Duvernay formation is currently being planned by Yoho subject to results of both the production and the core data.

Mike/Pickel, British Columbia

The successful horizontal well (a-B21-I/94-H-3) drilled in January of 2011 (Yoho press release March 14, 2011) was on production up to June 15, 2011 when it was shut in due to the Spectra McMahon gas plant turnaround. A preliminary development plan for this area has been prepared by the Company and, given current natural gas pricing, development activities and capital allocation will be weighed against results from both the Duvernay at Kaybob and the Montney at Umbach/Nig Creek.

Outlook

Yoho has recently had an increase in its bank credit facility to $40 million from $34 million.

Yoho is extremely pleased with the results to date of the three unconventional resource style projects that were tested during fiscal 2011. The capital expenditures for the balance of fiscal 2011 are currently being reviewed. Yoho will allocate "go forward" development capital for the balance of fiscal 2011 and fiscal 2012 based on detailed economic analysis of all new data on all three unconventional projects.

Cautionary Statements

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", "schedule", "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: the estimated volumes associated with certain of Yoho's wells; Yoho's development plans on certain of its properties; estimates of timing for tie-in of certain gas wells; completion operations on certain of its gas wells and the life of Yoho's reserves.

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 defer 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.

Yoho Resources Inc. is a Calgary based junior oil and natural gas company with operations focusing in northeast British Columbia, West Central Alberta and the Peace River Arch of Alberta. 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.

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, CA
    Vice President, Finance and CFO
    (403) 537-1771
    www.yohoresources.ca