Yoho Resources Inc.

Yoho Resources Inc.

December 13, 2006 17:20 ET

Yoho Resources Inc. Announces Year End Operating and Financial Results

CALGARY, ALBERTA--(CCNMatthews - Dec. 13, 2006) -


Yoho Resources Inc. (TSX VENTURE:YO) ("Yoho" or the "Company") filed today the consolidated financial statements for the year ended September 30, 2006 and related Management's Discussion and Analysis on www.sedar.com.


Period from
Year Ended December 23, 2004 to
September 30, 2006 September 30, 2005
Financial ($)
Petroleum and natural gas sales 10,739,566 6,018,584
Funds from operations 6,457,539 3,120,688
per share (basic) 0.48 0.34
per share (diluted) 0.44 0.34
Net income 1,834,991 1,439,262
per share (basic) 0.14 0.16
per share (diluted) 0.12 0.16
Capital expenditures 25,313,986 20,810,910
Working capital (deficiency) (3,853,199) 3,026,720
Bank debt 791,241 -
Total assets 46,639,058 29,127,571

Heavy oil (bbls/d) 196 267
Light oil and NGL (bbls/d) 106 2
Natural gas (mcf/d) 2,422 1,735
BOE (boe/d) 706 556

Reference Prices
Edmonton par oil ($/bbl) 74.15 53.49
LLB heavy oil ($/bbl) 48.04 33.77
AECO gas ($/GJ) 7.22 7.55

Average Prices
Heavy oil ($/bbl) 34.07 29.03
Light oil ($/bbl) 64.20 69.93
NGL($/bbl) 49.77 67.63
Natural gas ($/mcf) 6.96 7.84

Operating Netbacks
Heavy oil ($/bbl) 19.49 18.08
Light oil and NGL($/bbl) 33.55 -
Natural gas ($/mcf) 5.13 4.70
Combined ($/boe) 28.03 23.32

Number of shares outstanding
Weighted Average
Basic 13,500,219 9,124,107
Diluted 14,829,409 9,124,107
End of period
Basic 14,306,104 12,575,438
Diluted 16,716,330 12,575,438


Yoho continued to conduct an active exploration program during fiscal 2006, participating in drilling 33 (14.4 net) wells in the Peace River Arch area resulting in seven (3.2 net) oil wells, 17 (7.5 net) gas wells and nine (3.7 net) wells which were dry and subsequently abandoned. Of the total wells drilled, all seven of the oil wells and seven of the gas wells were new pool exploration discoveries. Yoho has acquired an additional 25,440 gross (19,968 net acres) of land during fiscal 2006 and acquired 160 km of 2D seismic data and shot a 60 km2 3D seismic program over the undeveloped land.

Period from
Year ended December 23, 2004 to
September 30, 2006 September 30, 2005
------------------- ---------------------
Gross Net Gross Net
------------------- ---------------------
Oil wells 7 3.2 3 1.5
Gas wells 17 7.5 - -
Dry and abandoned 9 3.7 5 2.0
------------------- ---------------------
Total 33 14.4 8 3.5
------------------- ---------------------
------------------- ---------------------
Success rate 74% 43%
-------- --------
-------- --------

Production Update

Yoho's current production is approximately 975 boe per day. Of the current production, 475 boe per day is due to the exploration success during fiscal 2006. Successful drilling in the Boundary area continues to bolster Yoho's production with one well in the area currently producing at gross rates in excess of 2 MMcf per day. An additional 150 to 175 boe per day from two wells is temporarily shut in due to facility constraints. Both shut in gas wells are expected to resume production in the next several weeks. With new wells recently drilled, an additional 80 to 100 boe per day of production is behind pipe awaiting tie-in. Completion operations for the behind pipe volumes are currently underway. Yoho's current production capability, with all of the activity noted above coming on-stream is estimated to be 1,200 to 1,250 boe per day.

The previously announced acquisition of natural gas producing properties in northeast British Columbia will add 500 boe per day to Yoho's production. With the closing of the acquisition on or about December 31, 2006, production for the second quarter of fiscal 2007 (January 2007 to March 2007) is estimated at 1,750 boe per day. In addition, Yoho will acquire 87,600 gross (34,700 net) acres of land, of which 23,800 net acres of land is classified as undeveloped. Yoho will also acquire interests in several natural gas facilities and substantial infrastructure related to the acquired production and lands.

Yoho Resources Inc. is a Calgary based junior oil and natural gas company with operations focusing in the northwest 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.


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.


In conformity with National Instrument 51-101, Standards for Disclosure of Oil and Gas Activities ("NI 51-101"), natural gas volumes have been converted to barrels of oil equivalent ("boe") using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil. This ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Readers are cautioned that the term "boe" may be misleading, particularly if used in isolation.

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