Yoho Resources Inc.
TSX VENTURE : YO

Yoho Resources Inc.

February 28, 2008 09:00 ET

Yoho Resources Inc. Increases Funds From Operations 106% During First Fiscal Quarter

CALGARY, ALBERTA--(Marketwire - Feb. 28, 2008) -

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 three months ended December 31, 2007 and related Management's Discussion and Analysis on www.sedar.com.

Highlights

- Yoho's production for the three months ended December 31, 2007 averaged 1,850 boe per day (85% natural gas), a 124% increase from 825 boe per day for the three months ended December 31, 2006.

- As a result of increased production, funds from operations for the first quarter of fiscal 2008 increased 106% to $3.3 million from $1.6 million during the first quarter of fiscal 2007. On a per share basis, funds from operations for three months ended December 31, 2007 increased 90% to $0.19 per share diluted from $0.10 per share diluted last year.

- Yoho has drilled 6 (5.8 net) wells to date in fiscal 2008, resulting in 4 (3.8 net) gas wells and 2 (2.0 net) wells which were subsequently abandoned. Four additional wells will be drilled by the end of March, 2008.

- Yoho's is estimating production for the second fiscal quarter of 2008 (January to March, 2008) to average between 1,850 and 1,900 boe per day. As the result of successful drilling, Yoho has an additional 300 boe per day of production awaiting tie-in.

Operations

Yoho's drilling program has continued in British Columbia and in the Peace River Arch area of Alberta. From October 1, 2007 to February 27, 2008, the Company participated in the drilling of six (5.8 net) wells of which five (4.8 net) wells were located in the British Columbia. Two additional wells were drilled on Yoho's lands in Alberta under farm-out arrangements. These wells are currently awaiting completion and tie-in operations.

Land and Seismic

The Company has continued to add to both land and seismic inventories into fiscal 2008, with the undeveloped land base now at 115,000 net acres. The Company's seismic inventory currently stands at 2,370 km of 2D seismic data and 290 km2 of 3D seismic data. Seismic and land are key components to future growth for the Company in 2008 and beyond.

Outlook

Yoho is planning a capital program of approximately $15 million for fiscal 2008. The Company plans to drill 15 (11.6 net) wells for the period from October 1, 2007 to September 30, 2008. The budget has been allocated as follows: $11 million for drilling, completion and equipment and $4 million for land and seismic. At December 31, 2007, Yoho had drawn $14.2 million on bank credit facilities of $27 million. The Company has flexibility in the current budget to accelerate or reduce capital programs accordingly with changes in natural gas pricing and related cash flows.

Natural gas prices remain a large variable in our outlook for fiscal 2008. Recent increases in AECO prices are encouraging, but we will remain cautiously optimistic and will allocate capital accordingly. Yoho continues to build a substantial inventory of plays, prospects and ideas that will be brought forward when the economic conditions for each project dictates.

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