Yoho Resources' Current Production Approaches 3,700 boe Per Day, Acquires
Incremental Duvernay Lands at Kaybob and Completes Land Swap
CALGARY, ALBERTA -- (Marketwired) -- 04/03/13 -- Yoho Resources Inc.
("Yoho" or the "Company") (TSX VENTURE:YO) is pleased to provide an
update of operations at Kaybob, Alberta and Nig, British Columbia.
At Kaybob, Yoho's recently drilled Duvernay wells at Tony Creek at
14-21-62-21 W5 (75% working interest) and at 1-16-62-21 W5 (75%
working interest) (press release February 4, 2013) along with the
13-22-62-21 W5 well (50% working interest) have been on-stream and
producing from one to four weeks. Total production from these three
wells is currently estimated at 1,400 net (2,100 gross) boe per day
(net 4.0 MMcf per day and net 730 barrels of natural gas liquids of
which approximately 65% is condensate). Field netbacks for the
Company's' Duvernay production were $39.61 per boe during fiscal Q1.
Yoho's current corporate production is estimated at 3,600 to 3,700
boe per day, including the early production from these wells. The
high liquids content of the Company's natural gas production (100 -
160 barrels per Mmcf) from the Duvernay formation makes this play's
economics very attractive at current commodity prices. Yoho's
drilling and production results to date have been encouraging and
costs have continued to come down. The Duvernay program continues to
generate momentum and, as a result, Yoho plans to drill up to 4 gross
(2 net) wells here by the end of 2013.
Also at Kaybob, Yoho has acquired a 25% working interest in three
additional highly-prospective sections of Duvernay P&NG rights in the
gas-condensate window. The additional land is located approximately 1
1/2 miles from the Company's land at Tony Creek. Subsequent to this
acquisition, the Company's current Duvernay land position at Kaybob
is 57 gross (21.75 net) sections. Yoho has an estimated 150
additional net Duvernay development drilling locations on existing
lands at Kaybob.
In a separate transaction, Yoho purchased gross overriding royalties
from a third-party on eight gross sections of its Duvernay lands,
including those lands containing the three Tony Creek wells mentioned
above. The gross overriding royalties ranged from 4% to 6% on the
Company's Duvernay production and resulted from farm-in agreements
that Yoho negotiated previously.
Nig, British Columbia
At Nig, British Columbia, Yoho has closed an asset exchange
transaction with its partner in the Nig lands whereby each party
exchanged 50% of their working interest in certain lands. As a result
of this transaction, Yoho now holds 100% in 29 gas spacing units in
the southern land block at Nig in exchange for the Company's interest
in the northern land block at Nig. This transaction was completed
with only very minor changes in net production, reserves and net
Yoho Resources Inc. is a Calgary based junior oil and natural gas
company with operations focusing in West Central 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.
Special Note Regarding Forward-Looking Information
In the interest of providing readers with information regarding Yoho,
including management's assessment of the future plans and operations
of Yoho, certain statements contained in this news release constitute
forward-looking statements or information (collectively
"forward-looking statements") within the meaning of applicable
securities legislation. Forward-looking statements are typically
identified by words such as "anticipate", "continue", "estimate",
"expect", "forecast", "may", "will", "project", "could", "plan",
"intend", "should", "believe", "outlook", "potential", "target" and
similar words suggesting future events or future performance. In
particular but without limiting the foregoing, this news release
contains forward-looking statements pertaining to the following: the
Company's expectations regarding the Company's assessment of the
economics of the Duvernay play; the Company's drilling plans in
fiscal 2013; and the Company's view on the prospectivity of its
Kaybob land holdings.
With respect to forward-looking statements contained in this
document, Yoho has made a number of assumptions. The key assumptions
underlying the aforementioned forward-looking statements include
assumptions that: (i) facilities the timing of the repairs and other
maintenance items for certain facilities and other infrastructure in
the Kaybob area will conducted as currently expected by Yoho; (ii)
that well decline rates and other production levels will be
consistent with Yoho's expectations and forecasts; (iii) that
commodity prices will be maintained such that the economics of Yoho's
projects described in this press release will continue to justify
management's belief of the economics on the play; and (iv) that Yoho
will be able to execute its anticipated drilling program at Kaybob of
up to 4 gross (2 net) wells in the time frame contemplated herein.
Certain or all of the forgoing assumptions may prove to be untrue.
Certain information regarding Yoho set forth in this document may
constitute forward-looking statements under applicable securities
laws and necessarily involve substantial known and unknown risks and
uncertainties. These forward-looking statements are subject to
numerous risks and uncertainties, certain of which are beyond Yoho's
control, including without limitation, risks associated with oil and
gas exploration, development, exploitation, production, marketing and
transportation, reliance on third parties, loss of markets,
volatility of commodity prices, environmental risks, inability to
obtain drilling rigs or other services, capital expenditure costs,
including drilling, completion and facility costs, unexpected decline
rates in wells, wells not performing as expected, delays resulting
from or inability to obtain required regulatory approvals and ability
to access sufficient capital from internal and external sources, the
impact of general economic conditions in Canada, the United States
and overseas, industry conditions, changes in laws and regulations
(including the adoption of new environmental laws and regulations)
and changes in how they are interpreted and enforced, increased
competition, the lack of availability of qualified personnel or
management and fluctuations in foreign exchange or interest rates.
Readers are cautioned that the foregoing list of factors is not
Yoho's actual results, performance or achievement could differ
materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurance can be
given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what
benefits that the Company will derive therefrom. All subsequent
forward-looking statements, whether written or oral, attributable to
the Company or persons acting on its behalf are expressly qualified
in their entirety by these cautionary statements. Additional
information on these and other factors that could affect Yoho's
operations and financial results are included in reports on file with
Canadian securities regulatory authorities and may be accessed
through the SEDAR website (www.sedar.com) or Yoho's website
The forward-looking statements contained in this document are made as
at the date of this news release and Yoho does not undertake any
obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable
Barrel of oil equivalents or boes may be misleading, particularly if
used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on
an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the
wellhead. Given the value ratio based on the current price of crude
oil as compared to natural gas is significantly different from the
energy equivalency of 6 mcf: 1 bbl, utilizing a conversion ratio of 6
Mcf: 1 bbl may be a misleading indication of value.
In this press release the Company makes reference to the term "field
netbacks" which is a non-IFRS financial measures that does not have
any standardized meaning prescribed by IFRS and is therefore unlikely
to be comparable to similar measures presented by other issuers. The
Company uses "field netbacks" as a key performance indicator. "Field
netbacks" is determined by deducting royalties and operating and
transportation expenses from petroleum and natural gas sales revenue.
The Company considers "field netbacks" a key measure in assessing the
efficiency of its oil and gas assets.
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.
Yoho Resources Inc.
Wendy S. Woolsey, CA
Vice President, Finance and CFO
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