CALGARY, ALBERTA–(Marketwired – Oct. 29, 2014) – Yoho Resources Inc. (“Yoho” or the “Company”) (TSX VENTURE:YO) is pleased to provide an operational update of its drilling operations at Kaybob, Alberta.
During fiscal Q4, Yoho continued with its Duvernay drilling program at Kaybob. Yoho has finished the drilling of a horizontal well at 01-13-59-19 W5 at a 100% working interest. The 01-13 well was drilled to a total depth of 5,081 meters, with a lateral length of 1,755 meters. Completion operations are currently being planned for the well. Two additional non-operated wells are currently being drilled, one well at a 33.33% working interest and the second well at a 50% working interest. Both wells are expected to be finished drilling operations in November 2014, with completion and tie-in operations to follow.
Also during September/October 2014, completion operations were conducted on a well at 02-25-62-22 W5 (50% working interest). The well was flowing at the end of a 111 hour test at 4 Mmcf per day and 577 barrels of condensate per day. The Company expects the equipping and tie-in of this well will be completed in December 2014.
FINANCIAL ADVISOR APPOINTMENT
Yoho also announces that it has appointed BMO Capital Markets to act as its exclusive financial advisor in conjunction with a strategic review of the Company’s Duvernay assets. This review may include third party proposals for the disposition or other transactions involving the Company’s Duvernay assets. There is no guarantee that any proposal may be obtained in this regard nor is there a timeline for completion of this review. Yoho does not intend on disclosing developments with respect to this review unless and until a specific transaction has been approved or it is otherwise determined that disclosure is necessary or appropriate.
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.
Certain information regarding Yoho set forth in this news release, including (among other things): the Company’s expected timing for completion of drilling operations at the Company’s non-operated wells in the Duvernay and the commencement of completion operations on the same; the Company’s expectations on the timing for the equipping and tie-in of the well at 02-25-62-22 W5 will be completed in December 2014; expectations regarding the timing and outcome of Yoho’s review of its Duvernay asset, and whether or not a transaction will be completed and Yoho’s intention with respect to further updates on the same. 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, loss of markets, volatility of commodity prices; volatility in production rates, 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 third party and regulatory approvals, 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, fluctuations in foreign exchange or interest rates, and the uncertainty of estimates and projections of production, costs and expenses.
With respect to forward-looking statements contained in this news release, Yoho has made a number of assumptions. The key assumptions underlying the aforementioned forward-looking statements include assumptions regarding (among other things): the impact of increasing competition; the general stability of the economic and political environment in which the Company operates; the timely receipt of any required third party and regulatory approvals; the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the timing of drilling plans and completion operations; the ability of the operator of the projects which the Company has an interest in operating the field in a safe, efficient and effective manner; the ability of the Company 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 of exploration; the timing and costs of pipeline, storage and facility construction and expansion and the ability of the Company to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its oil and natural gas production. Certain or all of the forgoing assumptions may prove to be untrue.
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 (www.yohoresources.ca).
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 securities laws.
Initial Production Levels
Any references in this news release to initial, early and/or test production/performance rates are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter. Additionally, such rates may also include recovered “load oil” fluids used in well completion stimulation. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for Yoho. The initial production rate may be estimated based on other third party estimates or limited data available at this time. The initial production is generally estimated using BOEs. In all cases in this news release initial production or test rates are not necessarily indicative of long-term performance of the relevant well or fields or of ultimate recovery of hydrocarbons.
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.
Yoho Resources Inc.
President & Chief Executive Officer
Yoho Resources Inc.
Vice-President Finance & Chief Financial Officer