CALGARY, ALBERTA–(Marketwired – Dec. 4, 2013) – Yoho Resources Inc. (TSX VENTURE:YO) (“Yoho” or the “Company”) has filed today on SEDAR the financial statements for the year ended September 30, 2013 and the related managements’ discussion and analysis (“MD&A”). Yoho today also filed its Annual Information Form for the year ended September 30, 2013 which includes the Company’s reserves data and other oil and gas information for the year ended September 30, 2013 as mandated by National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators (“NI 51-101”). Yoho’s independent reserve evaluation for the year ended September 30, 2013 was prepared by GLJ Petroleum Consultants Ltd. (“GLJ”). Copies of these documents may be found on www.sedar.com.
Highlights
- Yoho’s production during fiscal 2013 averaged 2,337 boe per day (29% oil and NGL), a 6% increase from fiscal 2012 production of 2,207 boe per day (24% oil and NGL).
- Yoho generated funds from operations for fiscal 2013 of $13.8 million ($0.27 per share basic and diluted), an increase of 39% from fiscal 2012. Although production increased 6%, the higher proportion of high-liquid natural gas produced, particularly from the Company’s Duvernay property at Kaybob, has increased field net-backs and increased funds from operations for fiscal 2013, a trend which is expected to continue into fiscal 2014.
- Net exploration and development expenditures for fiscal 2013 were $26.9 million. During the year ended September 30, 2013, Yoho drilled 2 (1.5 net) Duvernay gas wells with an overall success rate of 100%. During a summer of lower natural gas prices, Yoho elected to decrease its drilling capital during fiscal 2013, which also allowed Yoho to monitor industry drilling at Kaybob and Nig. During fiscal 2013, capital was also spent by Yoho on pipelines and facilities at Kaybob and Nig.
- Yoho maintained a flexible balance sheet with total net debt of $31.2 million at September 30, 2013 on a bank credit facility of $56 million.
- Yoho’s proved plus probable reserves (Company interest) as evaluated by GLJ as at September 30, 2013 increased 92% to 52.7 MMboe from 27.4 MMboe at September 30, 2012. The Company’s proved reserves (Company interest) as at September 30, 2013 increased 9% to 11.8 MMboe from 10.8 MMboe.
- The net present value of Yoho’s estimated future net revenue before income taxes from proved plus probable reserves as at September 30, 2013 and utilizing GLJ’s October 1, 2013 price forecast and discounted at 10%, is $353.5 million. The net present value of total proved reserves as at September 30, 2013 is $90.5 million.
- For fiscal 2013, Yoho achieved an estimated all-in finding, development and acquisition costs of $9.54 per boe (including all technical revisions and changes in future development capital). For the past three years, Yoho’s rolling average estimated finding, development and acquisition costs were $12.50 per boe (including all technical revisions and changes to future development capital). Total future development capital for Yoho’s proved plus probable reserves at September 30, 2013 is $506.8 million scheduled over seven years. Total future development capital for Yoho’s total proved reserves at September 30, 2013 is $129.7 million scheduled over five years. For further information on the Company’s finding and development costs, including the method of calculation of the same and other comparative information, see the Company’s press release dated November 19, 2013.
- Yoho’s net asset value per share as at September 30, 2013 is calculated at $8.12 per share (basic) including an internal undeveloped land value of $87.4 million and $6.39 per share (basic) excluding undeveloped land value.
| Year ended | Year ended | ||||
| September 30, 2013 | September 30, 2012 | ||||
| Financial ($) | |||||
| Petroleum and natural gas sales | 29,947,024 | 23,177,160 | |||
| Funds from operations (1) | 13,774,664 | 9,917,532 | |||
| per share – basic | 0.27 | 0.22 | |||
| per share – diluted | 0.27 | 0.22 | |||
| Net income (loss) | 9,602,087 | (8,899,211 | ) | ||
| per share – basic | 0.19 | (0.20 | ) | ||
| per share – diluted | 0.19 | (0.20 | ) | ||
| Net exploration and development expenditures | 30,437,985 | 34,696,555 | |||
| Net acquisitions and dispositions | (3,525,433 | ) | (488,352 | ) | |
| Total assets | 181,222,323 | 154,495,876 | |||
| Total debt (including working capital deficiency) | 31,227,793 | 18,505,730 | |||
| Shareholders’ equity | 125,320,647 | 113,911,023 | |||
| Weighted average common shares outstanding | |||||
| Basic | 50,427,189 | 44,922,728 | |||
| Diluted | 50,473,765 | 44,922,728 | |||
| Year ended | Year ended | ||||
| September 30, 2013 | September 30, 2012 | ||||
| Operations | |||||
| Production | |||||
| Natural gas (mcf/d) | 9,985 | 10,022 | |||
| Oil and NGL (bbls/d) | 673 | 537 | |||
| Combined (boe/d) | 2,337 | 2,207 | |||
| Realized sales prices | |||||
| Natural gas ($/mcf) | 3.29 | 2.39 | |||
| Oil and NGL ($/bbl) | 73.09 | 73.32 | |||
| Funds from operations per boe ($/boe) | |||||
| Petroleum and natural gas sales | 35.10 | 28.68 | |||
| Royalties | (3.31 | ) | (2.84 | ) | |
| Operating expenses | (11.25 | ) | (10.70 | ) | |
| Operating netback (2) | 20.54 | 15.14 | |||
| General and administrative | (3.19 | ) | (3.29 | ) | |
| Interest | (1.57 | ) | (0.94 | ) | |
| Realized gain on financial derivative contracts | 0.36 | 1.37 | |||
| Funds from operations (1) | 16.14 | 12.28 | |||
| Drilling activity | |||||
| Total wells | 2 | 8 | |||
| Working interest wells | 1.5 | 3.7 | |||
| Success rate on working interest wells | 100 | % | 100 | % | |
| Undeveloped land (net acres) | 110,300 | 135,266 | |||
| Notes: | |
| (1) | Funds from operations is calculated as cash provided by operating activities, adding the change in non-cash working capital, decommissioning obligation expenditures. Funds from operations is used to analyze the Company’s operating performance and leverage. Funds from operations does not have a standardized measure prescribed by IFRS and therefore may not be comparable with the calculations of similar measures for other companies. Yoho’s calculation of funds from operations is detailed in the MD&A for the years ended September 30, 2013 and 2012. |
| (2) | Operating netback equals petroleum and natural gas sales including realized hedging gains and losses on commodity contracts less royalties, operating costs and transportation costs calculated on a boe basis. Operating netback and funds from operations netback do not have a standardized measure prescribed by IFRS and therefore may not be comparable with the calculations of similar measures for other companies. |
OPERATIONS UPDATE
Kaybob Duvernay
Yoho is currently participating in the drilling of one (0.5 net) horizontal well in the Kaybob area targeting the Duvernay formation. Current plans for Yoho are to drill a total of 4 (1.5 net) horizontal wells in the Duvernay shale play in fiscal 2014.
Nig Montney
At Nig, Yoho has spud a horizontal well targeting the Upper Montney formation at c-29-A/94-H-4. This well will be the final well in the delineation phase of the Company’s Upper Montney program.
OUTLOOK
For fiscal 2014, Yoho is currently planning a total capital program of between $31.0 and $32.0 million weighted towards drilling of two unconventional plays at Kaybob and Nig. Yoho’s fiscal 2014 budget assumes an oil price of $85.00 per barrel at Edmonton and a posted gas price of $3.40 per gigajoule at AECO. Yoho estimates that overall production for fiscal 2014 will average approximately 2,750 to 2,800 boe per day (a 20% increase from fiscal 2013) with cash flow estimated between $18.0 and $19.0 million (a 35% increase from fiscal 2013). During fiscal 2014, the Company expects to continue to replace drier natural gas production with high-liquid natural gas production, primarily from the Duvernay formation at Kaybob, Alberta.
About Yoho
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”.
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.
Cautionary Statements
SpecialNote