-- Subsequent to fiscal Q1 2014, Yoho completed a transaction to sell its assets at Nig,
British Columbiato Storm Resources Ltd. ("Storm") for a total consideration of $87.9MM, consisting of $30MM cash and 13.6 MM Storm shares. The $30MM cash component of the transaction price was used to eliminate Yoho's outstanding bank debt. Subsequent to the transaction, the Company's credit facilities were revised to total $50MM. -- Yoho has scheduled its annual general and special meeting of the shareholders of Yoho on March 20, 2014. As part of the meeting, Yoho shareholders will be asked to vote upon a plan of arrangement which will provide, among other things, for a pro rata entitlement of the 13.6 MM Storm shares currently held by Yoho. Based on the 50.7 MM Yoho shares currently issued and outstanding (on a non-diluted basis), holders of Yoho shares will be entitled to receive 0.26864 of a Storm Sharefor each Yoho share held at the time the Arrangement is completed. The final exact allocation of the Storm shares will be determined at the time the Arrangement is completed based on the number of Yoho shares then issued and outstanding. -- Yoho's production during fiscal Q1 2014 averaged 1,948 boe per day (30% oil and NGL), a 6% decrease from fiscal Q1 2013 production of 2,075 boe per day (25% oil and NGL). During fiscal Q1 2014 production at Kaybob, Albertacontinued to be restricted by high line pressures on the Tony Creeklateral pipeline which connects to the SemCams KA gas plant. Yoho has completed construction of a compressor at Kaybob which is expected to alleviate the production restriction. Production during fiscal Q1 was also impacted by shut-in production in non-operated areas, most of which has been restored in January 2014. -- Yoho generated funds from operations for fiscal Q1 2014 of $2.8 million( $0.06per share basic and diluted) compared to $2.9MM for fiscal Q1 2013 ( $0.06per share basic and diluted). The higher proportion of high- liquid natural gas produced, particularly from the Company's Duvernayproperty at Kaybob, has increased field net-backs and kept funds from operations consistent with the prior year despite slightly lower production volumes. -- Net exploration and development expenditures for fiscal Q1 2014 were $8.1 million, including the acquisition of one section of Duvernaymineral rights, which increased Yoho's total Duvernayrights at Kaybob to 22.5 net sections. The total net debt was $36.5 millionat December 31, 2013.
Fiscal Q1 2014 Capital Expenditures
Yoho has completed construction of a compressor facility at Kaybob to alleviate production restrictions due to high line pressures on the
During the three months ended
To date during fiscal Q2 2014, Yoho has participated in the drilling of one (0.33 net) horizontal well in the Kaybob area targeting the
For fiscal 2014, Yoho is currently planning a total capital program of between
Special Note Regarding Forward-Looking Information
Certain information regarding Yoho set forth in this news release, including (among other things) the Company's estimates of shareholders' entitlement to Storm Shares, the date of the Company's shareholder meeting, timing for the compressor at
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 (including shareholder) and regulatory approvals; the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner; the number of issued and outstanding common shares, drilling results; 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 operator of the Company's drilling projects in Kaybob to realize a recovery (in whole or in part) of certain expenses incurred; 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.
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.
Future Oriented Financial Information
This press release, in particular the information in respect of anticipated cash flows, may contain Future Oriented Financial Information ("FOFI") within the meaning of applicable Canadian securities laws. The FOFI has been prepared by management of Yoho to provide an outlook of Yoho's activities and results. The FOFI has been prepared based on a number of assumptions including the assumptions discussed under the heading "Special Note Regarding Forward-Looking Statements" and assumptions with respect to production rates and commodity prices. The actual results of operations of the Yoho and the resulting financial results may vary from the amounts set forth herein, and such variation may be material. Yoho and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments.
FOR FURTHER INFORMATION PLEASE CONTACT:
Yoho Resources Inc.Wendy S. Woolsey, CA Vice President, Finance and CFO 403-537-1771 www.yohoresources.ca Source: Yoho Resources Inc.