-- Yoho's production during fiscal Q3 2014 averaged 1,563 boe per day (27% oil and natural gas liquids ("NGL")). Production for fiscal Q3 was negatively impacted by infrastructure issues in the Kaybob area, which are expected to be resolved by early
September 2014at which time Yoho's Duvernayproduction will be restored to 100% of capacity. Yoho estimates that current production capability for the company to be approximately 2,400 - 2,500 boe per day, consisting of 1,200 boe per day of conventional production and 1,200 - 1,300 boe per day of Duvernayproduction. -- Yoho generated funds from operations for fiscal Q3 2014 of $2.2 million( $0.04per share basic and diluted). Operating netbacks for fiscal Q3 2014 were $24.44per boe. -- Total exploration and development expenditures for the first nine months of fiscal 2014 were $25.1 millionand included the costs for drilling 5 (2.8 net) and completing 2 (0.8 net) gas wells. The two wells that were completed in fiscal Q3 came on production during fiscal Q4. -- Total net debt was $12.3 millionat June 30, 2014. -- For fiscal 2015, Yoho plans to participate in up to 8 (3.5 net) Kaybob horizontal wells targeting the Duvernay Formation, the details of which are currently being finalized. Yoho has demonstrated that recent changes to completion methodology have been very successful and will utilize this methodology where applicable in the upcoming drilling program. OPERATIONS UPDATE Kaybob Duvernay
During fiscal Q3, Yoho continued with its
With over 200 Duvernay wells drilled or licensed in the general Kaybob area, significant infrastructure activity is underway in the area. New gas plants have recently been constructed and upgrades are being made to existing gas plants, roads and pipelines. As a result of this infrastructure activity and both planned and unplanned maintenance issues on existing gas plants and pipelines, Yoho has experienced a substantial amount of shut-in time for existing
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 expected timing for the resolution of maintenance issues at certain facilities in the Kaybob area; Yoho's estimated production rate once all
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 turnaround times of the facilities in the Kaybob area; 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.
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 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.