Yoho Resources Inc. Announces Fiscal Q1 2015 Financial Results

CALGARY, ALBERTA--(Marketwired - Feb. 25, 2015) - Yoho Resources Inc. ("Yoho" or the "Company") (TSX VENTURE:YO) has filed today on SEDAR the financial statements for the three months ended December 31, 2014 and the related managements' discussion and analysis ("MD&A"). Copies of these documents may be found on www.sedar.com.

Highlights

• Yoho's production during fiscal Q1 2015 averaged 1,479 boe per day (33% oil and natural gas liquids). One Duvernay well (0.33 net) was brought on-stream in January 2015 after the end of this reporting period. Equipping and tie-in of two (1.0 net) additional Duvernay wells are currently underway, with initial production from these wells expected in March 2015. Average production for fiscal Q2 is estimated at 1,800 boe per day.
  
  

• Yoho generated funds from operations for fiscal Q1 2015 of $1.9 million ($0.04 per share basic and diluted and $13.87 per boe). Operating netbacks for fiscal Q1 2015 were $19.06 per boe, with operating netbacks in fiscal Q1 2015 for the Company's Duvernay properties of $32.63 per boe.
  
  

• Total exploration and development expenditures for the first three months of fiscal 2015 were $18.8 million and included the costs of drilling two (0.66 net) Duvernay gas wells. Capital expenditures for the period also included costs to finish drilling and begin completion operations on two wells spud in September 2014.
  
  

• Yoho's total net debt was $33.2 million at December 31, 2014, which included $14.1 million outstanding on the Company's bank credit facilities.

OPERATIONS UPDATE

Kaybob Duvernay

During fiscal Q1 2015, Yoho continued with its Duvernay drilling program. During the period, Yoho participated in the completion of two (0.83 net) horizontal Duvernay wells in the Kaybob area. The well at 16-33-60-20 W5 (33.3%) was completed and at the end of a 455 hour total flow period, the well was producing up tubing at a rate of 8.1 MMcf per day with 522 barrels of field condensate per day (approximately 65 barrels of field condensate per MMcf) at a flowing tubing pressure of 1,797 psig and shut in casing pressure of 3,810 psig. The 16-33 well was placed on-stream in January 2015. The well at 14-21-61-20 W5 (50%) was completed and at the end of a 53 hour clean-up flow period, the well was producing up casing at a rate of 5.3 MMcf per day with 545 barrels of field condensate per day (approximately 103 barrels of field condensate per MMcf) at a flowing casing pressure of 2,964 psig. The 14-21 well is currently undergoing equipping and tie-in with an estimated on-stream timing of early March 2015. The well at 02-25-62-22 W5 (50%), previously drilled and completed (see Yoho's press release October 29, 2014), is awaiting tie-in which is currently scheduled for early March 2015. During fiscal Q1, Yoho finished the drilling of a horizontal well at 16-12-59-19 W5 (formerly 01-13-59-19 W5) at a 100% working interest. Completion operations for this well are currently planned for after break-up. Yoho is also currently participating in the drilling of a Duvernay horizontal well at 14-08-61-20 W5 (33.3%).

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

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 on-stream timing of certain wells in the Kaybob area; Yoho's estimated production rate once all Duvernay wells are on production, and Yoho's estimates of average production for fiscal Q2 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.

BOE Equivalency

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.

Non-IFRS Financial Measures

This press release contains the term "funds from operations" and "funds from operations per share" which do not have any standardized meaning prescribed by IFRS. Management uses funds from operations and funds from operations per share to analyze operating performance and leverage and considers funds from operations to be a key measure as it demonstrates the Company's ability to generate the cash necessary to fund future capital investments and to repay debt. Funds from operations should not be considered an alternative to, or more meaningful than cash flow from operating activities as determined in accordance with IFRS as an indicator of the Company's performance. Therefore references to funds from operations or funds from operations per share (basic and diluted) may not be comparable with the calculation of similar measures for other entities. Yoho calculates funds from operations per share using the same method used in the determination of net income per share.

Yoho also uses "operating netbacks" and per boe metrics as key performance indicators. These terms do not have a standardized meaning prescribed by IFRS and therefore may not be comparable with the calculation of similar measures by other companies. Management considers netbacks an important measure as it demonstrates its profitability relative to current commodity prices. The Company uses this measure to help evaluate its performance.

Initial Production Rates

Any references in this news release to production 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. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Initial production rates may be estimated based on other third party estimates or limited data available at this time. Well-flow test result data should be considered to be preliminary until a pressure transient analysis and/or well-test interpretation has been carried out. In all cases in this news release initial production results are not necessarily indicative of long-term performance of the relevant well or fields or of ultimate recovery of hydrocarbons.

Selected Definitions

The following terms used in this press release have the meanings set forth below:

"boe" means barrel of oil equivalent of natural gas and crude oil on the basis of 1 boe for six thousand cubic feet of natural gas (this conversion factor is and industry accepted norm and is not based on either energy content or current prices)

"Mmcf" means one million cubic feet

"psig" means pounds per square inch gauge