At Howard in the south Peace River Arch, one (0.34 net) gas well was drilled and placed on production April 1, 2009 at a gross rate of 2.1 mmcf per day. In addition to this at Howard, Yoho Resources has newly increased its working interest in the area through the acquisition of its partner’s interest. This acquisition added about 100 boe per day to the company’s net production. At McLeod in central Alberta, one (0.5 net) gas well was drilled in fiscal 2009 and a pipeline loop was built to improve the curtailment of the three producing wells in the area. Further wells were drilled at Boundary and at Gold Creek and completion operations on these cased gas wells will continue with higher commodity prices.
Capital expenditures so far in fiscal 2009 are anticipated at $12 million with a further $1.8 million for the acquisition in the Howard area. Total debt after Yoho Resources winter drilling program and the company’s recent acquisition is at present projected at $26 million on a bank line of $32 million. Yoho Resources expects existing debt levels will decrease over the next six months due to higher production levels and a reduced capital program.
Outlook
With reduced natural gas prices, Yoho Resources is presently scheduling a capital program for fiscal 2009 of between $14 and $17 million that comprises plans to drill a total of 15 (9.4 net) to 19 (11.4 net) wells for the period from October 1, 2008 to September 30, 2009.
Preliminary field work also began this winter on several unconventional prospects in Alberta and British Columbia that Yoho Resources technical team has been working on over the last year, the drilling of which will take place subject to natural gas prices. Yoho Resources at present has plans for a five to six well summer drilling program, which will proceed in June 2009, again, dependent on natural gas prices.
