Yoho Resources gains from unconventional discoveries

A Calgary-based junior oil and gas company has chosen to go off the beaten path to gain first mover advantage, and thereby improve its competitiveness against oil majors. Yoho Resources is among the few early explorers of unconventional shale plays within the Western Canadian Sedimentary Basin.

"We went in early because that's the only way a junior company like us could compete," says president and CEO Brian McLachlan. "With that strategic move, we established a good land position in the Duvernay, a world-class, liquid-rich gas play."

Using multistage hydraulic fracking, Yoho was the first to crack the Duvernay formation in 2009, making it a pioneer in the region.

The Duvernay, located in Kaybob, west central Alberta, yields very high liquids with the natural gas produced and 65 per cent of those liquids is condensate, which receives a slightly higher price than premium quality oil. "We are very excited about the potential of the Duvernay," McLachlan says. "We believe our lands are located right in the sweetest spot of the whole play."

Another unconventional play Yoho is developing is the Jean Marie in Mike, British Columbia. Yoho produced an average 2,337 barrels of oil equivalent (boe) per day during the last fiscal year, up by 6 per cent from 2,207 boe per day in fiscal 2012. With its proved plus probable reserves reaching 52.7 million boe in the last fiscal year (as evaluated by GLJ Petroleum Consultants), Yoho is well-positioned for the future. Its estimated reserves surged 92 per cent from 27.4 million boe in fiscal 2012.

"We aim to maintain our steady growth while keeping our costs in line," McLachlan says. "We are also working up new ideas for strategic land acquisition and possible alternative sources of funds."

Yoho Resources
www.yohoresources.ca