CALGARY,
May 29, 2015 /CNW/ - Ironhorse
Oil & Gas Inc. ("Ironhorse" or the "Company") (TSX-V: IOG)
announces its financial and operating results for the three months
ended March 31, 2015.
Financial and Operation Summary
Mid March 2015,
Sinopec Canada completed expansion of the 13-2 battery which
required installation of additional sour gas compression, group
inlet separation and vapour recovery capacity. Re-start of
production from the Pembina Nisku L2L pool, post 13-2 facility
upgrade, began on March 21, 2015.
Currently the Pembina L2L pool is producing from
both the 09-05 and 14-05 wells at an average combined rate of 2,000
boe/d gross (315 boe/d net) at restricted choked rates. Water
injection into the 10-05 injection well is at 3,000 barrels of
water per day. Oil production from the two wells is anticipated to
continue to increase as facility related downtime issues and
TransCanada pipeline restrictions are resolved concurrent with well
production rate optimization activities by facility operator
Sinopec.
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SELECTED
INFORMATION
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For three months
ended
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March
31,
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December
31,
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March 31,
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($ thousands except
per share & unit amounts)
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2015
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2014
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2014
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Financial
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Petroleum and natural
gas revenues (1)
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248
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545
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134
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Funds from operations
(2)
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(68)
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123
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(44)
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Per share – basic and
diluted
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-
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0.01
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-
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Net loss
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(159)
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(331)
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(82)
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Per share – basic and
diluted
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(0.01)
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(0.01)
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-
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Capital expenditures
(3)
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20
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12
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636
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Operation
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Production
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Light Oil & NGL
(bbl/d)
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52
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77
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8
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Gas
(mcf/d)
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171
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150
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124
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Total
(boe/d)
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81
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102
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28
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Petroleum and natural
gas revenues ($/boe)
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34.27
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57.84
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52.87
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Royalties
($/boe)
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13.96
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17.86
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10.85
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Operating expenses
($/boe)
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16.89
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17.50
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11.77
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Operating netback
($/boe)
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3.42
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22.48
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30.25
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(1)
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Petroleum and
natural gas revenues are before royalty expense.
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(2)
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Funds from
operations and net debt are non-GAAP measures as defined in the
Advisory section of the MD&A.
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(3)
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Capital
expenditures are before acquisitions and
dispositions.
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Additional Information
Ironhorse's complete results for the three months
ended March 31, 2015, including
unaudited condensed financial statements and the management's
discussion and analysis are available on SEDAR or the Company's web
site at www.ihorse.ca
About Ironhorse:
Ironhorse Oil & Gas Inc. is a Calgary-based junior oil and natural gas
production company trading on the TSX Venture Exchange under the
symbol "IOG."
Forward-looking statements:
Statements throughout this release that are
not historical facts may be considered to be "forward looking
statements." These forward looking statements sometimes include
words to the effect that management believes or expects a stated
condition or result. All estimates and statements that describe the
Company's objectives, goals, or future plans, including
management's assessment of future plans and operations, drilling
plans and timing thereof, expected production rates and additions
and the expected levels of activities may constitute
forward-looking statements under applicable securities laws and
necessarily involve risks including, without limitation, risks
associated with oil and gas exploration, development, exploitation,
production, marketing and transportation, volatility of commodity
prices, imprecision of reserve estimates, environmental risks,
competition from other producers, incorrect assessment of the value
of acquisitions, failure to complete and/or realize the anticipated
benefits of acquisitions, delays resulting from or inability to
obtain required regulatory approvals and ability to access
sufficient capital from internal and external sources and changes
in the regulatory and taxation environment. As a consequence, the
Company's actual results may differ materially from those expressed
in, or implied by, the forward-looking statements. Forward-looking
statements or information are based on a number of factors and
assumptions which have been used to develop such statements and
information but which may prove to be incorrect. Although the
Company believes that the expectations reflected in such
forward-looking statements or information are reasonable, undue
reliance should not be placed on forward-looking statements because
the Company can give no assurance that such expectations will prove
to be correct. In addition to other factors and assumptions which
may be identified in this document, assumptions have been made
regarding, among other things: the ability of the Company to obtain
equipment and services in a timely and cost efficient manner;
drilling results; the ability of the operator of the projects which
the Company has an interest in to operate the field in a safe,
efficient and effective manor; and field production rates and
decline rates. Readers are cautioned that the foregoing list of
factors is not exhaustive. Additional information on these and
other factors that could affect the Company's operations and
financial results are included elsewhere herein and in reports on
file with Canadian securities regulatory authorities and may be
accessed through the SEDAR website (www.sedar.com). Furthermore,
the forward-looking statements contained in this release are made
as at the date of this release.
Boe Conversion – Certain natural gas volumes
have been converted to barrels of oil equivalent ("boe") whereby
six thousand cubic feet (mcf) of natural gas is equal to one barrel
(bbl) of oil. This conversion ratio is based on an energy
equivalency conversion applicable at the burner tip and does not
represent a value equivalency at the wellhead.
"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."
SOURCE Ironhorse Oil & Gas Inc.