CALGARY,
Nov. 27, 2012 /CNW/ - Ironhorse Oil
& Gas Inc. ("Ironhorse" or the "Company") (TSX-V: IOG)
announces its third quarter 2012 financial and operating
results.
Recent Developments:
- Funds from operations for the third quarter 2012 was an outflow
of $0.1 million ($0.00 per diluted share) compared to an inflow of
$0.3 million ($0.01 per diluted share) for the third quarter of
2011 as a result of the dispositions in late 2011 with no
significant replacement of reserves until Pembina comes onto
production.
- Net debt at September 30, 2012
was $3.3 million within current
credit facilities of $5.0 million
compared to net debt at December 31,
2011 of $7.8 million.
- The Company and its partners continue to work with the ERCB and
Pembina area residents in order to obtain regulatory approvals to
complete the final development and production plans for its Pembina
oil wells. The wells are expected to come on production by the
fourth quarter of 2013 at an initial restricted rate of 2,000 (310
net) boe/d.
- In November 2012, Tim Veenstra, Chief Operating Officer, left the
Company. His services were provided under the management contract
with Grizzly Resources Ltd.
|
|
SELECTED INFORMATION |
For three months ended |
|
September 30 |
June 30 |
September 30 |
($ thousands except
per share & unit amounts) |
2012 |
2012 |
2011 |
Financial |
|
|
|
Petroleum and natural gas revenues
(1) |
451 |
421 |
1,671 |
Funds from operations
(2) |
(85) |
(146) |
258 |
|
Per share - basic and diluted |
0.00 |
(0.01) |
0.01 |
Net (loss) income |
(318) |
(256) |
(1,644) |
|
Per share - basic and diluted |
(0.01) |
(0.01) |
(0.06) |
Capital expenditures
(3) |
186 |
125 |
626 |
Operation |
|
|
|
Production |
|
|
|
|
Oil (bbl/d) |
51 |
63 |
89 |
|
Gas (mcf/d) |
355 |
4 |
3,139 |
|
Total (boe/d) |
110 |
64 |
612 |
Petroleum and natural gas revenues
($/boe) |
44.32 |
73.14 |
29.69 |
Royalties ($/boe) |
(9.38) |
(24.51) |
(7.65) |
Operating expenses ($/boe) |
(18.60) |
(30.59) |
(8.79) |
Operating netback ($/boe) |
16.34 |
18.04 |
13.25 |
(1) Petroleum and
natural gas revenues are before royalty expense.
(2) Funds from operations
and net debt are non-GAAP measures as defined in the Advisory
section of the MD&A.
(3) Capital expenditures are
before acquisitions and dispositions. |
Additional Information
Ironhorse's complete results for the three and
nine months ended September 30, 2012,
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.