CALGARY,
May 17, 2013 /CNW/ - Ironhorse Oil
& Gas Inc. ("Ironhorse" or the "Company") (TSX-V: IOG)
announces its first quarter 2013 financial and operating
results.
Highlights:
- Funds from operations for the first quarter 2013 were
$0.04 million ($0.00 per diluted share) compared to an outflow
of $0.4 million ($0.01 per diluted share) for the first quarter of
2012 as a result of reductions in operating and G&A expenses in
Q1 2013 as compared with Q1 2012.
- Net debt at March 31, 2013 was
$3.2 million within credit facilities
of $5.0 million compared to net debt
at December 31, 2012 of $3.3 million.
- The Company's reserves are 83% oil weighted with a proved to
probable ratio of 71 to 29. The Company's primary asset is
its working interest in Pembina which currently consists of two
shut-in oil wells and one water injection well, with total proved
plus probable reserves at 10% net present value of $33.6 million at December
31, 2012. The Pembina wells have remained shut-in awaiting
regulatory approvals required to commence the necessary
infrastructure modifications and pipeline installations. The
ERCB has currently proposed a hearing date of July 2, 2013 to review these approvals in
conjunction with regulatory approvals for the licensing of the
Pembina 1-8 well. The oil wells at Pembina are expected to be
placed on production in the first quarter of 2014 at an initial
restricted rate of 2,000 (310 net) boe/d. Once the wells are on
production, the Company and its partners will make application for
the Nisku oil pool to receive Good
Production Practice ("GPP") approval from the ERCB. GPP approval
will allow production rates from the Nisku oil pool to be increased to an estimated
4,000 (600 net) boe/d.
|
|
|
SELECTED INFORMATION |
|
For three months
ended |
|
|
March 31, |
December 31, |
March 31, |
($ thousands except
per share & unit amounts) |
|
2013 |
2012 |
2012 |
Financial |
|
|
|
|
Petroleum and natural gas revenues
(1) |
|
571 |
649 |
532 |
Funds from operations
(2) |
|
37 |
136 |
(361) |
|
Per share - basic and diluted |
|
0.00 |
0.00 |
(0.01) |
Net (loss) income |
|
(212) |
270 |
(585) |
|
Per share - basic and diluted |
|
(0.01) |
0.01 |
(0.02) |
Capital expenditures
(3) |
|
5 |
73 |
226 |
Operation |
|
|
|
|
Production |
|
|
|
|
|
Oil (bbl/d) |
|
54 |
60 |
68 |
|
Gas (mcf/d) |
|
630 |
741 |
3 |
|
Total (boe/d) |
|
159 |
184 |
69 |
Petroleum and natural gas revenues
($/boe) |
|
40.06 |
38.39 |
85.33 |
Royalties ($/boe) |
|
(11.71) |
(6.55) |
28.80 |
Operating expenses ($/boe) |
|
(13.17) |
(13.26) |
34.58 |
Operating netback ($/boe) |
|
15.18 |
18.58 |
21.95 |
(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
months ended March 31, 2013,
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.