CALGARY, May 28, 2014 /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, 2014 and provides an operational update
on activities to date this year as well as an outlook for the
remainder of 2014.
Financial and Operation Summary
The Company's working capital position remained
strong with positive working capital of $2.2
million at March 31, 2014
compared to $2.9 million at
December 31, 2013. The
reduction in working capital is largely due to the Company's
working interest share in the drilling and abandonment costs of the
1-8 Pembina Nisku well and facility and completion costs associated
with bringing the remaining L2L oil wells on production.
On March 5, 2014
the Company, along with its working interest partners initiated the
first production in the Nisku L2L
pool from the 100/09-05-050-06W5M/00 well. For the 27 days on
production during first quarter 2014, the well produced an average
of approximately 123 bbls/d of oil (net 19 bbls/d) and 119 mcf/d
(net 19 mcf/d) of natural gas for a combined 143 boe/d (net 22
boe/d). Production was restricted during this period due to
insufficient blend gas at the battery facility. The
Nisku formation has a high
concentration of H2S and additional natural gas is blended to bring
the produced natural gas to acceptable specifications for delivery
and sales.
Production from the Nisku wells will continue to be restricted to
the first quarter rates until a sufficient and stable volume of
blend gas is available at the battery facility. The facility
operator has commenced the completion of a pipeline to bring
natural gas directly from a nearby natural gas processing
facility. This will ensure a stable supply of blend gas
necessary to produce the Nisku
wells at higher rates. The Company anticipates that the
pipeline will be complete by mid June
2014. The Company will not participate in the cost of
construction of the blend gas pipeline as the need for blend gas
was identified and agreed as responsibility of the facility
operator.
SELECTED INFORMATION |
|
For the three months ended |
|
|
March 31, |
December 31, |
March 31, |
($ thousands except per share & unit
amounts) |
|
2014 |
2013 |
2013 |
Financial |
|
|
|
|
Petroleum and natural gas revenues
(1) |
|
134 |
130 |
571 |
Funds from operations (2) |
|
(44) |
(73) |
37 |
Per share - basic and diluted |
|
- |
- |
- |
Net loss |
|
(82) |
(277) |
(212) |
Per share - basic and diluted |
|
- |
(0.01) |
(0.01) |
Capital expenditures (3) |
|
636 |
756 |
5 |
Operation |
|
|
|
|
Production |
|
|
|
|
Oil (bbl/d) |
|
8 |
9 |
54 |
Gas (mcf/d) |
|
124 |
159 |
630 |
Total (boe/d) |
|
28 |
36 |
159 |
Petroleum and natural gas revenues ($/boe) |
|
52.87 |
38.84 |
40.06 |
Royalties ($/boe) |
|
10.85 |
6.03 |
11.71 |
Operating expenses ($/boe) |
|
11.77 |
0.64 |
13.17 |
Operating netback ($/boe) |
|
30.25 |
32.17 |
15.18 |
(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, 2014,
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.