CALGARY, April 16, 2015 /CNW/ - Ironhorse Oil &
Gas Inc. ("Ironhorse" or the "Company") (TSX-V: IOG) announces its
fourth quarter and full year 2014 financial and operating
results.
Highlights of 2014:
- Funds from operations increased to $535,000 for the year ended December 31, 2014 from negative $4,000 for the year ended December 2013.
- The Company's proved producing reserve volumes increased to 89%
of Total Proved reserves at December 31,
2014 as compared to 2% of Total Proved reserves at
December 31, 2013 as the Company's
Pembina reserves were brought on stream.
- In October 2014, Sinopec Canada
initiated expansion of the 13-2 facilities, which was completed in
March 2015. This expansion was
required in order to produce the Pembina Nisku wells at full
capacity.
Outlook for 2015:
In March 2015, Sinopec Canada
completed expansion of the 13-2 battery which required installation
of additional sour gas compression, group inlet separation and
vapour recovery capacity.
Currently the Pembina L2L pool is producing from both the 09-05
and 14-05 wells at an average combined rate of 1700 boe/d gross
(265 boe/d net) at restricted choked rates. Water injection
into the 10-05 injection well is at 2500 barrels of water per day.
Oil production from the two wells is anticipated to be brought up
to full production capacity by the end of April 2015.
A special committee comprised of independent members of the
Board of Directors has been formed and a financial advisor will be
engaged to review options available to the Company to maximize
shareholder value.
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SELECTED
INFORMATION
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Three months
ended
December 31
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Year ended
December 31
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($ thousands except
per share & unit amounts)
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2014
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2013
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2014
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2013
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Financial
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Petroleum and natural
gas revenues (1)
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545
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130
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1,429
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1,590
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Funds from operations
(2)
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123
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(75)
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535
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(4)
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Per share – basic and
diluted
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0.01
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-
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0.02
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-
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Net income
(loss)
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(331)
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(277)
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(221)
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(1,713)
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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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(0.01)
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(0.06)
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Capital expenditures
(3)
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13
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756
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666
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870
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Operation
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Production
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Gas
(mcf/d)
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150
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159
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129
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375
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Oil & NGL
(bbl/d)
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77
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9
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40
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36
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Total
(boe/d)
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102
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36
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62
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99
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Petroleum and natural
gas revenues ($/boe)
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57.84
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38.84
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63.16
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44.00
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Royalties
($/boe)
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17.86
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6.03
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10.00
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11.56
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Operating expenses
($/boe)
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17.50
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0.64
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14.58
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13.85
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Operating netback
($/boe)
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22.48
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32.17
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38.58
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18.59
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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 year ended December 31, 2014,
including audited financial statements and the management's
discussion and analysis, statement of reserves data and other oil
and gas information 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.