CALGARY, Jan. 19, 2016 /CNW/ - Ironhorse Oil & Gas
Inc. ("Ironhorse" or the "Company") (TSX-V:IOG), advises that the
operator of the Nisku L2L Pool
(the "Pool") has informed Ironhorse that the operator intends to
shut-in production from the Pool because continued production is
uneconomic under the current commodity price environment. Ironhorse
has a 15.6250% working interest in the Pool and the production from
the Pool is Ironhorse's main source of cash flow. Ironhorse
believes that, with continued downward pressure on commodity
prices, a temporary shut-in of the Pool production is a prudent
decision that will preserve the value of Ironhorse's oil and
natural gas reserves. The Company anticipates that the Pool
will remain shut-in until there is a recovery in commodity prices.
The operator has advised Ironhorse that the operator will be
executing a comprehensive shutdown program of the wells and
facilities to ensure the investment is preserved with an ability to
re-start when commodity prices recover. Notwithstanding
suspension of its main source of cash flow, Ironhorse is
financially well positioned, with existing positive working capital
and no debt.
Advisories
Forward-Looking Statements
This news release contains forward-looking information (as
defined in the Securities Act (Alberta)) and statements (collectively,
"forward-looking statements") that are based on expectations,
estimates and projections as of the date of this news release.
These forward-looking statements can often, but not always, be
identified by the use of forward-looking terminology such as
"plans", "predicts", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases, or statements that certain
actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved. Actual results and
developments are likely to differ, and may differ materially, from
those expressed or implied by the forward-looking statements
contained in this news release. Forward-looking statements
contained in this news release are based on a number of assumptions
that may prove to be incorrect, including, but not limited to
assumptions as to oil and gas prices and timing for commodity price
recovery; changes in laws, rules and regulations applicable to
Ironhorse; uncertainty of estimates with respect to reserves;
general economic, business and market conditions; and such other
risks and uncertainties identified in the filings by Ironhorse with
the Canadian provincial securities regulatory authorities. Except
as required by law, neither the Board nor Ironhorse undertakes any
obligation to update publicly or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. The forward-looking statements contained in this news
release are expressly qualified by this cautionary
statement.
Oil and Gas Advisories
This news release makes reference to barrels of oil
equivalent (boe). Boe's may be misleading, particularly if used in
isolation. A boe conversion ratio of 1 boe for 6 mcf of natural gas
is based on an energy equivalency conversion method primarily
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 policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Ironhorse Oil & Gas Inc.