Ironhorse Announces 2010 Financial and Operating Results

CALGARY, April 13 /CNW/ - Ironhorse Oil & Gas Inc. ("Ironhorse" or the "Company") (TSXV: IOG) has released its financial and operating results for the year ended December 31, 2010.

Highlights and accomplishments achieved during the year include:

  • Increased the oil and liquids weighting of our production profile and reserves with the discovery of oil at Dawson and Leon Lake. Oil now accounts for over 25 percent of total production and 34 percent of the Company's total reserves up from one percent and 28 percent respectively in 2009. Further increases in the oil weighting of our production profile are expected when the Pembina Nisku oil wells are placed on production.

  • Drilled two (1.1 net) Slave Point oil wells at Dawson, Alberta, these wells are currently producing at approximately 400 (220 net) bbls of oil per day.

  • Drilled two (1.8 net) Upper Shaunavon oil wells at Leon Lake, Saskatchewan. The first well was drilled horizontally the second well was drilled vertically the oil wells are currently producing 30 (25 net) bbls of oil per day. Ironhorse is planning to drill additional wells targeting the Upper Shaunavon oil bearing formation on a vertical basis and a horizontal well targeting the Lower Shaunavon.

  • Drilled one (0.8 net) gas well at Jedney, British Columbia, the well will be placed on production when gas prices increase.

  • Funds from operations for the year of $3.9 million ($0.15 per diluted share) compared to $3.9 million ($0.18 per diluted share) in 2009.

  • Capital expenditures for 2010 were $13.6 million as compared to $10.0 million in 2009.

  • Net debt at December 31, 2010 was $14.9 million versus credit facilities of $17 million.

On February 9, 2011, Ironhorse acquired a 100% working interest in 4.25 sections of land which are highly prospective for Viking oil. The Company has entered into an option agreement to acquire a 50% working interest in an additional 19.75 sections of land adjacent to its lands. In order to exercise the option, Ironhorse must make a cash payment of $1.7 million and equalize on its current land holdings in the area, when the agreement is finalized Ironhorse will have a 50% working interest in 24 contiguous sections of land in Central Alberta.

An overview of the 2010 financial and operating highlights for the quarter and years ended December 31 is set forth below:

  Three months ended December 31     Year ended December 31
             
SELECTED INFORMATION 2010 2009     2010 2009
Thousands dollars except per share amounts            
             
Financial            
Revenue 2,788 2,183     10,936 9,392
Royalties 684 567     2,303 2,387
Funds from operations 554 653     3,892 3,874
   Per share -diluted 0.02 0.03     0.15 0.18
Loss 366 313     1,241 1,495
   Per share - basic and diluted 0.01 0.01     0.05 0.06
Capital expenditures 140 2,609     13,561 10,004
             
Operations            
Production            
  Gas - mcf/d 3,947 5,560     4,465 6,363
  Oil - bbl/d 223 10     177 11
  Total - boe/d 881 937     922 1,071
             
Revenue - $/boe 34.41 25.34     32.51 24.02
Royalty - $/boe 8.44 6.58     6.85 6.10
Operating and transportation - $/boe 8.38 4.61     5.68 3.27
Field Netback - $/boe 17.59 14.15     19.98 14.65
General & administrative expenses - $/boe 8.10 3.95     6.26 3.60

Additional Information

Ironhorse's complete results for the year ended December 31, 2010, including audited financial statements and the management discussion and analysis, annual information form, 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

For further information:

Rob Solinger 
VP Finance & CFO
(403) 355-3620
rsolinger@ihorse.ca
www.ihorse.ca


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.