Ironhorse Announces Q1 2013 Financial and Operating Results

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.

For further information:

Larry J. Parks
President & Chief Executive Officer
(403) 355-3620
lparks@ihorse.ca

Karen Hutson
VP Finance & Chief Financial Officer
(403) 355-3620
khutson@ihorse.ca
www.ihorse.ca


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