Ironhorse Announces 2014 Fourth Quarter and Year End Results

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.









SELECTED INFORMATION




Three months ended
December 31



Year ended December 31

($ thousands except per share & unit amounts)




2014



2013



2014



2013

Financial














Petroleum and natural gas revenues (1)




545



130



1,429



1,590

Funds from operations (2)




123



(75)



535



(4)


Per share – basic and diluted




0.01



-



0.02



-

Net income (loss)




(331)



(277)



(221)



(1,713)


Per share – basic and diluted




(0.01)



(0.01)



(0.01)



(0.06)

Capital expenditures (3)




13



756



666



870

Operation














Production















Gas (mcf/d)




150



159



129



375


Oil & NGL (bbl/d)




77



9



40



36


Total (boe/d)




102



36



62



99

Petroleum and natural gas revenues ($/boe)




57.84



38.84



63.16



44.00

Royalties ($/boe)




17.86



6.03



10.00



11.56

Operating expenses ($/boe)




17.50



0.64



14.58



13.85

Operating netback ($/boe)




22.48



32.17



38.58



18.59

(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 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.

For further information: Larry J. Parks, President & Chief Executive Officer, (403) 237-9600, lparks@grizzlyresources.com; Karen Hutson, VP Finance & Chief Financial Officer, (403) 237.9600, khutson@grizzlyresources.com, www.ihorse.ca

RELATED LINKS
www.ihorse.ca

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