Ironhorse Announces 2014 Reserves

CALGARY, March 17, 2015 /CNW/ - Ironhorse Oil & Gas Inc. ("Ironhorse" or the "Company") (TSX-V: IOG) announces its 2014 year-end reserves information

The Company's year-end reserves evaluation with the effective date of December 31, 2014 was prepared by GLJ Petroleum Consultants Ltd. and Sproule Associates Limited in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and NI 51-101 "Standards of Disclosure for Oil & Gas Activities".  Reserves included herein are stated on a company gross basis (working interest before deduction of royalties without including any royalty interest) unless otherwise noted. 

Reserves Summary – Oil Equivalent (Mboe)







(Mboe)


Proved
Producing


Proved
Developed
Non-Producing


Proved
Undeveloped


Total Proved


Total Probable


Proved plus
Probable

2013


12


625


-


637


172


809

2014


556


68


-


624


176


799

 

Net Present Value Summary(1)







($ thousands)


Proved
Producing


Proved
Developed
Non-Producing


Proved
Undeveloped


Total
Proved


Total
Probable


Total
Proved plus
Probable

10%


12,654


468


-


13,122


5,261


18,383

15%


11,407


335


-


11,742


4,900


16,643

(1) Net present value summary is before income taxes







 

Reserves Reconciliation - Oil Equivalent (Mboe)













(Mboe)















Total
Proved


Total
Probable


Total
Proved plus
Probable

December 31, 2013















637


172


809

Technical Revisions















9


4


13

Dispositions















-


-


-

Economic Factors















-


-


-

Production















(23)


-


(23)

December 31, 2014















624


176


799

 

Net Asset Value ("NAV") before income tax – Discounted at 10%




($ thousands except share and per share data)








December 31,
2014


December 31,
2013

Net present value-proved and probable








18,383


27,052

Net working capital (1)








2,451


2,815

Net asset value








20,834


29,867

Common shares outstanding








27,885,824


27,860,824

NAV per share, December 31








0.75


1.07

(1) Net working capital at December 31, 2014 is unaudited and final audited results may vary




 

Sproule Price Forecasts as of December 31, 2014 (1)



Year







Canadian Light Sweet Oil Price At Edmonton

40o API

($Cdn/bbl)


AECO/NIT   Spot Gas

Price

($Cdn/Mmbtu)

2015







70.35


3.32

2016







87.36


3.71

2017







98.28


3.90

2018







99.75


4.47

2019







101.25


5.05

2020







103.85


5.13

2021







105.40


5.22

2022







106.99


5.31

2023







108.59


5.40

2024







110.22


5.49

2025







111.87


5.58

Thereafter







+1.5%/year


+1.5%/year











(1) This summary table identifies benchmark reference pricing schedules that might apply to a reporting issuer.

 

Additional Information

Ironhorse's complete 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, environmental risks, competition from other producers, incorrect assessment of the value of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, changes in the regulatory and taxation environment, and imprecision of reserve estimates. The discounted and undiscounted net present value of future net revenues attributable to reserves do not represent the fair market value of reserves; there is no assurance that the forecast prices and costs assumptions will be attained and variances could be material. The recovery and reserve estimates of crude oil, NGL and natural gas reserves are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and NGL reserves may be greater than or less than the estimates provided; the estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation. 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. Additional information on these and other factors that could affect the Company's operations and financial results are included 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; Karen Hutson, VP Finance & Chief Financial Officer, (403) 355-3620

RELATED LINKS
www.ihorse.ca

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