Ironhorse Announces Q2 2015 Financial and Operating Results

CALGARY, Aug. 27, 2015 /CNW/ - Ironhorse Oil & Gas Inc. ("Ironhorse" or the "Company") (TSX-V: IOG) announces its financial and operating results for the three and six months ended June 30, 2015.

Financial and Operation Summary

The Company's reported production has increased 213% to 254 boe/d in the second quarter of 2015 from 81 boe/d produced in the first quarter. This increase in production is a result of the Company's Pembina production from the L2L pool being produced at increased rates as compared with Q1.  Sinopec Canada completed the expansion at their 13-2 battery in March 2015 which included additional sour gas compression, group inlet separator and process equipment necessary for handling increased production from the Pembina L2L pool.  Commencing in April both the 9-05 and 14-05 wells produced concurrently into Sinopec's facility. 

In the second quarter, production from the Pembina L2L pool has averaged 1,632 boe/d (gross) as the wells production rates have been restricted due to compressor downtime, blend gas rate reliability and production curtailments at sales delivery points.

Water injection continues into the 10-05 injection well at 2,800 barrels of water per day, with the pool now being re-pressurized to original reservoir levels. Oil production from the two wells is anticipated to continue to increase as facility related downtime issues and TransCanada pipeline restrictions are resolved concurrent with well production rate optimization activities by facility operator Sinopec. 




SELECTED INFORMATION


For three months ended



June 30,

March 31,

June 30,

($ thousands except per share & unit amounts)


2015

2015

2014

Financial





Petroleum and natural gas revenues (1)


1,262

248

157

Funds from operations (2)


401

(68)

98


Per share – basic and diluted


0.01

-

-

Net income (loss)


(634)

(159)

51


Per share – basic and diluted


(0.02)

(0.01)

-

Capital expenditures (3)


3

20

-

Operation





Production






Light Oil & NGL (bbl/d)


215

52

11


Gas (mcf/d)


233

171

112


Total (boe/d)


254

81

30

Petroleum and natural gas revenues ($/boe)


54.70

34.27

57.59

Royalties ($/boe)


16.07

13.96

(3.53)

Operating expenses ($/boe)


16.44

16.89

11.36

Operating netback ($/boe)


22.19

3.42

49.76

(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 and six months ended June 30, 2015, 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) 237.9600; Karen Hutson, VP Finance & Chief Financial Officer, (403) 237.9600, www.ihorse.ca

RELATED LINKS
www.ihorse.ca

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