CALGARY, Nov. 19, 2013 /CNW/ - Ironhorse Oil & Gas Inc. ("Ironhorse" or the "Company") (TSXV: IOG) announces its third quarter 2013 financial and operating results.
- Funds from operations for Q3 2013 were $24,000 (nil per diluted share) compared to an outflow of $85,000 ($0.01 per diluted share) for Q3 2012.
- Working capital was $3.8 million at September 30, 2013 including assets held for sale compared to net debt of $3.3 million at December 31, 2012.
- Production averaged 120 boe/d during the nine months ended September 30, 2013 up 48% compared to the same period in 2012.
- Subsequent to September 30, 2013, the Company entered into a purchase and sale agreement to sell its working interest in the Leon Lake area of south west Saskatchewan for $7.2 million. Proceeds will be used to repay bank indebtedness and fund the Company's working interest share of final capital requirements to bring the Pembina Nisku oil property on production. The sale is scheduled to close November 27, 2013.
- Alberta Energy Regulator (AER) rendered a decision on October 31, 2013 approving the completion of all Pembina related pipelines, facilities and the drilling of the Pembina 1-8 well. Once Pembina commences production, the Board of Directors will consider strategic alternatives to maximize shareholder value.
|SELECTED INFORMATION||For three months ended||For nine months ended|
|September 30,||September 30,|
|($ thousands except per share & unit amounts)||2013||2012||% change||2013||2012||% change|
|Petroleum and natural gas revenues (1)||441||451||(2%)||1,461||1,404||4%|
|Funds from operations (2)||24||(85)||128%||69||(494)||114%|
|Per share - basic and diluted||-||-||-||-||(0.01)||100%|
|Net (loss) income||(1,015)||(318)||(220%)||(1,436)||(1,159)||(24%)|
|Per share - basic and diluted||(0.03)||(0.01)||(200%)||(0.05)||(0.04)||-|
|Capital expenditures (3)||65||186||(65%)||114||537||(79%)|
|Petroleum and natural gas revenues ($/boe)||53.34||44.32||20%||44.52||63.33||(30%)|
|Operating expenses ($/boe)||(18.33)||(18.60)||(1%)||(15.20)||(26.21)||(42%)|
|Operating netback ($/boe)||20.73||16.34||27%||17.20||18.35||(6)%|
|(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.|
Ironhorse's complete results for the three and nine months ended September 30, 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
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."
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