Business
Ironhorse Announces Q2 2014 Financial and Operating Results
CALGARY , Aug. 29, 2014 /CNW/ - Ironhorse Oil & Gas Inc. ("Ironhorse" or the "Company...
About this update from Pond Technologies Holdings Inc.
[{"type":"text","content":"\n\nCALGARY, Aug. 29, 2014 /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, 2014 and provides an operational update on activities to date this year as well as an outlook for the remainder of 2014.  \n\nFinancial and Operation Summary \n\nThe Company's working capital position has remained strong at $2.3 million at June 30, 2014, compared with $2.2 million at March 31, 2014. Although the Pembina Nisku wells were placed on production in early March of 2014, the Company's reported Q2 production has stayed flat at 30 boe/d, as compared to the first quarter of 2014. Production from the Pembina wells was restricted due to insufficient blend gas volumes at the Sinopec Daylight Energy Ltd. (Sinopec) operated 13-2 battery. \n\nSince onset of production in early March of 2014, the Company's share of sales volume from the Nisku L2L pool was 1,700 boe. The Pembina Nisku producing wells are tied in to the Sinopec operated 13-2 battery and are contract operated by Sinopec. The two wells produced intermittently throughout the quarter due to insufficient blend gas at the battery site. The licensed maximum hydrogen sulphide (H2S) concentration of the pipeline leaving the 13-2 battery requires the solution gas from the two Nisku wells be reduced to 10% using a blend gas stream. Sinopec had indicated sufficient blend gas volumes would be available throughout the quarter from new wells being brought on production to the 13-2 battery.  However, the blend gas volumes producing to the 13-2 battery were not sufficient to reduce the H2S levels to the required pipeline specifications which resulted in the Pembina production being severely restricted.\n\nAn alternative source of blend gas was obtained which required construction and tie in of a gas pipeline to the Sinopec battery.   On July 17, 2014 the tie in for blend gas was completed and test production began. The Pembina 9-05 well was brought back on production for testing. The Pembina 9-05 well was tested for 11 days at an average of 600 gross bbls/d of oil (net 94 bbls/d), at a 16% choke rate (choked back 84%).  The 9-05 well was then shut in and the 14-05 commenced test at restricted rates. The flow rate, averaging 440 gross bbls/d of oil ...