Business
Ironhorse Announces Second Quarter 2011 Financial and Operating Results
CALGARY, Aug. 24, 2011 /CNW/ - Ironhorse Oil Gas Inc. ("Ironhorse" or the "Company") (TSX-V: ...
About this update from Pond Technologies Holdings Inc.
[{"type":"text","content":"\n\n\n\n\n\nCALGARY, Aug. 24, 2011 /CNW/ - Ironhorse Oil Gas Inc. (\"Ironhorse\" or\n the \"Company\") (TSX-V: IOG) has released its financial and operating\n results for the period ended June 30, 2011.\n\n\nHighlights and accomplishments achieved during the quarter include:\n\n\nThe Company reached an agreement with its partners to tie-in and process\n production from its two (0.4 net) prolific Nisku oil wells at Pembina,\n Alberta. Ironhorse agreed to reduce its production working interest\n from 18.75% to 15.63% in exchange for one of its partners paying the\n capital costs associated with the facilities and the construction of\n pipelines from the wells to the oil battery. The Company and its\n partners plan to drill two additional wells (one producer, one\n injector) in the fall of 2011. The projected on-stream production date\n is January 2012.  Production is expected to start at a gross rate of\n 1,350 (210 net) barrels of oil equivalent (boe) per day and be\n increased over time to an optimal rate of 4,000 (600 net) boe per day\n when the Company and its partners implement an enhanced oil recovery\n program.\n\n\nIronhorse sold its working interest at Lochend, Alberta for $0.4\n million. The property had nominal production.\n\n\nThe Company achieved funds from operations for the six months ended June\n 30, 2011 of $1.4 million ($0.05 per diluted share) compared to $2.5\n million ($0.10 per diluted share) over the same period in 2010.\n\n\nIronhorse and Copper Island Resources Ltd. (\"CIRL\") agreed to extend the\n option to equalize their respective Hamilton Lake, Alberta lands which\n are prospective for Viking oil. Ironhorse initially acquired four\n sections of land in February 2011 at a cost of $0.5 million and CIRL\n acquired 19.75 sections in March 2011 at a cost of $4.5 million. This\n summer CIRL drilled, completed and placed on production a horizontal\n Viking oil well at a cost of $2.5 million. In order to exercise its\n option to equalize, Ironhorse must pay its share of all costs incurred\n to date or approximately $3.5 million. CIRL agreed to extend the\n equalization payment deadline until October 31, 2011 in exchange for\n Ironhorse transferring its interest in the four sections acquired in\n February to CIRL for $1.00. If Ironhorse makes the equalization\n payment, CIRL will transfer back a 50% worki...