Business
Ironhorse Oil & Gas Inc. Announces 2009 First Quarter Results
Ironhorse Oil & Gas Inc. Announces 2009 First Quarter Results
About this update from Pond Technologies Holdings Inc.
[{"type":"text","content":"\nIronhorse Oil & Gas Inc. Announces 2009 First Quarter Results\n\n\n May 21, 2009 (Filing Services Canada) -- Ironhorse Oil & Gas Inc. (IOG - TSX Venture), is pleased to report its first quarter results for 2009. Highlights and accomplishments achieved during the quarter include:* Ironhorse drilled, completed and placed on production 32 (16 net) gas wells in the Shackleton, Saskatchewan area bringing the total number of producing gas wells to 100 (50 net) which increased our production to a peak rate of 1,350 boe per day in March.* The Company drilled two (0.4 net) oil wells in the Pembina, Alberta area. These wells were completed and production tested in late April and early May. On a combined basis the two wells flowed oil at rates of over 3,200 barrels per day plus associated solution gas and liquids, bringing the gross production rate from the two wells to 4,000 boe per day. We expect to initially place the wells on production in the fourth quarter at 1,000 (200 net) boe per day and subsequently increase the production from these wells to 4,000 (800 net) boe per day when we establish a pressure maintenance scheme and receive \"good production practice\" approval.* For the three months ended March 31, 2009 production averaged 1,089 boe per day, an 18% increase from the 921 boe per day in the fourth quarter of 2008.* Gas prices for the first quarter averaged $5.16 per mcf compared to $6.72 in the fourth quarter of 2008 and $7.29 for the corresponding quarter in 2008.* Cash flow from operations was $1.5 million ($0.07 per diluted share) compared to $1.7 million ($0.09 per diluted share) in the first quarter of 2008.* Capital expenditures of $6 million represent approximately 60% of planned capital expenditures for 2009.* The new Shackleton gas wells will significantly increase our proved producing reserves and the Pembina oil wells will increase our proved reserves. We plan to have an updated reserve report prepared by our independent reserve engineers in the second quarter of 2009.* Net debt at March 31, 2009 was $11.3 million. The Company's banker completed its interim review of our credit facilities and confirmed the amount available at $14.5 million. We believe the discoveries made in the first quarter will allow Ironhorse to maintain or increase its credit facility when the annual review is done this summer. An overvi...