Business
Ironhorse Oil & Gas Inc. - Completes and Production Tests Pembina Oil Wells
Ironhorse Oil & Gas Inc. - Completes and Production Tests Pembina Oil Wells
About this update from Pond Technologies Holdings Inc.
[{"type":"text","content":"Ironhorse Oil & Gas Inc. - Completes and Production Tests Pembina Oil Wells\n\n\n\nIronhorse Oil & Gas Inc. - Completes and Production Tests Pembina Oil Wells\n\nCalgary, Alberta CANADA, May 05, 2009 /FSC/ - Ironhorse Oil & Gas Inc. (IOG - TSX Venture), (\"Ironhorse\" or the \"Company\") is pleased to provide the following operational update.\n\nOn February 18, 2009 the Company previously announced that it had drilled two (0.4 net) Nisku oil wells. In late April Ironhorse participated in the completion of both the 14-5-50-6W5 (\"14-5 well\") and 9-5-50-6W5 (\"9-5 well\") oil wells and performed an extensive production test on the 9-5 well. On a combined basis the two wells flowed oil at rates of over 3,200 barrels per day plus associated solution gas and liquids which brought the combined flow rates for the two wells to approximately 4,000 (800 net) boe per day. The 9-5 well produced approximately 2,500 barrels of light sour oil before being shut in.\n\nIronhorse together with its partners is expeditiously evaluating tie-in options which will allow the Company to produce the oil and gas. We expect the oil wells to be placed on production in the fourth quarter of 2009. The exact timing will depend on regulatory issues pertaining to the pipeline route. The two oil wells are initially expected to produce at a combined rate of 1,000 (200 net) boe per day. The production rates will subsequently be increased to over 4,000 (800 net) boe per day when the Company receives \"Good Production Practice\" approval by establishing a pressure maintenance scheme in order to optimize the recovery of oil. This will require the Company to participate in the drilling of a water source well and water injection well.\n\nThe Company is currently producing 1,300 boe per day primarily from its Shackleton property in Saskatchewan. During the first quarter the Company undertook capital expenditures of $6 million to drill, complete and place on production 32 (16 net) wells in Shackleton which brought the total number of producing gas wells to 100 (50 net) and to drill two (0.4 net) oil wells in Pembina. As a result of these capital expenditures net debt at the end of the March was $11.3 million. Ironhorse's banker recently completed its interim review and confirmed that our available credit facility would continue at $14.5 million with interest payable at p...