Business
Ironhorse sells Shackleton gas property to focus on oil at Pembina, Leon Lake
CALGARY, Oct. 13, 2011 /CNW/ - Ironhorse Oil & Gas Inc. ("Ironhorse" or the "Company") (T...
About this update from Pond Technologies Holdings Inc.
[{"type":"text","content":"\n\n\n\n\n\nCALGARY, Oct. 13, 2011 /CNW/ - Ironhorse Oil & Gas Inc. (\"Ironhorse\" or\n the \"Company\") (TSX-V: IOG) is pleased to announce that it has entered\n into an agreement to sell its 50% working interest in the Shackleton,\n Saskatchewan gas property for cash consideration of $10.2 million\n effective August 1, 2011 with an anticipated closing date of October\n 26, 2011. Pursuant to the terms of the agreement, the purchaser has\n placed a cash deposit, equal to 10% of the purchase price, in trust\n with their legal advisers.\n\n\n\"The sale of our natural gas property gives us running room to pursue\n our opportunity rich oil prospects,\" said Larry Parks, Ironhorse's\n President & CEO. \"This disposition allows us to complete the transition\n to an oil-based production and reserves growth platform\".\n\n\nNet proceeds from the sale of the Shackleton property will be used to\n pay down the Company's outstanding bank debt which is approximately\n $14.5 million. Subsequent to the sale of the Shackleton property the\n Company's lender has agreed to a $10.2 million credit facility\n comprised of a $6.1 million primary revolving facility and a $4.1\n million bridge facility. The bridge facility is available to finance\n the on-stream development costs for the Company's proven oil reserves\n at Pembina, Alberta as well as the drilling of new oil opportunities at\n Leon Lake, Saskatchewan. The bridge facility matures on March 30, 2012\n at which time the Company expects to have its Pembina oil wells on\n production. The Company is actively marketing its interest in the\n Pembina property in order to monetize the value of the property.\n\n\nIronhorse estimates its daily production rate after closing the sale of\n Shackleton property will be 75 boe per day. The daily production rate\n is expected to increase in March 2012 when the two (0.3 net) Pembina\n oil wells are placed on production at a gross rate of 2,000 (300 net)\n boepd. In October the Company participated in the drilling of a third\n well at Pembina which encountered significant Nisku oil pay. The latest\n Pembina well was drilled as a pressure maintenance well in anticipation\n of submitting an application to produce the two existing Pembina oil\n wells pursuant to good production practices (\"GPP\"). GPP will allow the\n Pembina oil wells to produce at hig...