Ironhorse Announces First Quarter 2011 Financial and Operating Results

Jun. 23, 2011 (Canada NewsWire Group) --

CALGARY, June 23, 2011 /CNW/ - Ironhorse Oil & Gas Inc. ("Ironhorse" or the "Company") (TSXV: IOG) has released its financial and operating results for the period ended March 31, 2011.

Highlights and accomplishments achieved include:

• The Company reached agreement with its partners to tie-in and process production from its two (0.4 net) prolific Nisku oil wells at Pembina, Alberta. In the agreement Ironhorse agreed to reduce its production working interest from 18.75% to 15.63% in exchange for its partner paying for the capital costs associated with facilities and the tie-in of the wells to an existing facility system. The Company and its partners plan to drill two additional wells (1 producer, 1 injector) in third quarter of 2011. The projected on-stream production date has moved up 11 months to January 2012. Production will start at gross rate of 1,350 (200 net) boe per day and be increased over time to an optimal rate of 4,000 (600 net) boe per day when the Company and its partners fully implement an enhanced recovery scheme.
  
  
• Acquired a 100% working interest in 4.25 sections of land at Hamilton Lake, Alberta which are prospective for Upper Viking oil. These lands add up to 16 horizontal locations to the Company's drilling inventory.
  
  
• Has an option to acquire to acquire a 50% working interest in an additional 19.75 sections of land at Hamilton Lake, which would bring the Company's total land holdings to 24 (12 net) sections. This opportunity gives Ironhorse an additional 66 drilling locations for a total of 82 possible locations in the Viking. In order to complete the equalization, Ironhorse must make payment of $1.7 million prior to July 9, 2011. The Company is currently negotiating an extension of the expiry date.
  
  
• Funds from operations for the three months ended March 31, 2011 of $0.8 million ($0.3 per diluted share) compared to $1.3 million ($0.0.6 per diluted share) in 2010.

An overview of the financial and operating highlights for March 31, 2011 is set forth below:

Additional Information

Ironhorse's complete results for the quarter ended March 31, 2011, including unaudited interim financial statements and the management discussion are available on SEDAR or the Company's web site at www.ihorse.ca.

About Ironhorse

Ironhorse Oil & Gas Inc. is a Calgary-based junior oil and natural gas production company trading on the TSX Venture Exchange under the symbol "IOG."

Forward-looking statements:

Statements throughout this release that are not historical facts may be considered to be "forward looking statements." These forward looking statements sometimes include words to the effect that management believes or expects a stated condition or result. All estimates and statements that describe the Company's objectives, goals, or future plans, including management's assessment of future plans and operations, drilling plans and timing thereof, expected production rates and additions and the expected levels of activities may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, volatility of commodity prices, imprecision of reserve estimates, environmental risks, competition from other producers, incorrect assessment of the value of acquisitions, failure to complete and/or realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain reguired regulatory approvals and ability to access sufficient capital from internal and external sources and changes in the regulatory and taxation environment. As a consequence, the Company's actual results may differ materially from those expressed in, or implied by, the forward-looking statements. Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: the ability of the Company to obtain eguipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects which the Company has an interest in to operate the field in a safe, efficient and effective manner; and field production rates and decline rates. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company's operations and financial results are included elsewhere herein and in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking statements contained in this release are made as at the date of this release.

Boe Conversion - Certain natural gas volumes have been converted to barrels of oil equivalent ("boe") whereby six thousand cubic feet (mcf) of natural gas is equal to one barrel (bbl) of oil. This conversion ratio is based on an energy equivalency conversion applicable at the burner tip and does not represent a value equivalency at the wellhead.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Rob Solinger
VP Finance & CFO
(403) 355-3620
rsolinger@ihorse.ca
www.ihorse.ca