Mar. 29, 2010 (Filing Services Canada) -- Ironhorse Oil & Gas Inc. (IOG - TSX Venture), ("Ironhorse" or the "Company") has released its financial and operating results for the year ended December 31, 2009.
Highlights and accomplishments achieved during the year include:
* Drilled two (0.4 net) oil wells at Pembina, Alberta and 32 (16 net) gas wells at Shackleton, Saskatchewan.
* The Pembina, Alberta oil discovery added 1.1 MMbbl of oil and Ngls to the Company's reserves.
* 2009/2010 winter drilling program included drilling oil wells at Dawson, Alberta and Shaunavon, Saskatchewan and a gas well at Jedney, British Columbia.
* Funds from operations for the year of $3.9 million ($0.18 per diluted share) compared to $8.0 million ($0.39 per diluted share) in 2008.
* Capital expenditures of $2.6 million during the fourth quarter brought total capital expenditures for the year to date to $10.0 as compared to $10.6 in 2008.
* Net debt at December 31, 2009 was $9.9 million versus credit facilities of $20 million.
Ironhorse will continue to focus on increasing its oil reserves and production in 2010. This winter the Company has drilled:
* Two (1.1 net) oil wells at Dawson, Alberta which were placed on production, in March 2010, at a combined rate of 700 (385 net) bbl per day.
* One (0.8 net) horizontal oil well at Shaunavon, Saskatchewan which will be placed on production after "spring break up" when road bans are lifted in the area.
* One (0.8 net) gas well at Jedney, British Columbia, which is expected to be on production in the third quarter of 2010.
The Company expects to exit the first quarter of 2010 producing over 1,100 boe per day with a 70:30 gas to oil production mix. Further production increases are expected through out 2010 when the Pembina, Alberta oil wells and Jedney, British Columbia gas well are placed on production. These activities will increase total net production to over 1,500 boe per day with a 50:50 gas to oil production mix.
On March 22, 2010 Ironhorse entered into a private placement on a flow through basis to issue 3.7 million shares at a price of $1.40 per share for gross proceeds of $5.2 million. These proceeds together with our $20 million credit facilities and funds from operations will finance a capital expenditure program of $20 - $25 million in 2010.
An overview of the 2009 financial and operating highlights for the quarter and years ended December 31 is set forth below:
Three months ended December 31 Year ended December 31
SELECTED INFORMATION 2009 2008 2009 2008
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Thousands except per share amounts
Financial
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Revenue 2,183 3,427 9,392 17,965
Royalties 567 1,098 2,387 6,883
Funds from operations 653 1,525 3,874 8,001
Per share * diluted 0.03 0.07 0.18 0.39
Net income (loss) (313) 128 (1,495) 1,586
Per share * diluted (0.01) 0.00 (0.06) 0.08
Capital expenditures 2,609 2,842 10,004 10,556
Operations
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Production
Gas * mcf/d 5,560 5,486 6,363 6,434
Oil * bbl/d 10 7 11 7
Total * boe/d 937 921 1,071 1,079
Revenue - $/boe 25.34 40.40 24.02 45.45
Royalty - $/boe 6.58 12.95 6.10 17.42
Operating expenses - $/boe 4.61 3.08 3.27 2.29
Field Netback - $/boe 14.15 24.37 14.65 25.74
General & administrative
expenses - $/boe 3.95 4.78 3.60 3.44
Additional Information
Ironhorse's complete results for the three months and year ended December 31, 2009, including audited financial statements and the management discussion and analysis, are available on SEDAR or the Company's web site at www.ihorse.ca.
For further information, please contact:
Rob Solinger
VP Finance & CFO
(403) 355-3620
rsolinger@ihorse.ca
or visit our website at www.ihorse.ca.
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".
"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."
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 required 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 equipment 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 manor; 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.
Source: Ironhorse Oil & Gas Inc. (TSX-V: IOG) http://www.ihorse.ca
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