Ironhorse Oil & Gas Inc. Announces 2010 Second Quarter Results
· Issued by Pond Technologies Holdings Inc.
Aug. 25, 2010 (Filing Services Canada) -- Ironhorse Oil & Gas Inc. (IOG - TSX Venture), ("Ironhorse" or the "Company") has released its financial and operating results for the second quarter ended June 30, 2010.
Highlights and accomplishments achieved during the second quarter of 2010 include:
* Funds from operations for the second quarter of 2010 increased 31% to $1.2 million ($0.04 per share) from $0.9 million ($0.04 per share) in the second quarter of 2009.
* Field netback per boe for the second quarter increased 75% to $21.91 per boe from $12.49 per boe.
* Increases in funds from operations and netbacks per boe are largely attributable to the Ironhorse's higher oil production which increased to 179 bbl per day in the second quarter of 2010 from 19 bbl per day for the same period in 2009.
* Higher oil production is the result of the successful first quarter drilling program which yielded significant oil discoveries at Dawson, Alberta and Leon Lake, Saskatchewan.
* During the second quarter Ironhorse received good production practice ("GPP") approval for its Dawson oil wells. GPP approval allows the Company to produce the oil wells at optimal rates using good engineering practices.
* Construction of the Dawson flow line from the oil wells to a central oil battery and processing facility was initiated in the second quarter and completed in July. Construction of the pipeline and associated well site facilities allowed Ironhorse to resume production from the Dawson oil wells in late July at 430 (235 net) bbl per day.
* On April 15, 2010, the Company completed a private placement with respect to the issuance of 3.7 million common shares on a flow-through basis at a price of $1.40 per share for gross proceeds of $5.2 million.
* The company increased its land holdings at Leon Lake with the acquisition of 5,120 acres of land bringing its total land holdings in the area to 7,770 (7,123 net) acres. Ironhorse plans to drill two (1.8 net) vertical evaluation wells on these lands in the third quarter of 2010.
* Ironhorse received a favorable decision from the ERCB with respect to its previously drilled Nisku oil wells in the Pembina, Alberta area.
An overview of the financial and operating highlights for the three and six months ended June 30, 2010 and June 30, 2010 is set forth below:
Three months Six months ended June 30 ended June 30 SELECTED INFORMATION 2010 2009 2010 2009 Thousands except per share amounts Financial ------------------------------------------------------------------------- Revenue 2,682 2,299 5,520 5,351 Royalties 496 591 1,145 1,413 Funds from operations 1,153 881 2,498 2,423 Per share - diluted 0.04 0.04 0.10 0.11 Loss (231) (653) (459) (672) per share (0.01) (0.03) (0.03) (0.03) Capital expenditures 4,691 1,017 12,161 7,011 Gas * mcf/d 4,633 7,153 4,838 6,827
Operations ------------------------------------------------------------------------- Production Gas - mcf/d 4,633 7,153 4,838 6,827 Oil - bbl/d 179 19 142 12 Total - boe/d 951 1,211 949 1,150
Ironhorse's priorities for the balance of 2010 include drilling additional oil wells at Leon Lake, Saskatchewan, working towards placing the Nisku oil wells on production at Pembina, Alberta, identifying and evaluating prospective acquisition and merger candidates and fulfilling its remaining expenditure commitments with respect to the 2010 flow-through share offering. These activities will be funded by existing credit facilities and funds from operations.
The Company also announces that Mr. Jim Wilson and Mr. Bill Manley have tendered their resignations effective August 25, 2010 in order to pursue other interests. The Board of Directors and employees of Ironhorse extend their thanks to Messrs. Wilson and Manley for their efforts in developing the Company over the past seven years.
Additional Information
Ironhorse's complete results for the three and six months ended June 30, 2010, including unaudited financial statements and corresponding management discussion and analysis, are available on SEDAR or the Company's web site at www.ihorse.ca. The Company has posted its current power point presentation on its web site.
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 Maximum News Dissemination by Filing Services Canada Inc. * www.usetdas.com
