May 20, 2010 (Filing Services Canada) -- Ironhorse Oil & Gas Inc. (IOG - TSX Venture), has released its financial and operating results for the first quarter ended March 31, 2010.
Highlights and accomplishments achieved during the first quarter of 2010 include:
* Ironhorse made a Slave Point oil discovery at Dawson, Alberta. The
Company participated in drilling two (1.1 net) oil wells which are
capable of combined production of 700 (385 net) bbl/d.
* The Company drilled its first (0.8 net) horizontal oil well at Leon
Lake, Saskatchewan. The well is capable of producing at 75 (56 net)
bbl/d.
* Ironhorse completed a three dimensional seismic program at Leon Lake
which has identified additional drilling locations, some of which are
expected be drilled through out the second half of 2010.
* The Company drilled one (0.8 net) gas well at Jedney, British Columbia
to evaluate both conventional and resource type prospective gas zones.
The well is capable of producing at 1,200 (1,000 net) mcf per day.
* Funds from operations for the first quarter of 2010 increased 106% to
$1.3 million ($0.06 per diluted share) from $0.6 million ($0.03 per
diluted share) in the last quarter of 2009.
* The Company entered into an agreement to issue 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 financing closed April 15, 2010.
An overview of the financial and operating highlights for the three months ended March 31, 2010, December 31, 2009 and March 31, 2009 is set forth below:
-------------------------------------------------------------------------
Three Months Ended
HIGHLIGHTS MARCH 2010 DECEMBER 2009 MARCH 2009
-------------------------------------------------------------------------
Thousands - except per
share amounts
-------------------------------------------------------------------------
FINANCIAL
-------------------------------------------------------------------------
Revenue $2,838 $2,183 $3,053
Royalties 649 567 822
Funds from operations 1,345 653 1,542
Per share - basic and diluted 0.06 0.03 0.07
Loss 228 313 18
Per share - basic and diluted (0.01) (0.01) 0.00
Capital expenditures 7,470 2,609 5,994
Net debt $16,041 $9,909 $11,319
Weighted average shares
outstanding 4,214 22,859 21,779
-------------------------------------------------------------------------
OPERATIONS
-------------------------------------------------------------------------
Production
Gas - mcf/d 5,044 5,560 6,498
Oil & ngls - bbl/d 105 10 7
Total - boe/d 946 937 1,089
Average sales price
Gas - $/mcf 4.64 4.15 5.16
Oil & ngls - $/bbl 77.61 66.91 53.72
Boe - $/boe 33.34 25.35 31.11
Royalties- $/boe 7.63 6.58 8.38
Operating - $/boe 4.10 4.61 2.82
Field Netback - $/boe 21.61 14.15 19.91
General & administrative
expenses - $/boe 3.94 3.95 3.49
-------------------------------------------------------------------------
Ironhorse's priorities for the balance of 2010 include drilling additional wells at Leon Lake, Saskatchewan, placing the Nisku oil wells on production at Pembina, Alberta, identifying and evaluating prospective acquisition and merger candidates and fulfilling its expenditure commitments with respect to the 2010 flow-through share offering. These activities will be funded by existing credit facilities and funds from operations.
Additional Information
Ironhorse's complete results for the three months ended March 31, 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.
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
