Mar. 16, 2010 (Filing Services Canada) -- Ironhorse Oil & Gas Inc. (IOG - TSX Venture), (the "Company") announces that it has successfully drilled, completed and production tested its second oil well at Dawson, Alberta. The oil well was swab tested at a rate of 400 (220 net) bopd. The Company is installing a pump jack and expects the oil well to be on production later this month subject to spring access issues.
Ironhorse now has two (1.1 net) producing oil wells in the Dawson, Alberta area capable of combined production of 700 (385 net) bopd. The first Dawson oil well has been on production since March 1, 2010 at rates exceeding 350 (195 net) bopd. The second oil well is expected to produce at similar rates. After spring break up the Company together with its partner Silverback Energy Ltd. plans to construct a 3 kilometer flow line from the two oil wells to a central oil battery to reduce operating costs and maximize production.
The Company will be submitting an application to the ERCB later this month requesting the two oil wells be granted good production practice ("GPP"). GPP approval will allow Ironhorse to produce the two Dawson oil wells at optimal rates using good engineering practice.
Ironhorse expects to exit the first quarter of 2010 capable of producing in excess of 1,100 boepd with a 70:30 gas to oil ratio. The new oil wells are expected to incur some production disruptions in April due to spring access issues.
Ironhorse has fracture stimulated multiple zones at its Jedney property and plans to construct a pipeline to tie the gas well in later this year.
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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