CALGARY, May 26, 2017 /CNW/ - Ironhorse Oil & Gas
Inc. ("Ironhorse" or the "Company") (TSX-V: IOG) announces its
financial and operating results for the three months ended
March 31, 2017.
Financial and Operation Summary
The Company's reported production has decreased 19% to 164 boe/d
in the first quarter of 2017 from 202 boe/d produced in the fourth
quarter of 2016. The decrease in production is primarily
attributed to the Nisku L2L Pool
shut in of production for 10 days in March due to a third party
compressor turnaround which halted the blend gas supply required to
produce from the pool.
The Company realized a net loss of $33,000 for the first quarter, a 95% or
$667,000 reduction from the
$700,000 net loss in Q4 2016 which
included a $797,000 impairment
charge.
Despite lower production, Q1 2017 operating netbacks improved
21% to $271,000 compared to
$224,000 for Q4 2016 benefiting from
8% higher realized commodity prices on a boe basis and reduced
operating costs which included equalization credits for 2015 fee
adjustments on third party compression recorded in the current
quarter.
Quarterly funds from operations remained positive for the third
consecutive quarter improving 27% to $180,000 compared to $142,000 for Q4 2016 as a result of higher
operating netbacks. The Company continues to be well positioned
financially with a positive working capital position of
$3.0 million at March 31, 2017.
Combined production from the Pembina Nisku light oil property
averaged 1,180 boe/d gross (184 boe/d net) during April 2017. Net production is projected to
average in the range of 140 boe/d to 170 boe/d, as the pool
operator manages the reservoir performance and optimizes the pool
production and water injection requirements.
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|
SELECTED
INFORMATION
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For three months
ended
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|
March
31,
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December
31,
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March 31,
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($ thousands except
per share & unit amounts)
|
2017
|
2016
|
2016
|
Financial
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|
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Petroleum and natural
gas revenues (1)
|
758
|
884
|
162
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Funds from operations
(2)
|
180
|
142
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(131)
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Per share – basic and
diluted
|
0.01
|
0.01
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-
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Net loss
|
(33)
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(700)
|
(144)
|
|
Per share – basic and
diluted
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-
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(0.03)
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(0.01)
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Capital expenditures
(3)
|
-
|
-
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(1)
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Operation
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|
|
|
Production
|
|
|
|
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Light Oil & NGL
(bbl/d)
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140
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167
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44
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Gas
(mcf/d)
|
146
|
212
|
137
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Total
(boe/d)
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164
|
202
|
67
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Petroleum and natural
gas revenues ($/boe)
|
51.42
|
47.61
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26.50
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Royalties
($/boe)
|
21.86
|
19.09
|
11.27
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Operating expenses
($/boe)
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11.22
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16.41
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12.75
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Operating netback
($/boe)
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18.34
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12.11
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2.48
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(1)
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Petroleum and
natural gas revenues are before royalty expense.
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(2)
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Funds from
operations and net debt are non-GAAP measures as defined in the
Advisory section of the MD&A.
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(3)
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Capital
expenditures are before acquisitions and
dispositions.
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Additional Information
Ironhorse's complete results for the three months ended
March 31, 2017, including unaudited
condensed financial statements and the management's discussion and
analysis are available on SEDAR and 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 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; pipeline restrictions; 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 and Ironhorse assumes no obligation
to update or revise any forward-looking statements to reflect new
events or circumstances, except as required by applicable
laws.
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."
SOURCE Ironhorse Oil & Gas Inc.