CALGARY, Nov. 19, 2013 /CNW/ - Ironhorse Oil & Gas
Inc. ("Ironhorse" or the "Company") (TSXV: IOG) announces its third
quarter 2013 financial and operating results.
Highlights:
- Funds from operations for Q3 2013 were $24,000 (nil per diluted share) compared to an
outflow of $85,000 ($0.01 per diluted share) for Q3 2012.
- Working capital was $3.8 million
at September 30, 2013 including
assets held for sale compared to net debt of $3.3 million at December
31, 2012.
- Production averaged 120 boe/d during the nine months ended
September 30, 2013 up 48% compared to
the same period in 2012.
- Subsequent to September 30, 2013,
the Company entered into a purchase and sale agreement to sell its
working interest in the Leon Lake area of south west Saskatchewan for $7.2
million. Proceeds will be used to repay bank
indebtedness and fund the Company's working interest share of final
capital requirements to bring the Pembina Nisku oil property on
production. The sale is scheduled to close November 27, 2013.
- Alberta Energy Regulator (AER) rendered a decision on
October 31, 2013 approving the
completion of all Pembina related pipelines, facilities and the
drilling of the Pembina 1-8 well. Once Pembina commences
production, the Board of Directors will consider strategic
alternatives to maximize shareholder value.
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SELECTED
INFORMATION |
For three months ended |
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For nine months ended |
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September 30, |
|
September
30, |
|
($ thousands except
per share & unit amounts) |
2013 |
2012 |
%
change |
2013 |
2012 |
%
change |
Financial |
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|
|
|
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Petroleum and natural
gas revenues (1) |
441 |
451 |
(2%) |
1,461 |
1,404 |
4% |
Funds from operations
(2) |
24 |
(85) |
128% |
69 |
(494) |
114% |
|
Per share - basic and diluted |
- |
- |
- |
- |
(0.01) |
100% |
Net (loss) income |
(1,015) |
(318) |
(220%) |
(1,436) |
(1,159) |
(24%) |
|
Per share - basic and diluted |
(0.03) |
(0.01) |
(200%) |
(0.05) |
(0.04) |
- |
Capital expenditures
(3) |
65 |
186 |
(65%) |
114 |
537 |
(79%) |
Operation |
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Production |
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Oil (bbl/d) |
41 |
51 |
(20%) |
45 |
61 |
(26%) |
|
Gas (mcf/d) |
285 |
355 |
(19%) |
449 |
122 |
268% |
|
Total (boe/d) |
89 |
110 |
(19%) |
120 |
81 |
48% |
Petroleum and natural
gas revenues ($/boe) |
53.34 |
44.32 |
20% |
44.52 |
63.33 |
(30%) |
Royalties ($/boe) |
(14.28) |
(9.38) |
52% |
(12.12) |
(18.77) |
(35%) |
Operating expenses
($/boe) |
(18.33) |
(18.60) |
(1%) |
(15.20) |
(26.21) |
(42%) |
Operating netback
($/boe) |
20.73 |
16.34 |
27% |
17.20 |
18.35 |
(6)% |
(1) |
Petroleum and natural gas revenues are before royalty
expense. |
(2) |
Funds from operations and net debt are non-GAAP measures as
defined in the Advisory section of the MD&A. |
(3) |
Capital expenditures are before acquisitions and
dispositions. |
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Additional Information
Ironhorse's complete results for the three and
nine months ended September 30, 2013,
including unaudited condensed financial statements and the
management's discussion and analysis are available on SEDAR or 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; 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.
"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.