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Enter Symbol
or Name
USA
CA



Ironhorse Oil & Gas Inc
Symbol IOG
Shares Issued 27,885,824
Close 2014-04-22 C$ 0.275
Market Cap C$ 7,668,602
Recent Sedar Documents

Ironhorse loses $1.71-million in 2013

2014-04-22 21:34 ET - News Release

Mr. Larry Parks reports

IRONHORSE ANNOUNCES 2013 FOURTH QUARTER AND YEAR-END RESULTS

Ironhorse Oil & Gas Inc. has released its fourth quarter and full-year 2013 financial and operating results and year-end reserves information.

The company's year-end reserves evaluation with the effective date of Dec. 31, 2013, was prepared by GLJ Petroleum Consultants Ltd. and Sproule Associates Ltd. in accordance with definitions, standards and procedures contained in the Canadian oil and gas evaluation handbook and NI 51-101 (standards of disclosure for oil and gas activities). Reserves included herein are stated on a company gross basis (working interest before deduction of royalties without including any royalty interest) unless otherwise noted.

Highlights of 2013:

  • Completed the sale of the Leon Lake property for net proceeds of $7.1-million, net of selling and closing costs, with funds used to repay all bank debt;
  • Improvement of funds from operations to negative $4,000 for the year ended Dec. 31, 2013, from negative $368,000 for the year ended December, 2012;
  • Reduced general and administrative expenses by $286,000 from $714,000 for the year ended Dec. 31, 2012, to $428,000 for the year ended Dec. 31, 2013;
  • The company's proved plus probable reserve volumes of 88 per cent oil and natural gas liquids weighted with 79 per cent of reserve volumes being proved;
  • Annual production down by 7 per cent to 99 barrels of oil equivalent per day from 107 barrels of oil equivalent per day in 2012 primarily due to the disposition of the Leon Lake oil property in November, 2013;
  • Received approval from the Alberta Energy Regulator for the completion of pipeline and facility expansion to bring on the company's share of production from the Pembina Nisku light oil property.

Outlook for 2014

The company is debt-free with cash on hand to complete its share of all remaining capital expenditures for the Pembina Nisku L2L pool. The 14-5-50-6W5M and 9-5-50-6W5M wells are currently tied in and producing at restricted rates while Sinopec is testing its current gas-blending capacities and completing work on the related facilities, with the 10-5-50-6W5M water injector now completed.

In 2014, the company will focus on establishing the maximum allowed production levels from the Pembina Nisku L2L pool, which includes application for a special maximum rate limitation allowable, as well as an enhanced recovery water injection scheme, which includes good production practice. Once stabilized, and production is established at Pembina, the company will pursue options to maximize shareholder value.

On April 15, 2014, TransCanada provided industry with an updated status as to potential shut-in of gas pipelines as a result of a National Energy Board compliance order. TransCanada announced that effective immediately, all gas pipelines, including those which handle gas production from the Pembina L2L pool, would not be curtailed or shut in as the NEB has accepted TransCanada's plan to remedy pipeline issues. As a result of this, Keyera will not be required to shut in production that would have affected production from the Pembina L2L pool.

                                          SELECTED INFORMATION

                                                            Three months ended Dec. 31,         Year ended Dec. 31,
                                                              2013                2012        2013            2012
Financial ($ thousands except per share)
Petroleum and natural gas revenues                            $130                $649      $1,590          $2,053
Funds from operations                                          (75)                136          (4)           (368)
Per share -- basic and diluted                                  --                  --          --           (0.01)
Net income (loss)                                             (277)                270      (1,713)           (889)
Per share -- basic and diluted                               (0.01)               0.01       (0.06)          (0.03)
Operation
Production
Gas (Mcf/d)                                                    159                 741         375             277
Oil  (bbl/d)                                                     9                  60          36              61
Total (boe/d)                                                   36                 184          99             107
Petroleum and natural gas revenues ($/boe)                  $38.84              $38.39      $44.00          $52.54
Royalties ($/boe)                                             6.03                6.55       11.56           13.48
Operating expenses ($/boe)                                    0.64               13.26       13.85           20.60
Operating netback ($/boe)                                    32.17               18.58       18.59           18.46

                                RESERVES SUMMARY -- OIL EQUIVALENT 
                                              (in Mboe)   

     Proved producing Proved developed non-producing Proved undeveloped Total proved Total probable Proved plus probable

2013               12                            625                 --          637            172                  809
2012              119                            617                276        1,012            416                1,428

             NET PRESENT VALUE SUMMARY 
                     ($ thousands)

                       Proved               Proved developed 
                    producing                  non-producing

10%                      $141                        $22,016      
15%                       135                         20,212      

             Proved        Total        Total            Total proved 
        undeveloped       proved     probable           plus probable

10%              --      $22,157       $4,895                 $27,052
15%              --       20,347        4,046                  24,393

                       RESERVES RECONCILIATION -- OIL EQUIVALENT 
                                         (in Mboe)     

                                            Total proved     Total probable Total proved plus probable

Dec. 31, 2012                                      1,012                416                      1,428
Technical revisions                                 (239)               (63)                      (302)
Dispositions                                        (100)              (175)                      (274)
Economic factors                                      --                 (6)                        (7)
Production                                           (36)                --                        (36)
Dec. 31, 2013                                        637                172                        809

          NET ASSET VALUE BEFORE INCOME TAX -- DISCOUNTED AT 10 PER CENT
                   ($ thousands except share and per share data) 

                                                 Dec. 31, 2013           Dec. 31, 2012

Net present value -- proved and probable               $27,052                 $39,507
Net working capital (debt)                               2,815                  (3,277)
Net asset value                                         29,867                  36,230
Common shares outstanding                           27,860,824              27,860,824
NAV per share, Dec. 31                                    1.07                    1.30

               GLJ PRICE FORECASTS AS OF DEC. 31, 2013 

Year               Edmonton Par price 40 degrees       API AECO gas price
                                       ($Cdn/bbl)             ($Cdn/MMBtu)

2014                                      $92.76                    $4.03
2015                                       97.37                     4.26
2016                                      100.00                     4.50
2017                                      100.00                     4.74
2018                                      100.00                     4.97
2019                                      100.00                     5.21
2020                                      100.77                     5.33
2021                                      102.78                     5.44
2022                                      104.83                     5.55
2023                                      106.93                     5.66
Thereafter                     More than 2%/year        More than 2%/year

Additional information

Ironhorse's complete results for the year ended Dec. 31, 2013, including audited financial statements and management's discussion and analysis, annual information form, statement of reserves data, and other oil and gas information, are available on SEDAR or the company's website.

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