Ironhorse Announces 2013 Fourth Quarter and Year End Results

CALGARY, April 22, 2014 /CNW/ - Ironhorse Oil & Gas Inc. ("Ironhorse" or the "Company") (TSXV: IOG) announces 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 December 31, 2013 was prepared by GLJ Petroleum Consultants Ltd. and Sproule Associates Limited in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and NI 51-101 "Standards of Disclosure for Oil & 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 December 31, 2013 from negative $368,000 for the year ended December 2012.
• Reduced G&A expenses by $286,000 from $714,000 for the year ended December 31, 2012 to $428,000 for the year ended December 31, 2013.
• The Company's proved plus probable reserve volumes were 88% oil and natural gas liquids weighted with 79% of reserve volumes being proved.
• Annual production decreased by 7% to 99 boe per day from 107 boe 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 their 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 MRL (maximum rate limitation) allowable and Enhanced Recovery water injection scheme which includes Good Production Practice.   Once stabilized 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 (NEB) 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.

Additional Information

Ironhorse's complete results for the year ended December 31, 2013, including audited financial statements and the 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 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.