CALGARY, Aug. 23, 2016 /CNW/ – Ironhorse Oil & Gas Inc. (“Ironhorse” or the “Company”) (TSX-V: IOG) announces its financial and operating results for the three and six months ended June 30, 2016.
Financial and Operation Summary
The Company’s reported production has decreased 85% to 10 boe/d in the second quarter of 2016 from 67 boe/d produced in the first quarter of 2016. The decrease in production is attributed to the Pembina L2L Pool shut in of production on January 19, 2016. As a result, Pembina did not produce during the current quarter.
The Company realized a net loss of $69,000 for the second quarter, a $75,000 reduction from Q1 2016 that totalled $144,000. The reduced loss is primarily a result of lower general and administrative and depletion costs recorded during the quarter as compared to Q1 2016.
Despite significantly lower production for Q2 2016, negative funds from operations improved 28% to $94,000 compared to negative funds of $131,000 for Q1 2016 which included $55,000 in take-over bid costs recorded.
As previously disclosed, the Operator of the Pembina L2L Pool (the “Pool”) has restarted production effective July 19, 2016 with both the 09-05 and 14-05 wells brought back on stream safely as of the end of July and as a result, Q3 2016 cash flow from operations should return to positive.
Combined production from the Pool is currently averaging 1670 boe/d gross (261 boe/d net). August and September net production for Q3 2016 is projected to average in the range of 219 boe/d to 235 boe/d, with no third party facility downtime or pipeline restrictions anticipated.
The Company continues to be well positioned financially with a positive working capital position of $2.7 million at June 30, 2016.
SELECTED INFORMATION |
For three months ended |
||||
June 30, |
March 31, |
June 30, |
|||
($ thousands except per share & unit amounts) |
2016 |
2016 |
2015 |
||
Financial |
|||||
Petroleum and natural gas revenues (1) |
16 |
162 |
1,262 |
||
Funds from operations (2) |
(94) |
(131) |
401 |
||
Per share – basic and diluted |
– |
(0.01) |
0.01 |
||
Net income (loss) |
(69) |
(144) |
(634) |
||
Per share – basic and diluted |
– |
(0.01) |
(0.02) |
||
Capital expenditures (3) |
– |
(1) |
3 |
||
Operation |
|||||
Production |
|||||
Light Oil & NGL (bbl/d) |
1 |
44 |
215 |
||
Gas (mcf/d) |
56 |
137 |
233 |
||
Total (boe/d) |
10 |
67 |
254 |
||
Petroleum and natural gas revenues ($/boe) |
16.91 |
26.50 |
54.70 |
||
Royalties ($/boe) |
(57.30) |
11.27 |
16.07 |
||
Operating expenses ($/boe) |
71.51 |
12.75 |
16.44 |
||
Operating netback ($/boe) |
2.70 |
2.48 |
22.19 |
(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. |
Additional Information
Ironhorse’s complete results for the three and six months ended June 30, 2016, 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.”