CALGARY, March 7, 2014 /CNW/ – Ironhorse Oil & Gas Inc. (“Ironhorse” or the “Company”) (TSX-V: IOG) is pleased to announce the results of its Pembina Nisku L2L pool development and initiation production startup.
Ironhorse with partners Sinopec and Grizzly Resources Ltd. have initiated the first production in the Nisku L2L pool from the 100/09-05-050-06W5M/00 well which commenced March 5, 2014. Initial gross production rates of 300 -1000 bopd are anticipated as production is ramped up over the next 30 days. Gross production is anticipated to remain restricted at approximately 1000 bopd rate while Sinopec, the facility operator, continues to expand its current gas handling facility and battery, estimated to be completed by mid 2014. After completion of the facility and battery expansion, Sinopec’s estimated handling capacity will be approximately 3000 bopd. Past short-term well tests have supported combined well rates of approximately 3000 bopd from the L2L pool. Ironhorse holds a 15.625% working interest in the pool which includes two Nisku oil producing wells and one water injection well.
Wellsite facilities and flowline construction to handle L2L production were completed in late February 2014. The flowline installations include group, test emulsion lines along with water injection and fuel gas return lines to the L2L pool wells.
Applications for an Enhanced Recovery (ER Scheme) and Good Production Practice (GPP) have been submitted to the Alberta Energy Regulator (AER) with approvals anticipated in 3-4 months. The Pembina Nisku L2L pool includes a well for water injection under the ER Scheme’s pressure maintenance requirement.
Ironhorse also participated in the drilling of the 01-08-50-6W5 well on the north updip extent of the pool. The well encountered the edge of the Nisku reef pool. Given the thin nature of the encountered reservoir the zone was abandoned with the wellbore being left intact for future operations.
An updated reservoir report for the L2L pool is currently being prepared and will be released with Ironhorse’s year end reporting.
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.”
Certain statements in this news release constitute forward-looking statements. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Ironhorse. Although Ironhorse believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Ironhorse can give no assurance that they will prove to be correct.
The forward-looking statements contained in this document are made hereof and Ironhorse undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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.
For further information:
Larry J. Parks
President & Chief Executive Officer