CALGARY, April 3, 2014 /CNW/ – Ironhorse Oil & Gas Inc. (“Ironhorse” or the “Company”) (TSX-V: IOG). announces that Sproule Associates Limited, has evaluated Ironhorse’s primary property, the Pembina Nisku L2L Oil Pool as at December 31, 2013 in accordance with National Instrument 51-101. Detailed reserves information will be included in Ironhorse’s Oil and Gas Annual Disclosure which will be filed on Sedar on or before April 28, 2014. The summary information that follows has been derived from that evaluation.
Total proved plus probable reserves from the Pembina property have decreased 274 Mboe or 26% from 1,066 Mboe at December 31, 2012 to 792 Mboe at December 31, 2013. Total proved plus probable reserve value using PV10% have decreased $7.3 million from $33.6 million at December 31, 2012 to $26.3 million at December 31, 2013.
The year over year change in reserves reflects the drilling results of the 100/01-08-050-06W5 and the 102/10-05-050-06W5 wells. The revised reserves also includes a decrease in natural gas liquids recoveries as a result of a change in the pool recovery mechanism associated with reservoir gas cycling to water injection for pressure maintenance.
On March 24, 2014 Ironhorse was informed by Keyera Partnership, gas facility operator for processing gas production from the Pembina Nisku L2L pool, that TransCanada will be implementing an operating pressure reduction on its main sweet sales line leaving the Keyera gas facility. Keyera indicated to producers using their facility that full shut-in of production will occur as a result of TransCanada’s imposed pressure reduction orders. This will result in the Pembina Nisku L2L Pool being shut-in.
The pressure reduction order affecting Keyera’s facility was initially to be completed on or before April 3, 2014. However, on March 28, 2014 TransCanada was advised by the National Energy Board (NEB) that compliance deadlines related to the pressure reduction orders have now been extended to April 24, 2014.
At this time, Ironhorse has no further updates as to the potential timing or length of the disruption to its production related to pipeline shutdowns as a result of the NEB’s regulatory requirements issued toTransCanada. Currently Ironhorse has one Pembina well producing at restricted rates due to short term blending limitations at the 13-2 Sinopec battery.
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.”
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.
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.
For further information: Larry J. Parks, President & Chief Executive Officer, (403) 355-3620, lparks@ihorse.ca