CALGARY, Nov. 18, 2016 /CNW/ – Ironhorse Oil & Gas Inc. (“Ironhorse” or the “Company”) (TSX-V: IOG) announces its financial and operating results for the three and nine months ended September 30, 2016.
Financial and Operation Summary
The Company’s reported production has increased 1620% to 172 boe/d in the third quarter of 2016 from 10 boe/d produced in the second quarter of 2016. The increase in production is attributed to the Pembina L2L Pool production being brought back on stream by the operator on July 19, 2016 and producing 65 days during the quarter.
The Company realized a net loss of $123,000 for the third quarter, a $54,000 increase from Q2 2016 that totalled $69,000. The increased loss is primarily a result of higher depletion costs which were partially reduced by higher operating netbacks reported during the quarter as compared to Q2 2016.
Quarterly funds from operations returned to being positive for the first time since Q3 2015, increasing 156% to $53,000 from negative $94,000 reported in Q2 2016 and were triggered by the resumption of Pembina production during the quarter. Realized oil prices averaged $50/bbl during the current quarter, representing a significant increase compared to December 2015 and January 2016 that averaged $42/bbl and $37/bbl respectively during the last two reported production months prior to the Pembina area shut-in.
Combined production from the Pool averaged 1446 boe/d gross (226 boe/d net) during October 2016. Q4 2016 net production is projected to average in the range of 175 boe/d to 195 boe/d, as the Pool operator manages the reservoir performance and optimizes the Pool production and water injection requirements. No third party facility downtime or pipeline restrictions are currently anticipated for Q4.
The Company continues to be well positioned financially with a positive working capital position of $2.7 million at September 30, 2016.
SELECTED INFORMATION |
For three months ended |
||||
September 30, |
June 30, |
September 30, |
|||
($ thousands except per share & unit amounts) |
2016 |
2016 |
2015 |
||
Financial |
|||||
Petroleum and natural gas revenues (1) |
669 |
16 |
941 |
||
Funds from operations (2) |
53 |
(94) |
39 |
||
Per share – basic and diluted |
– |
– |
– |
||
Net loss |
(123) |
(69) |
(2,850) |
||
Per share – basic and diluted |
– |
– |
(0.10) |
||
Capital expenditures (3) |
– |
– |
21 |
||
Operation |
|||||
Production |
|||||
Light Oil & NGL (bbl/d) |
145 |
1 |
189 |
||
Gas (mcf/d) |
162 |
56 |
162 |
||
Total (boe/d) |
172 |
10 |
216 |
||
Petroleum and natural gas revenues ($/boe) |
42.38 |
16.91 |
47.37 |
||
Royalties ($/boe) |
(17.16) |
(57.30) |
(20.34) |
||
Operating expenses ($/boe) |
(16.56) |
71.51 |
(20.99) |
||
Operating netback ($/boe) |
8.66 |
2.70 |
6.04 |
(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 nine months ended September 30, 2016, including unaudited condensed financial statements and the management’s discussion and analysis are available on SEDAR and 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.”