Ironhorse Oil & Gas Inc. ("Ironhorse" or the "Company") (TSX-V: IOG) announces its financial and operating results for the three months ended March 31, 2017.
Financial and Operation Summary
The Company's reported production has decreased 19% to 164 boe/d in the first quarter of 2017 from 202 boe/d produced in the fourth quarter of 2016. The decrease in production is primarily attributed to the Nisku L2L Pool shut in of production for 10 days in March due to a third party compressor turnaround which halted the blend gas supply required to produce from the pool.
The Company realized a net loss of $33,000 for the first quarter, a 95% or $667,000 reduction from the $700,000 net loss in Q4 2016 which included a $797,000 impairment charge.
Despite lower production, Q1 2017 operating netbacks improved 21% to $271,000 compared to $224,000 for Q4 2016 benefiting from 8% higher realized commodity prices on a boe basis and reduced operating costs which included equalization credits for 2015 fee adjustments on third party compression recorded in the current quarter.
Quarterly funds from operations remained positive for the third consecutive quarter improving 27% to $180,000 compared to $142,000 for Q4 2016 as a result of higher operating netbacks. The Company continues to be well positioned financially with a positive working capital position of $3.0 million at March 31, 2017.
Combined production from the Pembina Nisku light oil property averaged 1,180 boe/d gross (184 boe/d net) during April 2017. Net production is projected to average in the range of 140 boe/d to 170 boe/d, as the pool operator manages the reservoir performance and optimizes the pool production and water injection requirements.
Ironhorse's complete results for the three months ended March 31, 2017, 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.
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."
SOURCE: Ironhorse Oil & Gas Inc
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