- The Company reached agreement with its partners to tie-in and process production from its two (0.4 net) prolific Nisku oil wells at Pembina, Alberta. In the agreement Ironhorse agreed to reduce its production working interest from 18.75% to 15.63% in exchange for its partner paying for the capital costs associated with facilities and the tie-in of the wells to an existing facility system. The Company and its partners plan to drill two additional wells (1 producer, 1 injector) in third quarter of 2011. The projected on-stream production date has moved up 11 months to January 2012. Production will start at gross rate of 1,350 (200 net) boe per day and be increased over time to an optimal rate of 4,000 (600 net) boe per day when the Company and its partners fully implement an enhanced recovery scheme.
- Acquired a 100% working interest in 4.25 sections of land at Hamilton Lake, Alberta which are prospective for Upper Viking oil. These lands add up to 16 horizontal locations to the Company’s drilling inventory.
- Has an option to acquire to acquire a 50% working interest in an additional 19.75 sections of land at Hamilton Lake, which would bring the Company’s total land holdings to 24 (12 net) sections. This opportunity gives Ironhorse an additional 66 drilling locations for a total of 82 possible locations in the Viking. In order to complete the equalization, Ironhorse must make payment of $1.7 million prior to July 9, 2011. The Company is currently negotiating an extension of the expiry date.
- Funds from operations for the three months ended March 31, 2011 of $0.8 million ($0.3 per diluted share) compared to $1.3 million ($0.0.6 per diluted share) in 2010.
An overview of the financial and operating highlights for March 31, 2011 is set forth below:
Ironhorse’s complete results for the quarter ended March 31, 2011, including unaudited interim financial statements and the management discussion are available on SEDAR or the Company’s web site at www.ihorse.ca.
Read the full news release here