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."
Forward-looking statements:
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.