Ironhorse Oil & Gas公布2016年第一季度的业绩

Financial and Operation Summary

The Company’s reported production has decreased 71% to 67 boe/d in the first quarter of 2016 from 231 boe/d produced in the fourth quarter of 2015. The decrease in production is attributed to the Nisku L2L Pool shut in of production on January 19, 2016. As a result, Pembina only produced for 18-days during the quarter.

The Company realized a net loss of $144,000 for the first quarter, reflective of higher general and administrative costs incurred resulting from the expired unsolicited take-over bid by 1927297 Alberta Ltd. and lower revenues triggered by reduced production and persistent declining commodity prices.

Despite significantly lower operating netbacks and production for Q1 2016, negative funds from operations improved 9% to $131,000 compared to negative funds of $144,000 for Q4 2015 which included $270,000 in take-over bid costs recorded. The Company has incurred $325,000 in take-over bid associated general and administrative costs since November 2015.

Currently the Company does not have significant capital commitments authorized for 2016 and continues to be well positioned financially to withstand the temporary shut-in of the Pembina wells. The Company continues to look for an opportunity of consistent higher prices in order to possibly hedge and sustain a restart of production at Pembina.

On February 23, 2016, the Company and GRL jointly filed a Statement of Claim in the Court of Queen’s Bench of Alberta against Sinopec Daylight Energy Ltd. (‘Sinopec’), the operator of pipelines and facilities associated with the Pool production. The Company and GRL are seeking damages against Sinopec for misrepresentation and breach of contract. On April 15, 2016 Sinopec Daylight Energy Ltd. filed a Statement of Defense in response to the Statement of Claim, as well as a Counterclaim. On May 24, 2016, the Company and GRL filed a Statement of Defense to the Sinopec Counterclaim.