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Ironhorse Oil & Gas Q3 net loss $2.8 million

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Staff writer ▼ | November 30, 2015
Ironhorse Oil & Gas
Ironhorse Oil & Gas   The decrease in production

Ironhorse Oil & Gas announced its results for the three and nine months ended September 30, 2015. Reported production has decreased 15% to 216 boe/d in the third quarter of 2015 from 254 boe/d produced in the second quarter.

The decrease in production is attributed to ongoing TransCanada (TCPL) pipeline restrictions and a planned third party gas plant turnaround that shut-in the two producing Pembina wells for a total of 20 days in September.

Quarterly funds from operations decreased 90% to $0.04 million from $0.4 million in Q2 2015 as a result of lower production and continued declining realized oil sales prices that decreased 16% to $51.80/bbl compared to the prior quarter.

Operating netbacks for Q3 2015 decreased 73% from Q2 2015 impacted by lower revenues, higher royalties and increased operating costs mainly due to blend gas associated costs for the Pembina area.

The company realized a net loss of $2.8 million for the third quarter primarily resulting from a $3.5 million impairment charge at Pembina due to continued low commodity prices as compared to the 2014 year end reserve report forecast, offset by $1 million non-cash deferred tax recovery.

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