Ironhorse Oil & Gas Inc. announces shut-in production due to low oil and gas prices

Ironhorse Oil & Gas Inc. (“Ironhorse” or the “Company”) (TSX-V:IOG), advises that the operator of the Nisku L2L Pool (the “Pool”) has informed Ironhorse that the operator intends to shut-in production from the Pool because continued production is uneconomic under the current commodity price environment.
Ironhorse has a 15.6250% working interest in the Pool and the production from the Pool is Ironhorse’s main source of cash flow. Ironhorse believes that, with continued downward pressure on commodity prices, a temporary shut-in of the Pool production is a prudent decision that will preserve the value of Ironhorse’s oil and natural gas reserves.
The Company anticipates that the Pool will remain shut-in until there is a recovery in commodity prices. The operator has advised Ironhorse that the operator will be executing a comprehensive shutdown program of the wells and facilities to ensure the investment is preserved with an ability to re-start when commodity prices recover. Notwithstanding suspension of its main source of cash flow, Ironhorse is financially well positioned, with existing positive working capital and no debt.
Source: Ironhorse Oil & Gas Inc.
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