SHIFTING OUR FOCUS TO OIL
May 2010
Achievements & Milestones
• Oil discoveries at Pembina, Dawson and Leon Lake
• Brought 300 bbl/d of light oil on production in March 2010
• 750+ boe/d light oil behind pipe at Pembina
• 2010 exit rate in excess of 1,500 boe/d
• 2010 Capex projected at $20 million
Management and Senior Technical Team
Name
Title
Relevant Experience
Larry Parks
President & CEO
33 years
Rob Solinger
VP Finance & CFO
25 years
Al Williams
VP Exploration
30 years
Cam Weston
VP Land
35 years
Jim Wilson
VP & Corporate Secretary
30 years
Jack Green
Manager Production
35 years
Glenn Parrott
Senior Geologist
25 years
Ian Baker
Senior Geophysicist
35 years
Corporate Overview
Listing - TSX Venture
Shares outstanding
Management ownership
IOG
28 million
20%
Net debt – April, 2010
$12 million
Credit Facility
$20 million
Net Debt as a % of available debt
Enterprise Value - $ per flowing boe/d
NAV per share*
* Dec 31,2009 reserves value discounted at 10% before tax
60%
<$36,000
$2.40
Significant Oil Discoveries
• Pembina
▫ Drilled 2 (0.4 net) Nisku oil wells capable of producing
4,000 (800 net) boe/d
▫ Expected to be on production December 2010
• Dawson
▫ Drilled 2 (1.1 net) Slave Point oil wells capable of 700
(385 net) bbl/d, on production March 2010
▫ GPP application approved May 2010
• Leon Lake
▫ Drilled 1 (0.8 net) Hz Shaunavon oil well; on production
March 2010; capable of 80 (65 net) bbl/d
▫ Shot and interpreted 3D seismic which has defined follow
up locations
Production (boe/d)
Core Properties
• Dawson – Slave Point oil
• Leon Lake – Shaunavon oil
• Jedney– Halfway, Doig and
Montney gas
• Lochend – Cardium oil
• Shackleton – Milk River gas
• West Pembina – Nisku oil
Dawson, Alberta
Slave Point oil
• Capable of 700
(385 net) bbl/d
• Light oil with high
net backs
• Good production
practice (“GPP”)
application
approved May
2010
Leon Lake, Saskatchewan
Shaunavon Hz oil
• Drilled first horizontal oil
well in Jan 2010
• 75% working interest in
four sections
• Targeting
• Initial production rates
from horizontal wells of
>75 bbl/d
• Oil reserves of >100,000
bbls per well
• 3D seismic has identified
follow up locations
Jedney, N.E. British Columbia
Multi zone gas
• Drilled discovery gas well in
Jan 2010
• 80% working interest
• Halfway, Doig and Montney on
production Fall 2010
• Upside potential for Montney
resource play could add
significant additional reserves
Lochend, Alberta
Cardium light oil
• 10% working interest
• 18 potential Hz
Cardium oil wells
• Targeting
▫ Initial production of
150 bbl/d per well
▫ Recoverable reserves
of 150,000 bbls
Shackleton, Saskatchewan
25 Sections in the heart of the Milk River gas play
• 50% working
interest in 25
sections with all
associated
infrastructure
• Producing 9 (4.5
net) Mmcf/d
• Net recoverable gas
reserves of 18 Bcf
• Low operating and
finding and
development costs
Shackleton, Saskatchewan
Evaluating 100 potential infill locations
• Currently one gas well per
quarter section
• Offsetting lands down
spaced to two or more
wells per quarter section
• Can drill up to 100 infill
gas wells to maximize
reserves recovery and
utilization of existing
facilities
• Negotiating lower royalties
and fall access in order to
reduce drilling costs
Pembina, Alberta
Prolific Nisku oil wells
• Drilled two (0.4 net) oil
wells to be placed on
production in 2010
• These existing oil wells are
capable of producing at a
combined rate of up to
4,000 (800 net) boe/d
• Net recoverable reserves of
1.3 MMboe
• Additional seismic
anomalies to be drilled
after pipeline is installed
$20 million Capex 2010
• Drill follow up oil wells at
Leon Lake
“Creating
repeatable oil
opportunities”
• Place Pembina oil wells on
production
• Construct Dawson flow line
• Place Jedney gas well on
production
• Fulfill flow-through
obligations of $5.2 million
with respect to April 2010
financing
Reserves and Asset Value Growth
Per Independent Reserves Consultants
Gross Reserves
MMboe
NPV before tax @ 10%
$ million
67.7
Probable
1.1
48.7
2.0
Proven
32.1
0.6
0.3
1.9
2.2
2.9
11.9
0.9
2006
2007
2008
2009
2006
2007
2008
2009
Funds from Operations
$ Millions
$ per share
2010 estimate assumes, Pembina oil wells placed on production by Dec 1st and
commodity prices of Cdn $80/bbl, AECO $4.15/mcf
Why own Ironhorse
• 750+ boe/d behind pipe
• Oil resources ready for exploitation
• Trading at a 50% discount to NAV
• 4 Mmboe 2P of reserves in place
• 10 year Reserves Life Index
• Strong balance sheet
• Significant oil exploration and development locations
Contact Information
Office
Suite 1000, 324 8th Ave SW
Calgary, AB T2P 2Z2
Contact
Rob Solinger, VP Finance & CFO
(403) 355-3620
ir@ihorse.ca
www.ihorse.ca
Banker
ATB Financial
Reserves
GLJ Petroleum Consultants
Sproule Associates Ltd
Legal
Olser, Hoskin & Harcourt LLP
Auditor
Kenway Mack Slusarchuk Stewart LLP
Forward-Looking Statement
Certain information regarding Ironhorse Oil & Gas Inc. (“Ironhorse”) included in this presentation
including management’s assessment of production rates, timing of capital expenditures and on-stream
dates, and anticipated revenues and costs relating to the operations of Ironhorse constitutes forwardlooking information. This information is subject to risks, uncertainties and assumptions that may be
difficult to predict. Actual results may differ and the difference may be material.
Readers are cautioned that any such forward-looking information are not guarantees of future
performance and that the factors mentioned and other factors not mentioned may materially affect the
performance of Ironhorse’s future operations. Furthermore, information presented herein is dated at
the time prepared and Ironhorse does not undertake any obligation to updated publicly or to revise
any of the forward-looking information, whether as a result of new information, future events or
otherwise, except as required by applicable legislation.
Barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. In accordance with
NI 51-101, a Boe conversion ratio for natural gas of 6 Mcf: 1 Boe has been used which is based on an
energy equivalency conversion method primarily applicable at the burner tip and does not represent a
value equivalence at the wellhead.