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Iron Bridge Resources (TSX:IBR), has released its Q2 financials as well as an update for the Gold Creek operations. Based in Calgary, Alberta, Iron Bridge is an oil and gas explorer and producer, currently focused on developing its Gold Creek project. As quoted from the press release: Gold Creek Montney Operations Update At Gold Creek, Iron …
Iron Bridge Resources (TSX:IBR), has released its Q2 financials as well as an update for the Gold Creek operations. Based in Calgary, Alberta, Iron Bridge is an oil and gas explorer and producer, currently focused on developing its Gold Creek project.
As quoted from the press release:
Gold Creek Montney Operations Update
At Gold Creek, Iron Bridge holds a large, strategically-positioned land base of 49,600 net acres (77.5 net sections) within the oil-rich window of the Gold Creek Montney formation, with substantial multi-year development opportunities holding significant resource potential. Asset development of the Montney formation in the Gold Creek area is focused on horizontal drilling with increased frac stages and proppant intensity. These technical enhancements, coupled with operational efficiencies in spud-to-on-stream cycle times, emulsion management and infrastructure optimization, will provide the key to unlocking the vast potential of the Company’s Gold Creek Montney asset.
As previously-disclosed, at the end of April 2018 the Company brought on-production its two (2.0 net) new Gold Creek Montney horizontal wells (100/8-21 and 102/8-21). Production from these wells during the second quarter and the month of July was constrained by water injection limitations, which has been recently alleviated with the in-service of an additional third injection well. An existing Montney legacy well was converted to an injection well, which in addition to alleviating water management issues, will also provide pressure support to the producing reservoir. IBR now has capacity to handle Montney formation water production from all of its existing producers.
Second Quarter 2018 Results Commentary
Production
In the second quarter, average daily production was 2,314 boe/d (weighted 30 percent light crude oil and NGLs), representing an 84 perecent sequential increase over the prior quarter output of 1,256 boe/d. Please refer to the foregoing Gold Creek Montney operations update section of this news release for further production discussion.Adjusted Funds Flow and Field Operating Netback
Second quarter adjusted funds flow was C$1.22 million (C$0.01 per share basic), impacted by corporate costs related to IBR’s defense against the ongoing hostile take-over offer. Please refer to G&A Expense section hereafter. The Company’s Gold Creek field operating netback during the second quarter was C$11.58/boe, lower than the operating netback of C$16.69/boe in the preceding first quarter of 2018, due primarily to lower realized gas prices in the second quarter.