Alberta is facing another blow to the the gas and oil industry following the decision made the operator of the Nisku L2L Pool (the “Pool”) to shut-in production from the Pool because “continued production is uneconomic under the current commodity price environment.”
Ironhorse Oil & Gas Inc. has a 15.6250% working interest in the Pool and the production from the Pool is its main source of cash flow.
However, the company anticipates that the Pool will remain shut-in until there is a recovery in commodity prices and believes that 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.