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Financial and Operations Update December 11, 2008
Jan 20, 2009 05:14AM
Financial and Operations Update
December 11, 2008
CALGARY, ALBERTA--(Marketwire - Dec. 11, 2008) - Ivory Energy Inc. (TSX VENTURE: IV.V) ("Ivory") announces that due to the fall in price received for its production, as at September 30, 2008,
Ivory has been in default of certain loan covenants to its senior lenders and anticipates that this will continue through December 31, 2008.
As a result, Ivory is prevented from paying the interest due to debentureholders on that date. Management is contemplating a debentureholder meeting to propose a restructuring of the debentures.
Ivory is currently producing approximately 1,280 boepd, consisting of 810 boepd from its Saskatchewan properties and 470 boepd from its Alberta properties. The Alberta production now includes both the development and discovery gas wells at Obed.
For the month of November 2008, Ivory had sales by volume of 660 boepd from Saskatchewan and 188 boepd from Obed, Alberta for total sales by volume of 848 boepd.
Ivory has and continues to seek ways to reduce both field operating and general administration costs.
Effective December 5, 2008, Mr. G. Arnold Armstrong resigned as director. Mr. Armstrong has contributed greatly to Ivory's development and will be missed.
Boes may be misleading, particularly if used in isolation. A Boe conversion ratio of 6 mcf: 1 bbl. Is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The TSX Venture Exchange has not reviewed and nor does it take responsibility for the adequacy or accuracy of this release.
Ian E. Gallie Ivory Energy Inc. President & Chief Executive Officer (403) 374-5000 Email: [email protected]