IFR Mexico nears completion of TEC 10


IFR achieved several strategic objectives in 2017. With an increased focus on Mexico’s Energy Reform, IFR successfully executed on its strategy to be a first-mover. Through its joint venture company Tonalli Energia (“Tonalli”), which was formed in partnership with Mexican petrochemical leader Grupo IDESA, IFR built a solid foundation from which to emerge as an energy leader in Mexico.

IFR’s achievements in 2017 include:

  • In March, IFR closed a private placement that raised aggregate gross proceeds of$5,059,085. The brokered portion of the private placement was led by PI Financial Corp.
  • In June, Tonalli received approval of its evaluation plan for the onshore Tecolutla block. The evaluation plan outlined in detail the scheduled work program to develop the asset.

Subsequent to year-end 2017 IFR announced:

  • In January, Tonalli secured the drilling authorization permit from Mexico’s National Hydrocarbons Commission for its TEC-10 directional development well at Tecolutla. TEC-10 is the first Tecolutla well to target new locations within the reservoir with the advantage of 3D seismic that has been reprocessed by Tonalli.
  • In April, IFR announced that Tonalli had spudded its first directional evaluation well, TEC-10. The TEC-10 well is now being drilled to target the El Abra formation at a depth of 2,490 meters (8,169 feet). The expected timeline from spud date to reach total depth is under three weeks.

Financial Highlights – Fourth Quarter 2017 and Year ended December 31, 2017

  • The Company reported a consolidated net loss of$2,514,925 ($0.02 loss per share) for the three months ended December 31, 2017 compared to a net loss of$1,690,950 ($0.02 per share) for the same period in 2016.
  • In Q4 2017, the Company had negative cash flow from continuing operations of ($165,350) which excluded a$1,489,415 non-cash impairment charge.
  • The impairment charge at December 31, 2017 of$1,489,415 includes an impairment of$844,550 with respect to lease rentals paid to date on properties in the Northwest Territories as the Company plans to relinquish its remaining freehold leases and an impairment of$644,865 with respect to the remaining net book value of its properties in Montana.
  • The loss from operations in the period included$412,245 in general and administrative costs and$63,000 incurred during the period in respect to the Company’s Mexico project.
  • General and administrative costs for the quarter were higher than previous quarters mainly because of the costs related to increased activities and development focused on Mexico and certain non-recurring corporate costs that were incurred in the period.
  • The Company recorded a consolidated net loss for the year ended December 31, 2017 of$3,382,755 ($0.03 per share) compared to a net loss of$3,252,130 ($0.03 per share) at December 31, 2016.
  • In 2017, the Company had a net loss from operations of$1,808,905 including the impairment charge of$1,489,415 and a loss attributed to the Company’s investment in its Mexican joint venture, Tonalli, of$669,300.
  • During the year, the Company spent$1,597,450 for its 50% share to fund the Company’s joint venture in Mexico.
  • Working capital at December 31, 2017 was$5,683,860, including$5,640,735 of cash and cash equivalents.
Close Menu