IFR Reports 2020 Second Quarter Financial Results and Operations Update

CALGARY, Alberta, Aug. 27, 2020 (GLOBE NEWSWIRE) -- International Frontier Resources Corporation (“IFR” or the “Company”) (TSX‐V: IFR) (OTCQB: IFRTF) reported today its financial and operating results for the three and six months ended June 30, 2020. Selected financial and operational information is set out below and should be read in conjunction with IFR’s June 30, 2020 interim financial statements and the related management’s discussion and analysis (“MD&A”).  The financial statements and MD&A are available for review at www.sedar.com and on the Corporation’s website at www.internationalfrontier.com. All dollar figures are in Canadian dollars.

The Company reported a consolidated net loss of $1,275,525 ($0.00 loss per share) for the six months ended June 30, 2020, compared to a net loss of $1,164,060 ($0.01 loss per share) for the six months ended June 30, 2019. Net loss for the three months ended June 30, 2020 was $1,051,910 ($0.00 loss per share) compared to a net loss of $575,100  ($0.00 loss per share) for the quarter ended June 30, 2019.  In the six months ended June 30, 2020 the Company had a negative cashflow from operations of $464,130 and received gross proceeds of $690,405 from a rights offering in January 2020.

The Company also announced that Gary Lyons has resigned from the Company's board of directors, effective August 26, 2020

"On behalf of our board of directors, we thank Gary for his valuable service and contributions and wish him well in future endeavors," stated Steve Hanson, President and CEO of IFR.

Operations Update

At Tecolutla, production was shut-in temporarily at the end of March 2020 in response to declining oil prices resulting from the COVID-19 pandemic. 

As oil prices recovered, production was brought back on stream in July 2020. 

As a result of continued cost reduction initiatives undertaken during the shut-in period Tonalli has lowered it operating cost structure and is able to achieve a positive operating cashflow at lower oil prices than prior to the shut-in.

We estimate that at targeted production levels of 75 bbls/day, operating costs of approximately USD $10.67/bbl and a WTI price of USD $42.00/bbl, Tonalli is able to achieve an operating netback of approximately USD $9.22/bbl. The majority of current operating costs are fixed so if Tonalli is able to bring on additional production volumes then the per barrel operating costs are expected to be lower.