CALGARY, ALBERTA–(Marketwired – April 30, 2014) – Quattro Exploration and Production Ltd. (“Quattro” or the “Company“) (TSX VENTURE:QXP) is pleased to announce for its full year ending December 31st, 2013, CDN $0.39 per share earnings.
Highlights for the year ending 2013 are based on our continuing approach to adding anti-dilutive shareholder value. In addition, Quattro continues to develop a strong and improving financial position as the foundation for growth through a continuous combination of acquisitions, remediation, development drilling and exploration.
|–||Revenues (pro forma 2013)||$||14,687,000|
|–||Net earnings (including Gain on Acquisition)||$||12,696,000|
|–||Revenues (net) only the remaining 56 days post-closing included||$||2,932,000|
|–||Cash and equivalents||$||4,447,000|
|–||Net debt (excluding decommissioning liabilities & deferred taxes)||$||5,052,000|
At year end 2013 the Company’s exit production was 1040 boe per day with an additional 200 boe per day going through remediation and work overs. The Company continues to build on the financial foundation as summarized above and reported in its audited year-end financial statements and corresponding MD&A, utilizing stable low decline production and substantial infrastructure as the building blocks for growth in Canada.
Quattro, upon completion of its evaluation in accordance with IFRS, chose to continue to maintain a conservative course of action whereby to date only the IFRS compliant reserves evaluation has been reported on the balance sheet as of the acquisition closed November 5th, 2013. Minimal value was applied to the acquired facilities and infrastructure, resulting in the Company’s total asset value at year end being $48,641,000, with $6,754,000 being current assets, $39,714,000 being PN&G assets and the balance being $2,173,000 in exploration and evaluation assets.
At year-end 2013 Quattro is the owner and operator of the numerous facilities and infrastructure. Its 8 operated facilities have the capacity to process 16 mmcf per day of gas and 60,000 bbls per day of oil and fluids. It also has acquired more than 300 kilometers of pipelines and gathering systems, with an estimated replacement cost of greater than $80,000,000. Since January 1st of 2013, the facilities were monitored by Quattro, but only recently been directly under the supervision of Quattro employees as at November 5th, 2013. During the past 6 months the facilities continue to provide strong results and will be evaluated as deemed necessary to be recognized in terms of their market value in accordance with IFRS.
“The combination of our financial position, our significant infrastructure and our current efforts over the past year continues to provide Quattro ample running room for organic growth.” said Leonard Van Betuw, President and CEO. “Our team, both in the office and field are energized and focused on growth, with the Company continuing towards the production goal of 2,500 boe per day, utilizing a measured and coordinated approach.”
The Company as of year-end 2013, included 10 (net) drilling locations in Canada, of which one is classified as exploratory in its budget. Quattro anticipates that upon the completion of its geophysical and geological studies by year end 2014, within Quattro’s material land base of more than 218,000 (net) acres in Canada, it anticipates adding a further 95 development locations and 4 exploratory locations to its inventory, by the end of the second quarter.
“Quattro looks forward to exploiting the efforts of the past 3 years, for many years to come and anticipates that its expanded foundation will be the basis for further growth and diversification.” added team leaders, Daniel Lucero and Brent McGillivray.
The Company anticipates that during the following weeks it will be updating its plans to include a drilling program with a minimum of 8 (net) development wells and 1 (net) exploratory well to be drilled in the following 6-8 months in addition to its ongoing remediation and consolidation efforts.
It is through these efforts that the Company anticipates it will have expanded its foundation to the material degree planned, prior to the ramp up of its operations in Central and South America, continuing to focus on adding diversified and sustainable value for its shareholders.
About Quattro Exploration and Production Ltd.
Quattro Exploration and Production Ltd. (“QXP”) continues to focus on the conventional exploration and development of oil and natural gas reserves in Western Canada, with an expanding presence in Alberta and British Columbia. It’s core low risk production base will provide the Company the capacity to aggressively pursue a ser ies of high impact exploration and development efforts in Central and South America. Quattro intends to balance this portfolio of activities to assure its shareholders that it achieves material growth in both reserves and production.
This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company’s registered filings which are available at www.sedar.com.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Barrel (“bbl”) of oil equivalent (“boe”) amounts may be misleading particularly if used in isolation. All boe conversions in this report are calculated using a conversion of six thousand cubic feet of natural gas to one equivalent barrel of oil (6 mcf=1 bbl) and is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.
Trading in the securities of Quattro Exploration and Production Ltd. should be considered highly speculative. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Quattro Exploration and Production Ltd.
Leonard Van Betuw
President and Chief Executive Officer
Office (403) 984-3917 or Direct Line (587) 228-7070