CALGARY, ALBERTA–(Marketwired – May 14, 2014) – Quattro Exploration and Production Ltd. (TSX VENTURE:QXP) (“Quattro” or the “Company”) is pleased to announce, following the completion of both the Milo and Donalda Acquisitions (Donalda by the end of May with a February 1 effective date), and the ongoing efforts of Quattro’s operations team, that the Company has achieved the following milestones in the first quarter of 2014;
- Increased average production by 210 boe/d, 18 Bopd of oil and liquids and 192 boe/d of Natural Gas, for the quarter ended March 31st, 2014, resulting in average production of 1250 boe/d for the period (not including the Donalda production, adding an additional 100 boe/d at the end of May).
- Continuing efforts at Donalda and Bashaw, Alberta, reducing costs by 20% to date, half way to the target of a 40% operating cost reduction as budgeted to be achieved by September 2014.
- 2P Reserves of 6.27 mmboe with a NPV10% value of $84.7 million, representing a 200% replacement of the trailing 12 months production and a 25% increase in reserves from the 5.03 mmboe reported in Quattro’s 51-101 compliant report for the year ending 2013, prepared by Deloitte Advisory Services (“Deloitte”).
The April 1st update was internally prepared by Quattro, and is provided as guidance and a comparison to our Year End 2013 Engineering completed by Deloitte, prior to the acquisitions announced March 25th, 2014.
|Year end 2013||April 1, 2014|
|Reserves 2P||5,030,000 boe||6,265,700 boe|
|NPV 10% 2P||$ 54,900,000||$ 84,700,000|
Leonard Van Betuw, President and CEO commented, “As we announced in our March 25, 2014 news release, the acquisitions completed represent the measured execution of Quattro’s business plan, a combination of consolidations, remediation and development drilling, within our core area consisting of 190,000 acres.”
“The first quarter 2014 is the solidification of our foundation, 6.27 million boe of reserves with a book value of $42.5 million, $11.50/bbl for the Company’s oil and liquids and $ 0.54 per mcf for natural gas. Our low cost production continues to grow as anticipated, with a focus on achieving annualized cash-flow that positions us to grow organically to more than 6,000 boe/d in 2016, through further remediation and development drilling.”
“Quattro continues to be pleased with the results of our strategy, through the execution of a diversified, low-risk material growth plan in western Canada, we continue to focus on our commitment to increasing corporate value both in western Canada and Central America,” stated Mr. Van Betuw.
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 BC. Our core low risk production base will provide us the capacity to aggressively pursue a series of high impact exploration and development efforts in Central and South America. The company 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 & 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
(403) 984-3917 or Direct Line (587) 228-7070