CALGARY, ALBERTA–(Marketwired – May 27, 2014) – Quattro Exploration and Production Ltd. (TSX VENTURE:QXP) (“Quattro” or the “Company“) is pleased to announce the filing of its first quarter 2014 financial statements, reporting CDN $0.09 per share earnings.
The Company has reported the following results for the 3 months ending March 31st, 2014:
|•||Net income from operations, $18.75 per boe “Net Back”||$||2,111,200|
|•||Net earnings from operations, $0.03 per share||$||1,046,800|
|•||Income tax recovery, $0.06 per share||$||2,122,700|
|•||Net and comprehensive income, $0.09 per share||$||3,169,500|
|•||Cash and equivalents||$||5,726,600|
|•||Net debt (excluding decommissioning liabilities & deferred taxes)||$||4,105,600|
At March 31st the Company’s exit production was 1,513 boe/d not including a further 100 boe/d with an effective date of February 1st, 2014 as a result of the addition of the Donalda Acquisition announced May 14th closing on May 30th. In addition, on-going engineering, remediation, work overs and consolidation activities are anticipated to add a further 500 boe/d in the coming months, providing the Company the path to exceed its near term goal of 2,000 boe/d in July.
During the first 3 months of 2014, Quattro’s cash-flow from operations was $688,118 and the Company’s EBITDA (earnings before interest, taxes, depreciation and amortization) was $1,965,260. Although a non IFRS accounting term, the Company believes EBITDA provides further guidance of funds flowing from operations for Quattro and provides investors an opportunity to understand the Company’s capacity to fund its operations, while continuing to grow production.
“The Board of Directors are very pleased with our team’s continued focus on near term remediation, work overs and operational efficiencies while being driven by our organic business plan for material growth through a combination of accretive acquisitions and solid financial principles.” said Leonard Van Betuw, President and CEO. “In support of their efforts, the Management and Directors see it as their duty to also continue to pursue the proper utilization of our strengthening balance sheet. We see it as our responsibility as management to add additional flexibility to further accelerate our business plan and the rate of growth that Quattro and its team are capable of attaining, while remaining measured and focused on the continued improvement of the value of the shareholders’ investment in Quattro.”
The Company, in addition to its ongoing activities, anticipates the announcement in the coming weeks of an approved initial drilling budget of up to 10 development wells 8 (net) focused on oil as well as 2 exploratory wells 1.2 (net), 0.5 (net) oil and 0.7 (net) gas wells commencing in the second half of 2014 and continuing into the 1st quarter of 2015, having an estimated budget of $8,000,000 (net).
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. Its core low risk production base will provide the Company the capacity to aggressively pursue a series 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 / Direct Line (587) 228-7070