CALGARY, ALBERTA–(Marketwired – June 19, 2014) – Quattro Exploration and Production Ltd. (“Quattro” or the “Company”) (TSX VENTURE:QXP) is pleased to announce the closing of the previously announced Donalda acquisition having an effective date of February 1st, 2014.
As previously announced, the acquisition, from a private Alberta-based company, includes a combination of 1,000 mcf/d of natural gas production along with associated gathering, compression and spare equipment. The acquisition results in the addition of 1,000 mcf/d to Quattro’s Donalda facilities and a 600 mcf/day (net) increase in production. Following this acquisition, the Company’s developed land base at Donalda will be 44,465 acres (net) developed and 27,810 acres (net) of undeveloped land for a total 72,275 acres(net) in the region. The Company also is scheduling further well work-overs, processing and gathering efficiencies in order to increase the Donalda production to over 3,600 mcf per day of stable, low decline production by year-end 2014.
The purchase price was $350,000 plus G.S.T. and the associated decommissioning liabilities of approximately $925,000 (net), with further post-closing adjustments as would be normally associated with an acquisition of this nature, for a total cost of $1,275,000 or $ 12,750 per flowing boe/d plus the developed and undeveloped lands. The acquisition was funded through a combination of cash on hand and current cash-flow.
Leonard Van Betuw, President and CEO commented, “Over the past 6 months, the Company continues to identify further remediation, reactivation and consolidation opportunities in its four core areas of operation. Our operational team has set a clear path to 2,500 boe/d in 2014, While the executive and Board of Directors also continue to finalize the negotiations for the increase in Quattro’s debt facilities in an effort to enhance working capital necessary to provide the operations the additional capacity to accelerate our objective of achieving 6,000 boe/d before year-end 2016.”
Currently the Company’s budget and projections are based on the pricing of $4.25 per mcf for natural gas and a blended oil price of $80 per barrel for Western Select, which results in a blended commodity price for the Corporation of $42.50 per boe. Current operations and projections are the foundation for the funding of its 3 year Organic Plan to achieve a rate of 6,000 boe/d by year-end 2016. For further information we encourage investors to visit our Website, www.qxp-petro.com to review our current Corporate Presentation for details.
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 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 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