CALGARY, ALBERTA–(Marketwired – Sept. 15, 2014) – Quattro Exploration and Production Ltd. (“Quattro” or the “Company”) (TSX VENTURE:QXP) is pleased to announce that it has entered into an arms-length agreement (the “Letter of Intent” or “LOI”) with an Alberta-based private company for the acquisition of the Company’s well database for $800,000 and a GORR of 1.5% on targets developed utilizing the database within the Western Canadian Sedimentary Basin.
Quattro intends to fund the Acquisition with the issuance of 8,000 Convertible Class B shares priced @ $100 per share, paying an annual interest rate of 4%, to be created by the Company prior to Closing. The holder will have the right in the 3rd year to convert the Class B shares into Class A common shares at a ratio of 25 Class A share for each Class B share converted, (25:1), valuing the Class A common shares at a deemed $4.00 per share.
Quattro will acquire a data base of 2,000 well logs, including all pore pressure analysis, the associated computer algorithms and equipment dedicated to the analysis of the pore pressures and associated fracturing of certain geological oil and gas prospects within the foothills of Canada. The information was accumulated over the past 38 years and is extensive, ranging from the US border to the Yukon Territory. The data has been a key component in the design of safe and efficient drilling programs, with the further benefit of assisting in the identification of pore pressures and natural fracturing – one of the fundamental aspects of successful well design and fracking programs.
400 of the wells logs within the database have penetrated the deep basin, including the Montney and Duvernay formations, resulting in an extensive analysis of regional geological trends, measured poor pressures and associated analytical information used to determine well behavior and performance.
“The opportunity to make an acquisition of an extensive database of this magnitude is clearly in our mandate,” said Leonard Van Betuw, President and CEO, “Quattro is a focused Company that is dedicated to combining low cost production with high impact exploration. This acquisition directly supports our continuing plan to focus on diversified operations and development drilling, in combination with only the best defined and de-risked material exploration opportunities.”
Quattro Exploration and Production Ltd., is pleased to announce the formation of an Advisory Board to the Company’s officers, management, staff and Board of Directors. The Company is pleased to announce the following initial two members to the newly formed Advisory Board;
Mr. H. Craig Willis, is a recognized leader in Deep Well Design and Mud Engineering Specialist for over 40 years. His career ranges from his early years in offshore Newfoundland and Sable Island, to onshore Western Canada, which included assisting with the early challenges of Jumping Pound to the active geological settings associated with operating in the region of Fort Liard, Northwest Territories. Craig has been the mud engineer and consultant to over 400 deep wells, typically drilling to target depths of 3,500 to over 5,000 meters. His years of experience have more recently been utilized in Syria, the Ukraine, Brunei, Tunisia and Mexico to assist in the drilling of high pressure and high temperature deep wells in faulted areas. As a recognized expert in the field of hydraulics, mud rheology and well design, Craig shall be called on to apply his extensive expertise assisting with Quattro’s well design, poor pressures and drill monitoring during our exploration efforts over the coming years, both in Canada and Guatemala.
Mr. Les Tochor, brings over 20 years of comprehensive financial management experience in both the private and not-for-profit sectors including enterprise risk management, treasury and cash management, internal audit, supply chain management and financial reporting and planning. He has held financial management roles at the University of Calgary, Alberta Health Services, The Calgary Health Region and TransAlta Utilities. Mr. Tochor has focused on enhancing enterprise decision making capabilities through strategic utilization of information systems, reducing the time to report financial results and increasing the level of risk management and internal controls within an organization. Mr. Tochor successfully implemented changes in complex environments, while being sensitive to the intricacies of corporate governance and policies. Mr. Tochor has a Bachelor of Commerce degree (1990) from the University of Saskatchewan. As well, Mr. Tochor holds the designation of Chartered Accountant with the Institute of Chartered Accountants of Alberta and has a Certification In Risk Management Assurance with The Institute of Internal Auditors.
“As Quattro builds its foundation, the Company has formed its Advisory Board to insure that we have additional expertise to call on that is continually informed and dedicated to the Company. In anticipation of our accelerating business plan, we believe that an Advisory Board allows the Company to remain flexible, efficient and agile in combination with an ability to add the various areas of expertise necessary to continually strengthening our corporate governance and risk mitigation across our diversified business plan,” added Mr. Van Betuw
About Quattro Exploration and Production Ltd.
Quattro Exploration and Production Ltd. continues to focus on the conventional exploration and development of oil and natural gas reserves in Western Canada, primarily in south central Saskatchewan, with an expanding presence in Alberta. 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 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.
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
Office (403) 984-3917 or Direct Line (587) 228-7070