CALGARY, Alberta, Nov. 26, 2015 (GLOBE NEWSWIRE) — Quattro Exploration and Production Ltd. (TSX-V:QXP) (“Quattro” or the “Company“) is pleased to announce the filing of its third quarter 2015 financial statements, reporting net earnings of CDN $0.01 per share.
The Company reported the following results for the 3 months ending September 30th, 2015:
|• Net income from operations, $ 11.70 per boe “Net Back”||$1,589,167|
|• Net earnings, after tax of $0.01 per share||$322,210|
|• Cash and equivalents||$12,840,218|
|• Working capital||$6,663,023|
|• Net debt||$2,651,087|
During the 3 months ended September 30, 2015, Quattro’s cash-flow from operations was $908,778 and the Company’s EBITDA (earnings before interest, taxes, depreciation and amortization) was $1,082,788. 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 and ability to continue to grow during times of volatility.
Production averaged 1,476 boe per day on a continuing restricted rate due to Quattro being required to shut-in for periods from 5 to 7 days in British Columbia and Alberta, with the exit rate at September 30 recovering to 1,580 boe per day. In the second quarter, the Corporation continued to reduce costs, with operating costs averaging $13.09 per boe compared to $14.54 per boe in the second quarter, a 9% reduction during the quarter despite production being restricted.
“In the 3rd quarter we continued to focus on improving our operating performance,” stated Leonard B. Van Betuw, President and CEO of Quattro. “The Company continued to transition from consulting services to full-time employees, with a goal of solidifying our corporate foundation and harnessing the resulting economies of scale anticipated in 2016.”
The Company’s operating budget remains on track within what is anticipated to be a volatile period of 2 years for commodity prices, expecting trading to be in a range from WTI US $40/bbl. to $50/bbl. and natural gas prices of AECO CDN $2.50/mcf to $3.50/mcf until June of 2017. Quattro’s targets being: a corporate revenue stream averaging $22.50/boe, operating costs of $8/boe, G&A of $1.50/boe and financing cost of $0.50 per boe, collectively driven to generate corporate netbacks of $12.50/boe, based on a continuing cost control initiative and the realization of additional economies through the increased utilization of Company owned and operated gathering and processing facilities.
About Quattro Exploration and Production Ltd.
Quattro Exploration and Production Ltd.’s (“QXP”) focus is 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Leonard Van Betuw
President and Chief Executive Officer
Office (403) 984-3917 Ext.102
Direct Line (587) 228-7070
Office (403) 984-3917 Ext.107
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.