CALGARY, Alberta, June 14, 2016 (GLOBE NEWSWIRE) — Quattro Exploration and Production Ltd. (TSX-V:QXP) (“Quattro” or the “Company“) is pleased to report its financial results for the quarter ended March 31st, 2016, reporting a CDN $0.01 per share profit, exiting the 1st quarter with an additional 165 barrels per day of oil production.
The Company’s production averaged 1,646 boe/d in the first quarter with oil production increasing 150% to 465 barrels per day, as a result of the closing of its acquisition at Superb, Saskatchewan. The acquisition as announced closed on January 29th, at a time when oil and natural gas prices were selling at their lowest levels in 10 years. The acquisition is a highly underdeveloped reservoir with Quattro estimating that the remaining recoverable resource is in excess of 12 million barrels** currently producing only 240 barrels per day. Despite low commodity prices, the Company’s focus on increasing oil production contributed to the following results;
|*||Revenues – $16.01 per boe||$||2,398,139|
|*||Net income from operations – $ 5.11 per boe “Net Back”||$||764,796|
|*||Comprehensive net income||$||256,019|
|*||Cash and equivalents||$||8,208,591|
|*||Working capital (net of Long Term Debt)||$||117,413|
|*||Net debt (excluding decommissioning, non-cash liabilities & deferred taxes)||$||10,182,882|
Quattro’s oil and natural gas production year over year increased 16% during the period ending March 31, 2016, with Quattro’s increase in oil production representing 28% of the Company’s average production of 1,646 boe/day.
The Company’s focus on increasing oil production has continued into the 2nd quarter. Currently oil production is 550 barrels per day and upon the successful financing of its business plan, Quattro intends to work toward its next milestone of 800 barrels per day, anticipated to occur in the 3rd quarter of 2016.
Leonard Van Betuw, President and CEO commented, “Commodity prices in the first quarter of 2016 were the lowest the industry has experienced in 10 years. Despite this fact, the Company continued to focus on improving its operational results through an increase in oil production. Furthermore, by the end of March, the continuing capitulation of our peers and the dramatic reduction in long term investments by major producers around the world are now starting to be the factors that Quattro believes will rebalance supply. As previously stated, Quattro’s diversified and competitive low cost production strategy situated within low risk geo-political jurisdictions are what will ultimately be the foundation for the continuing improvements in the Company’s financial strength.”
Quattro continues to remain focused on the long term development of its business in its three core areas of Alberta, British Columbia and Saskatchewan. Quattro upon the filing its financials is now continuing to negotiate the funding of the full development of the Saskatchewan, Alberta and NE British Columbia oil fields to collectively reach their ultimate sustainable potential of more than 3,000 barrels per day for the next ten to fifteen years.
Upon filing of our 1st quarter financial statements and correlated MD&A, Quattro will be filing with the Alberta Securities Commission for the revocation of the management cease trade order currently in place.
**Internally estimated by the Company as defined under NI 51-101 and the COGE handbook.
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.