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Quattro Exploration and Production Ltd. (TSX-V:QXP) has announced 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:
• Revenues $3,501,408
• 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.
