Quattro Signs Purchase and Sale Agreement at Donalda, Alberta and Achieves Substantial Reserves Value Increase
15 May 2014 - 6:01AM
Marketwired
Quattro Signs Purchase and Sale Agreement at Donalda, Alberta and
Achieves Substantial Reserves Value Increase
CALGARY, ALBERTA--(Marketwired - May 14, 2014) - Quattro
Exploration and Production Ltd. (TSX-VENTURE:QXP) ("Quattro" or the
"Company") is pleased to announce, following the completion of both
the Milo and Donalda Acquisitions (Donalda by the end of May with a
February 1 effective date), and the ongoing efforts of Quattro's
operations team, that the Company has achieved the following
milestones in the first quarter of 2014;
- Increased average production by 210 boe/d, 18 Bopd of oil and
liquids and 192 boe/d of Natural Gas, for the quarter ended March
31st, 2014, resulting in average production of 1250 boe/d for the
period (not including the Donalda production, adding an additional
100 boe/d at the end of May).
- Continuing efforts at Donalda and Bashaw, Alberta, reducing
costs by 20% to date, half way to the target of a 40% operating
cost reduction as budgeted to be achieved by September 2014.
- 2P Reserves of 6.27 mmboe with a NPV10% value of $84.7 million,
representing a 200% replacement of the trailing 12 months
production and a 25% increase in reserves from the 5.03 mmboe
reported in Quattro's 51-101 compliant report for the year ending
2013, prepared by Deloitte Advisory Services ("Deloitte").
The April 1st update
was internally prepared by Quattro, and is provided as guidance and
a comparison to our Year End 2013 Engineering completed by
Deloitte, prior to the acquisitions announced March 25th, 2014.
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|
|
|
|
|
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Year end 2013 |
|
April 1, 2014 |
|
|
|
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Reserves 2P |
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5,030,000 boe |
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6,265,700 boe |
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NPV 10% 2P |
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$ 54,900,000 |
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$ 84,700,000 |
Leonard Van Betuw,
President and CEO commented, "As we announced in our March 25, 2014
news release, the acquisitions completed represent the measured
execution of Quattro's business plan, a combination of
consolidations, remediation and development drilling, within our
core area consisting of 190,000 acres."
"The first quarter
2014 is the solidification of our foundation, 6.27 million boe of
reserves with a book value of $42.5 million, $11.50/bbl for the
Company's oil and liquids and $ 0.54 per mcf for natural gas. Our
low cost production continues to grow as anticipated, with a focus
on achieving annualized cash-flow that positions us to grow
organically to more than 6,000 boe/d in 2016, through further
remediation and development drilling."
"Quattro continues
to be pleased with the results of our strategy, through the
execution of a diversified, low-risk material growth plan in
western Canada, we continue to focus on our commitment to
increasing corporate value both in western Canada and Central
America," stated Mr. Van Betuw.
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 BC. 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 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.
BOE
presentation:
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 & 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
BetuwPresident and Chief Executive Officer(403) 984-3917 or Direct
Line (587) 228-7070leonard@qxp-petro.comwww.qxp-petro.com
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