Quattro Announces Final Closing of Donalda Acquisition of 100 boe/d in East Central Alberta
20 June 2014 - 2:25AM
Marketwired
Quattro Announces Final Closing of Donalda Acquisition of 100 boe/d
in East Central Alberta
CALGARY, ALBERTA--(Marketwired - Jun 19, 2014) - Quattro
Exploration and Production Ltd. ("Quattro" or the "Company")
(TSX-VENTURE:QXP) is pleased to announce the closing of the
previously announced Donalda acquisition having an effective date
of February 1st, 2014.
As previously announced, the acquisition, from a private
Alberta-based company, includes a combination of 1,000 mcf/d of
natural gas production along with associated gathering, compression
and spare equipment. The acquisition results in the addition of
1,000 mcf/d to Quattro's Donalda facilities and a 600 mcf/day (net)
increase in production. Following this acquisition, the Company's
developed land base at Donalda will be 44,465 acres (net) developed
and 27,810 acres (net) of undeveloped land for a total 72,275
acres(net) in the region. The Company also is scheduling further
well work-overs, processing and gathering efficiencies in order to
increase the Donalda production to over 3,600 mcf per day of
stable, low decline production by year-end 2014.
The purchase price was $350,000 plus G.S.T. and the associated
decommissioning liabilities of approximately $925,000 (net), with
further post-closing adjustments as would be normally associated
with an acquisition of this nature, for a total cost of $1,275,000
or $ 12,750 per flowing boe/d plus the developed and undeveloped
lands. The acquisition was funded through a combination of cash on
hand and current cash-flow.
Leonard Van Betuw, President and CEO commented, "Over the past 6
months, the Company continues to identify further remediation,
reactivation and consolidation opportunities in its four core areas
of operation. Our operational team has set a clear path to 2,500
boe/d in 2014, While the executive and Board of Directors also
continue to finalize the negotiations for the increase in Quattro's
debt facilities in an effort to enhance working capital necessary
to provide the operations the additional capacity to accelerate our
objective of achieving 6,000 boe/d before year-end 2016."
Currently the Company's budget and projections are based on the
pricing of $4.25 per mcf for natural gas and a blended oil price of
$80 per barrel for Western Select, which results in a blended
commodity price for the Corporation of $42.50 per boe. Current
operations and projections are the foundation for the funding of
its 3 year Organic Plan to achieve a rate of 6,000 boe/d by
year-end 2016. For further information we encourage investors to
visit our Website, www.qxp-petro.com to review our current
Corporate Presentation for details.
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. It's 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.
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 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.
Quattro Exploration and Production Ltd.Leonard Van
BetuwPresident and Chief Executive OfficerOffice (403) 984-3917 /
Direct Line (587)
228-7070leonard@qxp-petro.comwww.qxp-petro.com
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