Press release from Marketwire
Quattro Announces its Intentions to Acquire 100 % of Alberta Oil Field and Various Gas Interests
Tuesday, September 04, 2012
Quattro Announces its Intentions to Acquire 100 % of Alberta Oil Field and Various Gas Interests06:30 EDT Tuesday, September 04, 2012CALGARY, ALBERTA--(Marketwire - Sept. 4, 2012) - Quattro Exploration And Production Ltd. (TSX VENTURE:QXP) ("Quattro" or the "Company") is pleased to announce that it has entered into an arms-length agreement with an Alberta-based oil and gas exploration and production company (the "Letter of Intent" or "LOI") to acquire 100% of one conventional heavy oil field and a material interest in one gas field and various minor oil and gas interests within two core areas of Northern and East Central Alberta for CDN $ 3.35 million (the "Acquisition"). The Acquisition is expected to close on or before October 12th, 2012 and will be funded through a mix of equity and debt.The fields were previously producing 108 barrels per day of oil and liquids and 193 BOE/d of Gas. Quattro upon completing its due diligence has identified that an additional 100 BOE/d of oil and gas production on the subject lands that has remained shut in, awaiting remediation for the past 12 months. Through the Acquisition, Quattro is acquiring low-decline, high quality oil assets with a substantial land base, infrastructure and processing facilities. The oil assets are 100% working interests and will be operated by Quattro while the main gas properties vary from 100% operated to high non-operated working interests. Quattro expects to complete the necessary due diligence during the next 3 weeks customary to a transaction of this nature. Following closing, Quattro intends to execute a development drilling program consisting of 12-16 Slant Wells in the next 12 months from a series of 3 Pads and an all weather access road developed in the winter of 2012 by the current owner, with a further 120 wells proposed on the adjacent 18,160 acres of exploratory lands.Leonard Van Betuw, President of the Company, commented, "We are very pleased, this acquisition significantly expands Quattro's inventory of low risk development drilling locations in Western Canada to be executed over the next 3-4 years. Quattro is projecting that the resulting free cash flow will allow the Company to have the financial foundation to technically advance and fund its exploration programs both domestically and internationally."The immediate increases in production will result in the Company materially increasing its cash-flow in the following 12 months domestically with the Company anticipating exiting year end 2012 with over 500 BOE/d of production. Summary of the Acquisition Production:301 BOE/day Oil and Gas, greater than 100 BOE/day of shut in oil and gasCommon Metrics:$ 11,125 per flowing barrel; < $ 3.20 /BOE of Proven and Probable ReservesFacilities:Recently installed facilities, lease roads and numerous licensed locations.Land:> 32,640 net acres of developed and undeveloped lands(i) 24 confirmed and an additional 120 identified proposed development locations, with an ERCB approved Primary Recovery Scheme for the drilling of one vertical and 8 slant wells per pod (160 acres)(ii) 18,040 acres of additional exploration lands adjacent and on trend with the current development program.(iii) Optimization and work-over candidates within an extensively developed low decline gas fields, currently generating positive cash-flow with further developmental drilling opportunities that can be initiated over the next 3 years with the recovery of gas prices.With this Acquisition, Quattro continues to expand in regions where the company believes its strengths in applied sciences and engineering can be optimized within well-understood and partially developed conventional oil plays and underdeveloped exploratory basins resulting in repeatable and material growth. Our focused diversification of domestic operations into three areas of core competencies insures that the Company has the capacity to adapt its operations during periods of price fluctuations when deemed necessary while it internally generates and funds the exploration opportunities that allow the Company to exceed its baseline Corporate Objectives for growth.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, primarily in south central Saskatchewan and the aggressive pursuit of a series of high impact exploration efforts in Central and South America. The company intends to balance a portfolio of activities that assures 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.FOR FURTHER INFORMATION PLEASE CONTACT: Leonard Van BetuwQuattro Exploration & ProductionPresident and Chief Executive OfficerOffice (403) 984-3917 / Direct Line (587) email@example.comNeither 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.