CALGARY, Alberta, Dec. 17, 2014 (GLOBE NEWSWIRE) -- Quattro Exploration and Production Ltd. (TSX-V:QXP) ("Quattro" or the "Company") is pleased to report the completion of two divestitures resulting in total net Gains on Sales of $417,000.
In two separate transactions the Company sold a total of 38 boe/d (25% oil and liquids) valued at $1,708,900 or $44,950 per flowing boe. The effective date for these divestitures was November 1st, and December 1st, 2014 with both transactions closing on or before December 22nd, 2014. Upon the closing of these two transactions, Quattro will have reduced its decommissioning liabilities by more than 5% or $1,292,000 resulting in the average in service life of the Company's remaining wells and facilities to between 10 and 15 years. While these two divestitures reduced Quattro's interests in the Leduc Wood bend Unit and Quattro's minority interests in three shut-in wells in Northeast British Columbia to zero.
Subsequent to the negotiation of these divestitures the Company replaced the production sold through an additional acquisition in the Donalda region of Alberta. The Acquisition of 10 boe/d of flowing production and two additional shut-in wells are scheduled for remediation and reactivation which is anticipated to result in an additional 50 boe/d to be brought into service in the next four weeks at a cost of less than $5,000 per boe. The effective date of this acquisition was November 1st, 2014. At Donalda, Quattro continues to drive down costs through increasing volumes of natural gas and liquids flowing into its owned and operated gathering, compression and processing facilities having a capacity to grow to more than 4,000 boe/d.
"The divestitures had significant potential," said Leonard B. Van Betuw President and CEO, "but they were deemed to be non-core in the second Quarter of 2014, due to our minority ownership. Therefore we are very pleased with the results of these sales and the subsequent acquisition. The Board of Directors are pleased to know the success of our ongoing acquisition and divestiture process is a result of the tireless efforts of Quattro's core of Professional Engineers, Geologists, Geophysicists, Administration and Field Operators. The Company's diversified portfolio continues to allow us to work towards achieving material results, while striving to improve on its processes towards being recognized as an efficient, Best in Class, Exploration and Production Company."
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, with an expanding presence in Western Canada. Our core low risk production base will provide us the capacity to aggressively pursue a series of high impact exploration and development efforts in Western Canada, Central and South America. The company intends to balance this portfolio of activities to assure its shareholders that it achieves material growth including reserves, production and profitability.
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.
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.
CONTACT: FOR FURTHER INFORMATION PLEASE CONTACT: Leonard Van Betuw Quattro Exploration & Production President and Chief Executive Officer Office (403) 984-3917 Direct Line (587) 228-7070 email@example.com www.qxp-petro.com
Source:Quattro Exploration and Production Ltd.