CALGARY, Alberta, May 28, 2015 (GLOBE NEWSWIRE) -- Quattro Exploration and Production Ltd. (TSX-V:QXP) ("Quattro" or the "Company") is pleased to announce for its full year ending December 31st, 2014, CDN $0.06 per share earnings.
The Company recorded revenues of $18,003,880, representing 478% growth over year end 2013. In achieving strong results Quattro continued to focus on developing a strong and improving financial position as the foundation for further growth, while continuing its diverse activities of acquisitions, remediation, development drilling and exploration.
|Net income from operations, $17.19 per boe "Net Back"||$9,122,156|
|Net earnings, after tax of $0.06 per share||$1,961,736|
|Cash and equivalents||$9,347,712|
|Net debt (excluding decommissioning liabilities & deferred taxes)||$3,125,802|
At year end 2014, the Company's exit production of 1,525 boe/day represents a 140% increase over year end 2013. The Company averaged 1,450 boe/day for 2014 and anticipates that, with the closing of the asset acquisition and sales announced on April 30th, 2015, the Company's production in Canada can reach its next goal of 2,000 boe/day by fall of 2015.
The Company, building on the financial foundation as summarized above and reported in its audited year end financial statements and corresponding MD&A, will continue to progress forward utilizing its stable low decline production and substantial infrastructure as the building blocks for growth in Canada.
Concurrently with the filing of the year end audited statements and MD&A, the Company has submitted a revocation order to the Alberta and British Columbia Securities Commissions requesting the lifting of the cease trade orders that were imposed on the Company as a result of its late filing of the statements due April 30, 2014.
Leonard Van Betuw, President and CEO commented, "These strong financial results following up on strong year-over-year end growth of 144% in our oil and natural gas reserves proves to the market Quattro's continuing focus is on maintaining the capacity to make patient, measured and sound business decisions that ultimately are for the betterment of all stakeholders and will hold up over the long term."
In 2014, the Company was able to realize on its facilities investments, recording a further $1,428,000 gain on the acquisition completed in the fourth quarter of 2013. The baseline revenues associated with our facilities continue to position the Company as a low cost producer, with further incremental acquisitions and remediation continuing to position Quattro to make additional material advances in its business plan through a combination of drilling and acquisitions.
For the year ended December 31, 2014, the Company's net debt and conservative balance sheet positions the Company to continue to execute on opportunities for growth through acquisitions, development drilling and/or exploration activities.
The Company's total net debt decreased by 38% to $3,125,802 (excluding decommissioning and deferred tax accruals) from year end 2013's amount of $5,051,640. The Company's debt to equity ratio stands strong at 1.50:1, supported by positive working capital and petroleum and natural gas assets having a book value of $39,151,093. The company's P&NG book value equating to less than $6/boe, based on a net working interest position of 6.6 million boe, as reported in Quattro's independently prepared NI 51-101 reserves evaluation that was filed on May 11, 2014 and reviewed as part of the financial audit for the audit year ended December 31, 2014.
At year end 2014, Quattro as the majority owner and operator of numerous facilities and infrastructure, is a key element that provides us confidence that we will continually be able to position the Company as a low cost operator. This fact, along with the closing of the Acquisition announced on April 30th, 2015, expands the Company's operated facilities to 8 with a capacity to process up to 30 mmcf per day of natural gas and 100,000 bbls/day of oil and fluids, located in Alberta, British Columbia and Saskatchewan, positioning the Company to develop either oil or natural gas in 3 diverse core regions of Western Canada.
"2014 was a mixed bag, both rewarding and challenging," said Leonard Van Betuw, President and CEO. "Yet with volatility comes opportunity and our team, both in the office and field, as shown by the results of the past year, and perseverance of its stakeholders for the past 6 months form the catalyst to showing what Quattro can accomplish during the remainder of 2015."
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. Its 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.
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.
CONTACT: FOR FURTHER INFORMATION PLEASE CONTACT: Leonard Van Betuw Quattro Exploration and Production Ltd. President and Chief Executive Officer Office (403) 984-3917 Direct Line (587) 228-7070 firstname.lastname@example.org www.qxp-petro.com
Source:Quattro Exploration and Production Ltd.