CALGARY, Alberta, June 15, 2015 (GLOBE NEWSWIRE) -- Quattro Exploration and Production Ltd. (TSX-V:QXP) ("Quattro" or the "Company") is pleased to report the resumption of trading of its common shares on the TSX Venture Exchange under the trading symbol "QXP" and the successful addition of 200 boe per day at Milo Clarke Lake, in North East British Columbia. Quattro focused in the first quarter of 2015 on the remediation, equipping of 3 wells in the region and a re-entry program at Muskwa, a well that had been producing from a Keg River reef that was suspended by the previous operator.
In the summer of 2014, upon evaluating the well and the associated structure with use of 3D seismic, Quattro verified the well as a re-entry candidate and, assumed operatorship. In doing so the Company also increased its interest in the well and associated lands to 70%, prior to commencing operations in the 1st Quarter of 2015. The well which was previously tied-in to the Quattro operated facility at Milo-Clarke Lake, was re-entered, tested, equipped and successfully put into service in March of 2015. Initial tests recorded rates of 2 mmcf for 24 hours, and upon further analysis was put into service at restricted rates averaging 1.2 mmcf/day, over the past 90 days.
At year end 2014, the Company had reported proven non-producing reserves at Milo of 1Bcf (net), which the Company now believes, based on the success of the winter program, has the potential to increase the Company's reserves in 2015 to 5 Bcf (net) based on the Company's internal calculations.
In addition, the Company is also pleased to announce the receipt of the confirmation of the filing of all documents and discontinuances associated with the previously announced acquisitions, divestitures and settlement on April 30th, 2015.
These 2 acquisitions and one divestiture will be accounted for in the 2nd Quarter of 2015, a net addition of more than 220,000 barrels of oil reserves, with an estimated value of $4.5 million on a total proved basis (TP NPV10%). Quattro plans are a re-activation and re-entry program in Southwest Saskatchewan to be completed in the 3rd Quarter of 2015, on these assets in combination with additional shut-in production Quattro has in the region. The collective potential for Quattro in Saskatchewan is anticipated to initially add 500 boe/d (80% oil) to the Company's total production, currently tied into Quattro's recently re-certified compression, separators and water injection facilities with a collective capacity of more than 48,000 barrels per day of processing capacity and 6.0 mmcf/day of natural gas gathering and compression.
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 email@example.com www.qxp-petro.com
Source:Quattro Exploration and Production Ltd.