CALGARY, Alberta, July 15, 2015 (GLOBE NEWSWIRE) -- Quattro Exploration and Production Ltd. (TSX-V:QXP) ("Quattro" or the "Company") is pleased to report an increase in reserves to 8.025 million boe as of June 30, 2015, including the closing of all previously announced Acquisitions.
All numbers are an aggregate of the Company's current interests valued at a 10% discounted NPV, utilizing 2015 price forecasting summarized in the Company's SEDAR filed NI 51-101F1 and F2 and estimates independently provided by 3rd party evaluations for the Acquisitions completed in the first 6 months of 2015. The resulting activities equate to a 120% increase in reserves as of June 30, 2015, (net of production) in comparison to year-end 2015.
HIGHLIGHTS AS OF JUNE 30, 2015 FOR THE YEAR TO DATE:
- June 30, 2015 – QXP Reaches initial goal of increasing reserves by 120% through acquisitions
- Additions result in an increase, internally estimated to be 8,025 mboe, reserves (2P)*
- 10% discounted net present value of $91.6 million*
- Book value of $8.25/boe, 38% Oil & Liquids, 62% Natural Gas
- June 18, 2015 – QXP Agrees to purchase 1.288 million boe of Oil, Natural Gas, and Liquids in the vicinity of currently operated Oak Area, in the region of Fort St. John, British Columbia, closed on June 30, 2015
- Purchase price of $5.18 million paid through the issuance of 15,000 non-voting Convertible Class C Preferred Shares with a deemed value of $100 per share convertible to 40 Class A shares and the assumption of liabilities.
- May 11, 2015 – QXP Announces record year-end 2014 reserves
- 144% year-over-year increase to 6,525 mboe (2P) **
- 68% of year end reserves quantified as proven
- April 30, 2015 – QXP Closes three acquisitions and one divestiture in Western Canada
- 59,933 acres (net) of exploration land, increasing Canadian land interests to 303,134 acres (net)
- 270,000 boe of oil reserves and positioning the Company to add 300 boe/d in Q3
- February 11, 2015 – QXP honored as a TSX Venture 50® Company
- One of the top 10 ranked companies in TSXV's Oil and Gas sector
* Internal estimates based on the aggregate of independent 3rd party evaluations completed in accordance with NI 51-101
** Yearend Independent Evaluation completed by Deloitte Advisory Services in accordance with NI 51-101
"Quattro is pleased with its progress to date and continues to concentrate on striving towards the strengthening and advancement of our business plan, that has always been based on sustainable full cycle economics for exploration and production," said Leonard B. Van Betuw, President and CEO. "We guide shareholders and investors to our current Corporate Presentation on our website for further information."
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.
ADVISORY: Certain information in this news release, including the operations at the Company's properties, constitute forward-looking statements under applicable securities laws. Although Quattro believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Quattro can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The forward-looking statements contained in this news release are made as at the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
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. It should not be assumed that the estimates of net present value of future net revenue attributable to the Company's reserves presented above represent the fair market value of the reserves. The recovery and reserve estimates of the Company's oil, NGL, and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Further there is no assurance that the forecast prices and costs assumptions will be attained and variances could be material.
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 & 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.
Source:Quattro Exploration and Production Ltd.