Quattro Announces the Graduation to Tier One and Issues Class C Preferred Shares at a Deemed Price of $100 Per Share

CALGARY, Alberta, Aug. 4, 2015 (GLOBE NEWSWIRE) -- Quattro Exploration and Production Ltd. (TSX-V:QXP) ("Quattro" or the "Company") is pleased to report that effective August 4, 2015 the Company's Tier classification will change from Tier 2 to Tier 1.

In addition to the graduation to becoming a Tier 1 Company on the TSX Venture Exchange, pursuant to the previously announced acquisition on June 18th, 2015, the Company (the "purchaser") issued 15,000 Series 3, Class C Preferred Shares at a deemed price of $100 per share to an Alberta base private oil and gas company (the "vendor") for the purchase of oil and gas production, facilities and lands, currently producing from the Lower Halfway and having 29 prospective locations in the Montney, Doig and Lower Halfway formations located in northeast British Columbia. The Class C shares will bear a preferred dividend of 3.5% per annum and are convertible into 40 Class A common shares for each Class C share at any time after the second year with the Company retaining the right to redeem the shares any time after the fifth year from the date of issuance.

In addition to the issuance of the Class C Preferred shares Quattro continues to pursue a number of proposals received for the issuance of additional Class C shares and Term Debt, both actions being consistent with the Company's intention of further strengthening its balance sheet and improving liquidity, while maintaining a Debt to Equity ratio of less than 1.5 to 1.

"Quattro sees a combination of the prudent use of non-high yield term debt in 2015 through 2016 and the measured issuance of dividend yielding Class C shares as the appropriate measure for moving forward during this continued downturn in the energy commodity price cycle," said Leonard Van Betuw, President and CEO. "Quattro's conservative approach has always been to maintain predictable cash-flow, to firstly align the Company with its current activities and stakeholders, while continually building Quattro's foundation for long term growth."

Quattro is currently advancing additional financing activities, the anticipation being that they will be concluded in the 3rd quarter of 2015, with a plan to increase our long term debt by approximately $4 million at favorable terms, to a targeted level of $10 million or approximately 1X forward cash-flow in the 3rd quarter of 2015. These efforts are anticipated to further improve liquidity and working capital to the degree necessary during this time of industry contraction and will position Quattro to achieve its projected exit targets for growth in 2015. The Company is currently planning to accomplish its 2015 goals from its current inventory of remediation, well workovers and re-completions associated with the acquisitions closed to date in 2015. Quattro's low-risk, high return strategy to consolidate and grow, year over year, production and cash-flow, is also anticipated to continue to position the Company potentially for further accretive opportunities for consolidation and growth in 2015 and 2016.

The Company's financials for the 2nd quarter ending June 30, 2015 are scheduled for release the week of August 24, 2015 and are anticipated to emphasize the Company's strategy of being a low cost producer and measurable long term strategy for growth through high impact exploration and low cost production.

About Quattro

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 in oil and natural gas reserves, production and profitability.

ADVISORY: Certain information in this news release, including the operations at the Company's properties, constitutes 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 of 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 fact, 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.

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 are 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.

CONTACT: Leonard Van Betuw Quattro Exploration & Production President and Chief Executive Officer Office (403) 984-3917 Direct Line (587) 228-7070 leonard@qxp-petro.com www.qxp-petro.com

Source:Quattro Exploration and Production Ltd.