CALGARY, Alberta, June 14, 2016 (GLOBE NEWSWIRE) -- Quattro Exploration and Production Ltd. (TSX-V:QXP) ("Quattro" or the "Company") is pleased to report its financial results for the quarter ended March 31st, 2016, reporting a CDN $0.01 per share profit, exiting the 1st quarter with an additional 165 barrels per day of oil production.
The Company’s production averaged 1,646 boe/d in the first quarter with oil production increasing 150% to 465 barrels per day, as a result of the closing of its acquisition at Superb, Saskatchewan. The acquisition as announced closed on January 29th, at a time when oil and natural gas prices were selling at their lowest levels in 10 years. The acquisition is a highly underdeveloped reservoir with Quattro estimating that the remaining recoverable resource is in excess of 12 million barrels** currently producing only 240 barrels per day. Despite low commodity prices, the Company’s focus on increasing oil production contributed to the following results;
|*||Revenues - $16.01 per boe||$||2,398,139|
|*||Net income from operations - $ 5.11 per boe “Net Back”||$||764,796|
|*||Comprehensive net income||$||256,019|
|*||Cash and equivalents||$||8,208,591|
|*||Working capital (net of Long Term Debt)||$||117,413|
|*||Net debt (excluding decommissioning, non-cash liabilities & deferred taxes)||$||10,182,882|
Quattro’s oil and natural gas production year over year increased 16% during the period ending March 31, 2016, with Quattro’s increase in oil production representing 28% of the Company’s average production of 1,646 boe/day.
The Company’s focus on increasing oil production has continued into the 2nd quarter. Currently oil production is 550 barrels per day and upon the successful financing of its business plan, Quattro intends to work toward its next milestone of 800 barrels per day, anticipated to occur in the 3rd quarter of 2016.
Leonard Van Betuw, President and CEO commented, “Commodity prices in the first quarter of 2016 were the lowest the industry has experienced in 10 years. Despite this fact, the Company continued to focus on improving its operational results through an increase in oil production. Furthermore, by the end of March, the continuing capitulation of our peers and the dramatic reduction in long term investments by major producers around the world are now starting to be the factors that Quattro believes will rebalance supply. As previously stated, Quattro’s diversified and competitive low cost production strategy situated within low risk geo-political jurisdictions are what will ultimately be the foundation for the continuing improvements in the Company’s financial strength.”
Quattro continues to remain focused on the long term development of its business in its three core areas of Alberta, British Columbia and Saskatchewan. Quattro upon the filing its financials is now continuing to negotiate the funding of the full development of the Saskatchewan, Alberta and NE British Columbia oil fields to collectively reach their ultimate sustainable potential of more than 3,000 barrels per day for the next ten to fifteen years.
Upon filing of our 1st quarter financial statements and correlated MD&A, Quattro will be filing with the Alberta Securities Commission for the revocation of the management cease trade order currently in place.
**Internally estimated by the Company as defined under NI 51-101 and the COGE handbook.
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.
FOR FURTHER INFORMATION PLEASE CONTACT: Leonard Van Betuw President and Chief Executive Officer Office (403) 984-3917 Ext.102 Direct Line (587) 228-7070 email@example.com Or Tianda Dranchuk Business Development firstname.lastname@example.org www.qxp-petro.com
Source:Quattro Exploration and Production Ltd.