Quattro Signs Formal Asset Purchase Agreement for 2,000 Well-log Database
December 29 2014 - 5:46PM
Quattro Exploration and Production Ltd. (TSX-V:QXP) ("Quattro" or
the "Company") is pleased to announce that it has entered into an
asset purchase agreement (the "Agreement") with an Alberta-based
private company for the previously announced acquisition of the
Company's well database for $200,000 and a GORR of 1.5% on targets
developed utilizing the database within the Western Canadian
Sedimentary Basin.
Pursuant to the terms of the Agreement, Quattro intends to fund
the acquisition with the issuance of 2,000 Class C Preferred Shares
("Preferred Shares") priced @ $100 per share, paying an annual
preferred dividend of $8.00 per share. The holder will have the
right between the 3rd and 5th year of issuance to convert the
Preferred Shares into Class A common shares at a ratio of 100 Class
A shares for each Preferred Share converted, valuing the Class A
common shares at a deemed price $1.00 per share. Closing is subject
to final TSX Venture Exchange approval.
Quattro will acquire a data base of 2,000 well logs, including
all pore pressure analysis, the associated computer algorithms and
equipment dedicated to the analysis of the pore pressures and
associated fracturing of certain geological oil and gas prospects
within the foothills of Canada. The information was accumulated
over the past 38 years and is extensive, ranging from the US border
to the Yukon Territory. The data has been a key component in the
design of safe and efficient drilling programs, with the further
benefit of assisting in the identification of pore pressures and
natural fracturing - one of the fundamental aspects of successful
well design and fracking programs.
400 of the wells logs within the database have penetrated the
deep basin, including the Montney and Duvernay formations,
resulting in an extensive analysis of regional geological trends,
measured pore pressures and associated analytical information used
to determine behavior and well performance.
Quattro is also pleased to announce the conversion of a $750,000
convertible debenture previously issued by the Company. Pursuant to
its terms, the debenture was converted into 4,000,000 units
consisting of Class A common shares and purchase warrants at an
exercise price of $0.30 per share expiring on December 27,
2017.
About Quattro Exploration and Production
Ltd.
Quattro Exploration and Production Ltd. 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 Alberta. Our core low
risk production base will provide us the capacity to aggressively
pursue a series of high impact exploration and development efforts
in Central and South America. The Company 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.
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