Quattro Releases 1st Quarter Financials, Increasing Oil Production by 150%
June 14 2016 - 6:15AM
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.
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 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
leonard@qxp-petro.com
Or
Tianda Dranchuk
Business Development
tianda.d@qxp-petro.com
www.qxp-petro.com