On track Press release from Marketwire
Quattro Signs Purchase and Sale Agreement at Donalda, Alberta and Achieves Substantial Reserves Value Increase
Wednesday, May 14, 2014
Quattro Signs Purchase and Sale Agreement at Donalda, Alberta and Achieves Substantial Reserves Value Increase
16:01 EDT Wednesday, May 14, 2014
CALGARY, ALBERTA--(Marketwired - May 14, 2014) - Quattro Exploration and Production Ltd. (TSX VENTURE:QXP) ("Quattro" or the "Company") is pleased to announce, following the completion of both the Milo and Donalda Acquisitions (Donalda by the end of May with a February 1 effective date), and the ongoing efforts of Quattro's operations team, that the Company has achieved the following milestones in the first quarter of 2014;
- Increased average production by 210 boe/d, 18 Bopd of oil and liquids and 192 boe/d of Natural Gas, for the quarter ended March 31st, 2014, resulting in average production of 1250 boe/d for the period (not including the Donalda production, adding an additional 100 boe/d at the end of May).
- Continuing efforts at Donalda and Bashaw, Alberta, reducing costs by 20% to date, half way to the target of a 40% operating cost reduction as budgeted to be achieved by September 2014.
- 2P Reserves of 6.27 mmboe with a NPV10% value of $84.7 million, representing a 200% replacement of the trailing 12 months production and a 25% increase in reserves from the 5.03 mmboe reported in Quattro's 51-101 compliant report for the year ending 2013, prepared by Deloitte Advisory Services ("Deloitte").
The April 1st update was internally prepared by Quattro, and is provided as guidance and a comparison to our Year End 2013 Engineering completed by Deloitte, prior to the acquisitions announced March 25th, 2014.
| | | | | |
| | | Year end 2013 | | April 1, 2014 |
| | | | | |
| Reserves 2P | | 5,030,000 boe | | 6,265,700 boe |
| | | | | |
| NPV 10% 2P | | $ 54,900,000 | | $ 84,700,000 |
Leonard Van Betuw, President and CEO commented, "As we announced in our March 25, 2014 news release, the acquisitions completed represent the measured execution of Quattro's business plan, a combination of consolidations, remediation and development drilling, within our core area consisting of 190,000 acres."
"The first quarter 2014 is the solidification of our foundation, 6.27 million boe of reserves with a book value of $42.5 million, $11.50/bbl for the Company's oil and liquids and $ 0.54 per mcf for natural gas. Our low cost production continues to grow as anticipated, with a focus on achieving annualized cash-flow that positions us to grow organically to more than 6,000 boe/d in 2016, through further remediation and development drilling."
"Quattro continues to be pleased with the results of our strategy, through the execution of a diversified, low-risk material growth plan in western Canada, we continue to focus on our commitment to increasing corporate value both in western Canada and Central America," stated Mr. Van Betuw.
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 BC. 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.