Quattro Exploration and Production Ltd QEXXF

RE:RE:RE:hmmmm

[elgaveeno]

"The purchases were funded from working capital, the sale of the Company's operated 100% (BPO) interest and 20% (APO) interest of certain heavy oil properties in the McMullen region of Alberta, and the crediting of all associated prepaid costs owing to Quattro from the seller that occurred prior to the effective date of January 1, 2015, having a book value of $1,347,700, in addition to other intangible and commercial considerations."

So Working Capital (Undisclosed $) + McMullen + prepaid cost credit of $1,347,700  = 

SW Sask non-producing property (Divide) + 12 sections of oil sands + 50% more of Wood Mountain.

Looks like the only material part of the transaction is the amount of working capital they paid, and how they write down $1.347M. All of that won't be disclosed until sometime in Q3. Nothing to see behind the curtain...

Sa far as the Divide asset public disclosure, the asset production numbers are false prior to shut in. I won't say they are lying, but I will let others decide for themselves. The Divide producing area is limited to a narrow structural feature roughly 800m long and 100m wide. it is surrounded by dry wells. There are 2 producing intervals and 5 producers were on when last operated in May 2012. Production at that time was 33.53 bopd  (NOT 120) and 8,882 barrels of water per day. That's about a 99.7% water cut. More than a quarter of that produciton is from the Madison which is only 15 API. There is not way to get production up to 120 bopd, let alone 300. It is in the middle of a structually low and wet waistland, where only very small structural features can hold a limited amount of hydrocarbon.

The Wood Mountain area, being so remote, without infrastructure, and without any production for townships isn't worth anything.

I can't comment on the "new" heavy oil lease.