Quattro Exploration and Production Ltd QEXXF

$10M DEBT and 75% Nat Gas

[veronikagermany]

According to the mgmt, the company has also $10 million debt and 75% of its production is natural gas. I set the things straight just because I do not like when the pumpers mislead.

I quote from the latest Q3 2013 report:

1) The foundation of the Acquisition is located in 3 regions of Western Canada currently producing more than 950 boe/d (of which greater than 25% is oil and liquids), including developed land of approximately 91,312 acres (net)......

2) Quattro will operate the majority of the assets being acquired and will own a 75% to 87% working interest in these conventional oil and gas fields in Western Canada. The effective date of the Acquisition is January 1 st, 2013, with a purchase price of $7.8 million plus G.S.T. and customary closing adjustments. Funding of the acquisition will be completed through a combination of a $5.5 million 4-year term debt facility with Business Development Bank of Canada at favorable rate of 7.15% per annum and assumed working capital.

 

In addition to this financing, the Company will continue to work towards an additional financing of up to $4.5 million by way of Convertible Debentures with a 3-year term paying an annual interest rate of 8% with a conversion price of $0.50/share and 125 bonus warrants priced at $0.50/share for each $1,000 debenture issued.

 

[veronikagermany]

Needless to mention that this 75% natural gas applies to the 2P Reserves too. In fact, the company's 2P reserves are almost 80% natural gas.

[smithgee]

I set the things straight just because I do not like when the pumpers mislead. The debt is recent and was accumulated to aquire the recent production ... I set things straight just because I do not like when the bashers mislead. Of course their motiveate is to get the weak hands to sell, so they can get in. Nice try basher, but move on as your dirty tricks will not work here.

[dublebad]

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