Quattro Exploration and Production Ltd. (TSX: V.QXP, Stock Forum) announced that it has entered into an arms-length agreement with a private Alberta-based oil and gas exploration and production company to acquire certain oil and gas interests in eastern Alberta.
According to the Quattro Exploration and Production press release, the acquisition is comprised of a 100% interest in a package of gas producing properties, currently producing an aggregate 39 barrels of oil per day (of which 4% is natural gas liquids), and additional associated undeveloped lands in east central Alberta.
The production is supported by stable history over the past three years, as well as further engineering and assessments of previously shut-in wells that are identified as candidates for re-entry and remediation of up to 110 barrels of oil per day of previously producing production within the acquired lands.
The effective date of the purchase is Feb. 1, 2013, with the purchase price being a combination of $200,000 cash and 1,500,000 Class A common shares at a deemed issue price of $0.25 per share.
Quattro 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.
On Friday, Quattro was trading at $0.105 a share. The company had a market cap of $3.3 million, based on 31.3 million shares outstanding. The 52-week high and low was $0.155 and $0.06 respectively.