CALGARY, Alberta, Nov. 18, 2015 (GLOBE NEWSWIRE) -- Quattro Exploration and Production Ltd. ("Quattro" or the "Company") (TSXV:QXP) is pleased to announce that it has closed its previously announced purchase oil and gas production, facilities and lands in British Columbia from two Alberta-based private oil and gas exploration and production companies (the "Acquisitions").
The purchase price for the Acquisitions was $1,944,180, paid through the issuance of 10,625 non-voting, Class C, series 3 preferred shares at a deemed price of $100 per share ("Preferred Shares") and $881,680 in cash, paid from working capital assumed by Quattro in the Acquisitions. The properties are located in northeast British Columbia, geologically trending complementary to Quattro's current exploration and production in the Company's core region, (the "Properties").
The Preferred Shares are priced at $100 per share and pay an annual preferred dividend of $3.50 per share. The holder will have the right on the anniversary of the 2nd year of issuance to convert the Preferred Shares into Class A common shares at a ratio of 40 Class A shares for each Preferred Share converted, valuing the Quattro Class A common shares received at a deemed price $2.50 per share.
The Acquisitions include the transfer of working capital in the form of cash deposits, a 100% interest in 102 boe/d of production (currently shut-in due to government restrictions being imposed on the seller that will be resolved as a condition of closing) and developed and undeveloped land totaling 10,036 (net) acres prospective in the Halfway and Baldonnel formations. The reactivation of production included in these Acquisitions was previously producing at an average rate of approximately 102 boe/d (net), a combination of 550 mcf/d of natural gas and 10 barrels per day of condensate.
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.
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 & 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.