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 November 4, 2015 - 8:07 PM EST
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Quattro Agrees to Purchase 444,300 BOE of Oil, Natural Gas and Liquids for $1,944,180

CALGARY, Alberta, Nov. 4, 2015 (GLOBE NEWSWIRE) -- Quattro Exploration And Production Ltd. (TSXV:QXP) ("Quattro" or the "Company") is pleased to announce that it has signed a binding agreement to purchase oil and gas production, facilities and lands in British Columbia from an Alberta-based private oil and gas exploration and production company (the "Acquisition").

The purchase price for the acquisition is $1,944,180, to be paid through the issuance of 10,625 non-voting, Class C, series 2 preferred shares at a deemed price of $100 per share ("Preferred Shares") and $881,680 in cash, to be 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"). Closing of the purchase of the Properties is scheduled for November 15, 2015, with an effective date of November 1, 2015, and is subject to a number of customary conditions including, but not limited to, completion of due diligence and approval of the TSX Venture Exchange.

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 Acquisition includes 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 13,064 (net) acres prospective in the Halfway and Baldonnel formations. The reactivation of production included in this Acquisition 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.

"The acquisition of this production, at a discount to current oil and natural gas pricing, and the additional prospective lands, is another incremental step in our business plan of being regional focused while continually improving on Quattro's economies scale in its core regions. Upon closing, this acquisition represents a production and reserves increase of more of 5% year-over-year at a cost of $12,300 per boe/d and $2.80 per boe of reserves on a 2P basis. Clearly this is an accretive addition to reaching our near term goals in northeast British Columbia." said Leonard Van Betuw, President and CEO.

Through the Acquisition, Quattro is acquiring a high working interest in low-decline production and an additional 10,552 acres (net) of undeveloped land prospective in the Halfway and Baldonnel that is complementary to our current operations. In northeast British Columbia, Quattro continues to explore and produce, targeting conventional plays in the Halfway, Doig, Bluesky, Dunlevy, Charlie Lake, Slave Point, Keg River and competitive low cost, innovative resource opportunities in the Montney, Muskwa and Otter Park formations.

Leonard Van Betuw, President of the Company, further commented, "The business plan remains the same. The execution of exploration, production and acquisitions in a robust order continues to position the Company to execute on its diversified approach to developing accretive low-risk cash-flowing operations in its three Core Regions of the Western Canadian Basin. This, in turn, funds the Company's longer term goals of high impact exploration and resource development as a profitable domestic and international integrated oil and gas producer."

Summary of the Acquisition
Production: 102 BOE per day, of long life natural gas and liquids at a cost of $12,300 per boe/d
Reserves: 444,333 boe of estimated reserves based on a proven plus probable basis**
Purchase Price: $2.82 per BOE of Proven plus Probable Reserves. **
Facilities: Current and maintained, with excess capacity.
Land: 13,064 acres; 2,512 developed and 10,552 undeveloped, valued at $837,600.
Additional Potential: (i) optimization, (ii) work-overs and (iii) seismically defined, undeveloped potential

**2P reserves are estimates based on the review of 3rd party Engineering provided by the seller, and internally verified by Quattro during its Due Diligence process.

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.

www.qxp-petro.com

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.

CONTACT: FOR FURTHER INFORMATION PLEASE CONTACT:
         
         Leonard Van Betuw
         President and Chief Executive Officer
         Office (403) 984-3917 Ext.102
         Direct Line (587) 228-7070
         leonard@qxp-petro.com
         
         Or
         
         Tianda Dranchuk
         Business Development
         Office (403) 984-3917 Ext.107
         tianda.d@qxp-petro.com

Quattro Exploration and Production Ltd.


Source: GlobeNewswire (November 4, 2015 - 8:07 PM EST)

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