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 January 20, 2016 - 6:00 AM EST
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Quattro Agrees to Purchase Oil and Natural Gas Properties in Saskatchewan for $4,150,000

CALGARY, Alberta, Jan. 20, 2016 (GLOBE NEWSWIRE) -- Quattro Exploration And Production Ltd. (TSX-V:QXP) ("Quattro" or the "Company") is pleased to announce the purchase of a 100% interest in oil and gas production, facilities and lands in west central Saskatchewan from an Alberta-based oil and gas exploration and production company (the “Acquisition”).

The purchase price for the acquisition was $4,150,000, to be paid through the issuance of 35,000 non-voting, Class C, series 3 preferred shares at a deemed price of $100 per share (“Preferred Shares”) and $650,000 in restricted cash, held on deposit, anticipated to be remitted to the vendor before January 31, 2016.  The properties are located in the region of Superb, Saskatchewan, where production averaged 160 bbls per day in 2015 (the “Properties”).

Based on the vendor’s independent 2014 year end reserve report, current pricing, and the execution of a modest capital budget, current proven reserves are 340,000, while proven and probable reserves are estimated to be approximately 540,000 bbls of oil.

All conditions of closing of the purchase of the Properties are anticipated to be completed on or before January 31st, 2016, with the Acquisition having an effective date of December 31, 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 Quattro’s Class A common shares upon conversion at a deemed price $2.50 per share.

“Upon the closing of this acquisition of oil production, at a discount to current oil and natural gas pricing, the additional prospective lands, and the extensive operated facilities in west central Saskatchewan positions Quattro with the potential to collectively reach its initial target of 1,000 boe/d from its combination of exploratory and producing properties in Saskatchewan,” said Leonard Van Betuw, President and CEO.

Summary of the Acquisition

Annual Production:160 bbls. per day with extensive operated facilities, $25,935 per bbl/d on a PDP basis
Reserves:540,000 bbls of estimated reserves, based on a proven plus probable basis**
Facilities:Current and maintained, with excess capacity.
Land:14,275 acres; 965 developed and 13,310 undeveloped, valued at $563,675.
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.  Our diversified core areas target a low risk production base focused on providing the Company the capacity to aggressively pursue a series of high impact exploration and development efforts in Canada and Central 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

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.


Leonard Van Betuw
President and Chief Executive Officer
Office (403) 984-3917 Ext.102
Direct Line (587) 228-7070


Tianda Dranchuk
Business Development
Office (403) 984-3917 Ext.107

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Source: GlobeNewswire (January 20, 2016 - 6:00 AM EST)

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