CALGARY, Alberta, Dec. 31, 2014 (GLOBE NEWSWIRE) -- Quattro Exploration and Production Ltd. (TSX-V: QXP ) ("Quattro" or the "Company") is pleased to announce that it has closed its previously announced asset purchase agreement (the "Agreement") with an Alberta-based private company acquiring the Company's well database.
The acquisition was funded with the issuance of 2,000 Class C Preferred Shares ("Preferred Shares") priced @ $100 per share, paying an annual preferred dividend of $8.00 per share. The holder will have the right between the 3 rd and 5 th year of issuance to convert the Preferred Shares into Class A common shares at a ratio of 100 Class A shares for each Preferred Share converted, valuing the Class A common shares at a deemed price $1.00 per share.
Quattro will acquire a data base of 2,000 well logs, including all pore pressure analysis, the associated computer algorithms and equipment dedicated to the analysis of the pore pressures and associated fracturing of certain geological oil and gas prospects within the foothills of Canada. The information was accumulated over the past 38 years and is extensive, ranging from the US border to the Yukon Territory. The data has been a key component in the design of safe and efficient drilling programs, with the further benefit of assisting in the identification of pore pressures and natural fracturing - one of the fundamental aspects of successful well design and fracking programs.
400 of the wells logs within the database have penetrated the deep basin, including the Montney and Duvernay formations, resulting in an extensive analysis of regional geological trends, measured pore pressures and associated analytical information used to determine behavior and well performance.
About Quattro Exploration and Production Ltd.
Quattro Exploration and Production Ltd. 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. 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.
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.
FOR FURTHER INFORMATION PLEASE CONTACT: Leonard Van Betuw Quattro Exploration & Production President and Chief Executive Officer Office (403) 984-3917 Direct Line (587) 228-7070 www.qxp-petro.com
