CALGARY, Alberta, May 11, 2015 (GLOBE NEWSWIRE) -- Quattro Exploration and Production Ltd. (TSX-V: QXP ) (" Quattro " or the " Company ") is pleased to report record results and filing of its year-end NI 51-101 reserve report, with the Company's reserves evaluation increasing to $78.8 million at year-end 2014 from $54.9 million at year-end 2013.
All numbers are based on Company interests valued as at a 10% discounted NPV, utilizing Q1 2015 price forecasting summarized in the Company's SEDAR filed NI 51-101F1 and F2. The record results equate to a 144% increase on a year-over-year basis.
Year End Reserves
- The Company's Total Proved ("TP") reserves increased to 4.402 million boe valued at $55.8 million representing $1.28 per share based on Quattro's current Class A shares outstanding of 43,476,754.
- The reserve replacement ratio, on a Total Proven Basis (reserves added/reserves produced during the year) was 357%.
- Proven plus Probable ("2P") reserves grew to 6.602 million boe, with the increases being almost entirely attributed to the Company's diversified production in northeast British Columbia and east-central Alberta.
- Quattro's Reserve Life Index ("RLI") increased to 19.3 years (Proven plus Probable).
The Company continues to work on establishing a consistent track record of adding reserves at a low cost. During the 12-month period ending December 31, 2014, the Company's total Finding, Developing and Acquisition ("FD&A") costs were $6,868,100 in 2014, or $3.41 per boe on a Proven and Probable basis. The table below provides a comparison of the Company's historical cost for reserves additions based on Total Proven ("TP") and Proven plus Probable ("2P"):
| Yearend | P + P - NPV discounted 10% | Total Proved | F D & A Cost Total Proved | Proven + Probable | F D & A Cost Proven + Probable |
| (mmboe) | ($ / boe) | (mmboe) | ($ / boe) | ||
| December 31, 2014 | $78.8 million | 4.402 | $4.32 | 6.602 | $3.41 |
| December 31, 2013 | $54.9 million | 3.251 | $2.70 | 5.030 | $1.76 |
| December 31, 2012 | $5.7 million | 0.357 | $2.38 | 0.597 | $1.42 |
"The record growth in 2014, and continuing into 2015, is founded on the strengths of our focused teams both in the office and the field. Quattro's efforts are a result of a collaborative effort from its stakeholders; employees, suppliers and shareholders, which are an integral part of our success as we continue to adapt to the new normal in terms of today's commodity pricing.
Upon the filing of NI 51-101 report and the subsequent filling of our financials we will continue to strive towards the strengthening and advancement of our business plan, that has always been based on sustainable full cycle economics for exploration and production," said Leonard B. Van Betuw, President and CEO.
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, primarily in south central Saskatchewan, with an expanding presence in Western Canada. Our core low risk production base will provide us the capacity to aggressively pursue a series of high impact exploration and development efforts in Western Canada, Central and South America. The company intends to balance this portfolio of activities to assure its shareholders that it achieves material growth including reserves, production and profitability.
ADVISORY: Certain information in this news release, including the operations at the Company's properties, constitute forward-looking statements under applicable securities laws. Although Quattro believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Quattro can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The forward-looking statements contained in this news release are made as at the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
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. It should not be assumed that the estimates of net present value of future net revenue attributable to the Company's reserves presented above represent the fair market value of the reserves. The recovery and reserve estimates of the Company's oil, NGL, and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Further there is no assurance that the forecast prices and costs assumptions will be attained and variances could be material.
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.
Leonard Van Betuw Quattro Exploration & Production President and Chief Executive Officer Office (403) 984-3917 Direct Line (587) 228-7070 www.qxp-petro.com
