Quattro announces intent to acquire producing Saskatchewan oil field
Tuesday, Apr 03, 2012Quattro Exploration And Production Ltd. (TSX VENTURE:QXP) ("Quattro" or the "Company") is pleased to announce that it has entered into an arms-length agreement with an Alberta-based oil and gas exploration and production company (the "Letter of Intent" or "LOI") to acquire 100% of three producing, conventional oil and gas fields in Southern Saskatchewan for $1.5 million (the "Acquisition"). The Acquisition is expected to close on or before May 31, 2012 and will be funded through a mix of equity and debt.
The fields are currently producing 68 barrels of oil and more than 60 barrels of oil and gas production shut in awaiting remediation. Through the Acquisition, Quattro is acquiring low-decline, high quality oil assets with a substantial land base and two underutilized, first-rate processing facilities. The majority of the assets are operated and very high working interest. The area has been underdeveloped and contains 3D seismic over the majority of the existing developed lands. Quattro also has identified additional oil targets on these lands.
Leonard Van Betuw, President of the Company, commented, "We are very pleased, this Acquisition is projected to result in the company generating positive cash flow in 2012. In addition these producing properties and facilities in combination with its current exploration efforts underway represent a significant foundation for additional material growth in 2012."
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