|By Marketwired .||
|June 30, 2014 06:00 AM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 06/30/14 -- Quattro Exploration and Production Ltd. ("Quattro" or the "Company") (TSX VENTURE: QXP) is pleased to announce the approval of its $50 million capital budget, including a 3 year drilling program, which will commence in the 3rd Quarter of 2014 with Phase I being focused on its operated lands in Western Canada.
"The approval of this budget by our Board of Directors is an endorsement of the Quattro team's work and technical understanding of the potential within the Company's diverse land base." said Leonard Van Betuw, President and CEO. "We are now in the process of licensing the first 24 (net) wells of a 55 (net) well drilling program. These 24 wells are scheduled to be drilled in the next 12 months. We will also be continuing to increase production with our remediation and recompletion program within our existing oil and natural gas fields over the next 12 months, while drilling 23(net) development wells, 15 targeting oil and 8 targeting natural gas. In addition, we have budgeted 2 wells, 1(net) exploratory well within our 110,000 acre permit (50% net) situated in the Williston Basin of Saskatchewan. The first well is scheduled to be drilled in the 3rd quarter of 2014."
The Company anticipates that its development drilling efforts combined with its ongoing remediation and consolidation activities will carry Quattro's 2,500 boe/d exit target in 2014, up to 3,500 boe/d (net) in the 12 months ending June 30, 2015. The development wells are all incremental activities within the Company's operated properties and will be operated by Quattro. This positions Quattro to quickly tie in new production at minimal cost. The allocations of these activities are as follows, on a net/gross interest basis;
2 / 2 Vertical Oil Wells at Oak BC. - targeting the Halfway with in our current producing Pool
1 / 2 Horizontal Oil Wells in East Central Alberta - targeting the Ellerslie within our current producing Pool
4 / 4 Oil Wells at Rangeview Saskatchewan - targeting the Madison and Shaunavon
8 /40 Oil Wells at McMullen, Alberta - targeting the Wabiskaw
8 /10 Vertical Natural Gas Wells at Donalda, Alberta - targeting the Viking, Mannville and Belly River
23/60 Diversified between 16(net) oil and 8(net) natural gas wells, Quattro's net cost being approximately $13.5 million.
The proposed wells are located within Quattro's existing lands, operated by the Company where there is proven production and established well performance. Therefore they have been deemed to be low risk development wells, using proven drilling and completion techniques with unrestricted access into our existing facilities. The Phase I program is estimated to be completed at an average cost of $18,000 per bopd for oil and $7,200 per boe/d for natural gas.
1/2 Exploration Wells at Wood Mountain, Saskatchewan - Targeting the Bakken, Birdbear and Duperow
The Exploratory well in the Williston Basin and continuing exploration efforts are budgeted at $1.65 million and will be used to further evaluate the un-booked potential currently identified in southern Saskatchewan.
The balance of the budget totaling $35m has been allocated as follows: $20 million in Western Canada in 2015-2016 with the remaining $15 million in expenditures in Guatemala in the second half of 2015 and 2016.
The capital budget will be funded from cash on hand and the allocation of 70% of projected cash-flow from operations anticipated in the next 30 months. Phase I of the budget is supported by our trailing performance and engineering independently reviewed in May 2014, by our lender prior to the approval and funding of our updated fixed term loan.
The Company is also pleased to announce the negotiated increase in our term loan facility with Business Development Bank of Canada ("BDC"). The current loan of $5.125 million was replaced with an $8 million term loan with the additional amount used to payout a capital lease and the balance of $2.35m applied to working capital.
"We are pleased with the outcome of our negotiations." commented Leonard Van Betuw, "The prompt response from BDC is a strong endorsement of our past performance and our continuing operations. They continue to recognize our measured and continuing approach to operating within our cash-flow, while maintaining a conservative estimate of future pricing of oil and natural gas for long term planning. The new term loan represents a reduction in our interest rate to a fixed rate of 6.55% with fixed payment terms for both interest and principle that are less than $2.00 per boe at yearend 2014 and becoming less than $1.50 per boe by year end 2015. BDC's prompt attention to our request and their appreciation to the detail of our business plan speaks for itself."
The Company's budget and projections are based on the pricing of $4.25 per mcf for natural gas and a blended oil price of $80 per barrel for Western Select. These prices result in a blended commodity price for the Corporation of $42.50 per boe, which is projected to grow to $55 per boe by the end of 2015.
This announcement of Quattro's development drilling activities, which have been in the planning stages for the past 12 months, further expands on the details disclosed in in our projections and the anticipated expansion of Quattro's operating netbacks from $18.75/boe in the 1st quarter of 2014 to approximately $25/boe by the 4th quarter of 2015. The drilling of 24 (net) wells to increase oil production, and the incremental reduction in operating expenses, while continuing, remediation, re-activations and consolidation are budgeted to be achieved without any reduction in our long term budget for engineering and business development in Western Canada and Guatemala.
Quattro continues to diligently strengthen the foundation of the Company, as summarized in our operations and projections outlined in our 3 year organic plan, to achieve a rate of 6,000 boe/d by year-end 2016.
For further information we encourage investors to visit our Website, www.qxp-petro.com to review our current Corporate Presentation for details.
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 British Columbia. It's core low risk production base will provide the Company the capacity to aggressively pursue a series of high impact exploration and development efforts in Central and South America. Quattro 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.
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 and 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.
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single threaded, you can effectively identify hot spots in your serverless code. In his session at 20th Cloud Expo, David Martin, Principal Product Owner at CA Technologies, will give a live demonstration and code walkthrough, showing how to o...
Apr. 30, 2017 12:15 PM EDT Reads: 859
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Apr. 30, 2017 12:00 PM EDT Reads: 1,370
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
Apr. 30, 2017 12:00 PM EDT Reads: 1,631
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Apr. 30, 2017 12:00 PM EDT Reads: 1,916
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Apr. 30, 2017 11:30 AM EDT Reads: 2,436
Cloud Expo, Inc. has announced today that Aruna Ravichandran, vice president of DevOps Product and Solutions Marketing at CA Technologies, has been named co-conference chair of DevOps at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Apr. 30, 2017 11:30 AM EDT Reads: 2,909
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
Apr. 30, 2017 10:15 AM EDT Reads: 2,574
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Apr. 30, 2017 10:00 AM EDT Reads: 1,719
Translating agile methodology into real-world best practices within the modern software factory has driven widespread DevOps adoption, yet much work remains to expand workflows and tooling across the enterprise. As models evolve from pockets of experimentation into wholescale organizational reinvention, practitioners find themselves challenged to incorporate the culture and architecture necessary to support DevOps at scale. In his session at @DevOpsSummit at 20th Cloud Expo, Anand Akela, Senior...
Apr. 30, 2017 10:00 AM EDT Reads: 2,054
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Apr. 30, 2017 09:45 AM EDT Reads: 1,857
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs oft...
Apr. 30, 2017 09:15 AM EDT Reads: 835
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
Apr. 30, 2017 09:15 AM EDT Reads: 1,445
As pervasive as cloud technology is -- and as persuasive as the arguments are for using it -- the cloud has its limits. Some companies will always have security concerns about storing data in the cloud and certain high-transaction applications will always be better suited for on-premises storage. Those statements were among the bottom-line takeaways delivered at Cloud Expo this week, a three day, bi-annual event focused on cloud technologies, adoption and associated challenges.
Apr. 30, 2017 09:00 AM EDT Reads: 4,300
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Apr. 30, 2017 08:30 AM EDT Reads: 1,836
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Apr. 30, 2017 08:15 AM EDT Reads: 1,639