Quattro Releases 2nd Quarter Financials Reporting Net Earnings of $0.04 Per Share
CALGARY, Alberta, Aug. 26, 2015 (GLOBE NEWSWIRE) -- Quattro Exploration and Production Ltd. (TSX-V:QXP) ("Quattro" or the "Company") is pleased to announce the filing of its second quarter 2015 financial statements, reporting net earnings of CDN $0.04 per share.
The Company reported the following results for the 3 months ending June 30th, 2015:
|• Net income from operations, $ 12.55 per boe "Net Back"||$1,565,555|
|• Net earnings, after tax of $0.04 per share||$1,653,795|
|• Cash and equivalents||$9,675,000|
|• Working capital||$1,440,426|
|• Net debt||$4,236,044|
During the 3 months ended June 30, 2015, Quattro's cash-flow from operations was $703,668, and the Company's EBITDA (earnings before interest, taxes, depreciation and amortization) was $2,954,307 including a gain of $2,297,919 recorded on the acquisitions completed in the second quarter. Although a non IFRS accounting term, the Company believes EBITDA provides further guidance of funds flowing from operations for Quattro, and provides investors an opportunity to understand the Company's capacity to fund its operations and ability to continue to grow during times of volatility.
Production averaged 1,371 boe per day due to Quattro being required to shut-in all of the Company's British Columbia production for the last 21 days of June resulting in the exit rate for production being restricted to 1,150 boe per day. Facilities in both Alberta and British Columbia continue to go through various maintenance turn-a-rounds, including a third-party maintenance program at Station 2 in British Columbia that continued into July, a key gathering and compression facility in the province. Quattro managed through this period, limiting its cost of operations to an average of $14.52 per boe during the quarter despite the reduced production rates endured in the month of June.
"The second quarter of 2015 was a transitionary period for the Company," stated Leonard B. Van Betuw, President and CEO of Quattro. "The Company's year over year activities have resulted in oil and natural gas reserves growing by 120% net of production in the trailing 12 months and additions to the company inventory of low cost remediation opportunities through the completion of three acquisitions in the 2nd quarter. All capable of supporting capital expenditures that continue to offer strong returns and incremental growth within the context of the current price environment. These activities continue to position Quattro, in the current environment, for up to the next 36 months to advance its business plan. Taking a measured approach utilizing a combination of proven exploration and production techniques in step with conservative financial planning."
The Company also reported a onetime G&A expense of $164,733 related to the sale and discontinuation of operations in the McMullen region of Alberta. The Company continues to focus on operations within its core natural gas and conventional oil producing regions. The remaining facilities turn-a-rounds by mid-stream pipeline companies are anticipated to be completed in the third quarter of 2015. The Company will continue to work towards its target of reaching its next incremental operational goal of $10 per boe in 2015 in combination with a corporate G&A cost of $2.50 per boe, based on an average daily production rate of 2,500 boe per day.
About Quattro Exploration and Production Ltd.
Quattro Exploration and Production Ltd. ("QXP") focus is on the conventional exploration and development of oil and natural gas reserves in Western Canada, with an expanding presence in Alberta and British Columbia. Its 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.