Quattro To Buy Three Producing Saskatchewan Oil Fields

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
CA$1.5MM
Description

CANCELLED - To purchase 90% WI in 19,805 gross acres targeting upper & lower Shaunavon & Madison oil zones in Rangeview & Divide properties in SW SK, gaining 65 BO/s.

CANCELLED - Quattro Exploration And Production Ltd. (TSX VENTURE:QXP) announce that it has entered into an arms-length definitive purchase and sale agreement with an Alberta-based oil and gas exploration and production company, for $ 1.5 million, plus adjustments.

The Rangeview and Divide properties are in southwest Saskatchewan. Trafina has 90% working interest in 19,805 gross acres (17,825 net) of oil prospects targeting the upper and lower Shaunavon and Madison oil zones. There is also multi-zone exploration potential in the Cretaceous and Mannville zones.

The fields are currently producing 65 barrels of oil per day with more than 75 BOE/d 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 assets are currently operated by one party with a very high working interest. The properties have a series of underdeveloped locations and contain 3D seismic over the majority of the existing developed lands.

Quattro's due diligence process over the past 30 days has confirmed its initial analysis that the potential for further development of these fields and the associated undeveloped lands is significant. Through measured investment the Company intends to grow production to over 400 BOE/d through the refinement of operations and the drilling of the identified probable reserves within the acquired lands.

Leonard Van Betuw, President of the Company, commented, "We continue to vigorously advance this Acquisition with the intention of further positioning the Company to execute year round on its diversified approach. The Company intends to continually add accretive low-risk cash-flowing development and exploration in southern Saskatchewan, to compliment its ongoing high impact exploration and development efforts being advanced in Guatemala."