Quad Energy Corp.

December 07, 2010 15:42 ET

Quad Energy Corp Signs LOI to Acquire 60% Working Interest With Blue Grass Energy Inc's Eddy Country Oil and Gas Properties

ORLANDO, FLORIDA--(Marketwire - Dec. 7, 2010) - Quad Energy Corp (The Company) (PINK SHEETS:CDID) has entered into a letter of intent to acquire a 60% working interest in Blugrass Energy Inc's Cave Pool Unit oil and gas properties. The working interest of Blugrass Energy's properties covers approximately 2800 acres, located within Eddy County, NM. Currently there are 32 wells, which could be re-worked and brought back potentially to producing status. Additionally, there are over 100 possible new drilling locations based upon 20 acre spacing. Water disposal would be handled via the Cave Pool Unit's injection well which decreases water hauling costs thus increasing the economics of the Cave Pool Unit.

The Cave Pool Unit is located within the Artesia Vacuum Trend, more specifically within the Grayburg Jackson Pool. The Artesia Vacuum Trend contains thirteen reservoirs with more than 1 MMBO historic cumulative production. Cumulative production from these 13 reservoirs was 796 MMBO as of 2000. Depths to the top of reservoirs range from 1290 to 4700 ft. This is a mature field, especially within the highly productive San Andres carbonates. Lower permeability in the Grayburg sandstones, in the Grayburg Jackson reservoir during the mid-1990's, has been successful to the point of reversing production decline and is a major focus of current and future development.

Under the terms of the LOI The Quad Energy would pay up to $500,000 for Blugrass' 60% working interest in the Cave Pool Unit.

The company is undertaking due diligence and will announce the signing of a definitive agreement in the event that one is signed.

The Company has also decided after extensive Due Diligence that it is terminating the LOI with Luxur Resources as previously announced September, 30, 2010 as it does not fit into the current direction of the company.

Safe Harbor Act Notice:

Statements contained herein that are not historical facts are forward-looking statements within the meaning of the Securities Act of 1933, as amended. Those statements include statements regarding the intent, belief or current expectations of the company and its management. Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, the company's ability to obtain additional financing and the demand for the company's products. Any investment in the company would be extremely speculative and involve a high degree of risk and should not be pursued unless the investor could afford to lose their entire investment. Before investing, please review this filing, all past public filings with the SEC, all current Pinksheets.com filings and consult a registered broker dealer or contact the financial industry regulatory authority ("FINRA") for more information regarding locating a qualified party to assist in making an investment decision. The company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in the company's expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Factors that may impact the company's success are more fully disclosed in the company's most recent public filings with the U.S. Securities and Exchange Commission. Forward-looking statements are typically identified by the use of terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "predict," "project," "should," "will," and similar words, although some forward-looking statements are expressed differently. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct

About Quad Energy Corp.

An independent junior oil and gas exploration, development and production company headquartered in Orlando, FL.The Company is duly incorporated in the State of Nevada. The Company's common shares are listed for trading on the electronic over-the-counter pinksheet's (OTC-PINK) market in the United States and trades under the symbol "CDID".

Behalf of the Board of Quad Energy Corp

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