Quattro Exploration and Production Ltd.

July 17, 2012 06:30 ET

Quattro Completes Purchase of Three Saskatchewan Oil and Gas Fields

CALGARY, ALBERTA--(Marketwire - July 17, 2012) - Quattro Exploration and Production Ltd. ("Quattro" or the "Company") (TSX VENTURE:QXP) is pleased to announce that after further negotiations and due diligence it has successfully completed the unconditional purchase of the 3 Oil and Gas Fields previously announced on May 15th, 2012. The properties are located in southwest Saskatchewan, the purchase is scheduled to close on or before July 20th, 2012.

Through the Acquisition, Quattro is acquiring low-decline, high quality oil assets with a substantial land base and two underutilized, processing facilities. The properties have a series of underdeveloped locations and contain 3D seismic over the majority of the existing developed lands.

Quattro's additional due diligence process over the past 45 days continued to confirm its initial analysis that the potential for further development of these fields and the associated undeveloped lands are significant. Through measured remediation and investment on exploration Quattro intends to grow its production to over 500 BOE in Saskatchewan through continuing operational refinements and development of these acquired properties in coordination with the drilling of the company's identified exploration targets.

Leonard Van Betuw, President of the Company, commented, "We are pleased that after further negotiation we were able to conclude this acquisition as announced with the intension of rapidly positioning the company to execute year round on its diversified approach of disciplined exploration and production in southern Saskatchewan, in concert with our high impact exploration and development efforts underway in Guatemala."

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, primarily in south central Saskatchewan and the aggressive pursuit of a series of high impact exploration efforts in Central and South America. The company intends to balance a portfolio of activities that assures 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.

BOE presentation:

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 & 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.

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