Quattro Exploration and Production Ltd.

November 25, 2011 11:53 ET

Quattro Exploration and Production Ltd. ("QXP") Announces Signing of Conditional Sales Agreement and Option to Acquire an 80% Interest in 554,000 Acre Exploration Block in Guatemala

CALGARY, ALBERTA--(Marketwire - Nov. 25, 2011) - Quattro Exploration and Production Ltd. (TSX VENTURE:QXP) (the "Corporation" or the "Company") is pleased to report that it has entered into a Conditional Sales Agreement with a private Guatemalan corporation to acquire certain confidential data and an option to acquire an 80% interest in an exploration and production contract located in the Southern Petén Basin of Guatemala. Include in this option is the right to apply to the Guatemalan Ministry of Energy and Mines, upon the Company's election, to become the operator of the Exploration and Production Contract.

The exploration and production block is 554,000 acres in size and is located in close proximity to established oil pipelines and producing fields in the east central region of Guatemala.

The sales agreement is conditional upon completion of due diligence by the Company and the execution of a definitive agreement, which would result in the Company acquiring the right to earn a 80% interest in the Block. The block consists of a series of seismically defined structural targets previously identified upon the completion of series - 2D seismic programs totaling over 480 kilometers collected from 1980 to 1998.

In the past several years from 1981 to 2010 a series of successful targets have been drilled in the region to depths up to 3500 meters. The Company believes that its technical capacity will initially be focused on a particular target that was drilled in 1981 and put on production in 1986 thru 1987. This well logged 7 prospective zones of production, each testing from 589 to 730 barrels per day of 35 API oil. Recently other independently identified structures have been drilled, testing 1 mcf/ per day of gas, these wells both being capped due to technical, economic and logistical limitations at the time they were drilled.

The Company believes with the application of today's advanced exploration, drilling and completion techniques there is a significant opportunity for the rapid development of this exploration and production block to its full potential.

"Upon the successful conclusion of our due diligence related to the Conditional Sales Agreement", stated Leonard Van Betuw of QXP, "We will have added a very complimentary asset to our core projects in the Williston Basin of Saskatchewan."

About the Company

Quattro Exploration and Production Ltd. (TSX VENTURE:QXP) continues to focus on the conventional exploration and development of oil and natural gas reserves in Western Canada, primarily in south central Saskatchewan...combined with the intention to aggressively pursue 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.

Mission Statement

Quattro Exploration and Production Ltd. is a company based in Calgary, Canada. The company is an exploration and production company actively pursuing growth opportunities within select energy markets both domestically and internationally. Quattro utilizes an aggressive application of progressive exploration and production techniques that competitively advance its projects through a concerted strategy of value creation that is both rewarding for its shareholders and socially responsible.

Forward Looking Statements

Statements in this press release contain forward-looking information within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Readers are cautioned that assumptions used in the preparation of forward-looking information may prove to be incorrect. Although we believe that the expectations reflected in the forward -looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, level of activity, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors (many of which are beyond the control of the Corporation) that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors could cause results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, the United States and globally, the risks associated with the oil and gas industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to: operational risks in exploration, development and production; delays or changes in plans; competition for and/or inability to retain drilling rigs and other services; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; risks associated to the uncertainty of reserve estimates; governmental regulation of the oil and gas industry, including environmental regulation; geological, technical, drilling and processing problems and other difficulties in producing reserves; the uncertainty of estimates and projections of production, costs and expenses; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; incorrect assessments of the value of acquisitions; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; access to capital; and other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. The Corporation does not undertake any obligation to update or revise any forward-looking statements to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Neither 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.

Contact Information

  • Quattro Exploration and Production Ltd.
    Leonard B. Van Betuw
    President and Chief Executive Officer
    (403) 984-3917