Quetzal Energy Ltd.
TSX VENTURE : QEI

Quetzal Energy Ltd.

July 05, 2011 16:00 ET

Quetzal Energy Ltd. Announces First Quarter 2011 Results

CALGARY, ALBERTA--(Marketwire - July 5, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Quetzal Energy Ltd. (TSX VENTURE:QEI) announces its unaudited results for the three months ended March 31, 2011.

HIGHLIGHTS DURING THE PERIOD ENDED MARCH 31, 2011

  • On January 27, 2011, the Company completed a brokered financing pursuant to a short-form prospectus in which it issued 276,000,000 common shares at $C0.125 per share for proceeds of $31,518,644, net of related costs of $3,215,956.

  • The Company began the installation of long term production testing equipment at the Canaguay #1. Most recently, production has been held to approximately 400 – 500 barrels of oil per day ("bopd") with a plan to increase production at controlled volumes in order to evaluate the well's capability. Quetzal has a 25% working interest.

  • A 95 square kilometre 3D seismic program was commenced on Block 21. Quetzal has a 50% paying working interest and is acting as the operator of the block.

  • On January 8, 2011, Quetzal commenced the acquisition of a 110 square kilometre 3D seismic survey, over a structure previously defined by 2D seismic on Block 36 in Colombia. Quetzal has a 20% paying interest in Block 36, which is operated by Montecz S.A.

RESIGNATION OF BOARD MEMBER

Mr. Richard Patricio has resigned from the board of directors, effective July 4, 2011. Quetzal appreciates the contribution that Mr. Patricio has made to the development of the Company during his tenure on the board and thanks him for his participation.

Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Quetzal, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with oil and gas activities, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

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.

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