Quattro Announces Normal Course Issuer Bid and Provides Update

CALGARY, Alberta, Oct. 26, 2015 (GLOBE NEWSWIRE) — Quattro Exploration and Production Ltd. (TSX-V:QXP) (“Quattro” or the “Company“) a tier one TSX 50 Venture Company, is pleased to announce their intention to commence a Normal Course Issuer Bid (“The Bid“), pursuant to the acceptance of the TSX Venture Exchange.

Quattro may repurchase for cancellation up to 3,246,491 shares of its own outstanding capital stock, through the facilities of the TSX Venture Exchange or other recognized marketplaces during the period of October 28, 2015 to October 27, 2016. While maintaining the best interest of its Shareholders, the Company may, from time to time, subject to market conditions and in evaluation with any other investment opportunities that Quattro may be exploring, repurchase its shares to continue to align its share price with the long term strategy of the Company. Purchases pursuant to the bid will be made by Dundee Capital Markets on behalf of the Company.

The Company will repurchase stock within the policies and guidelines of the TSX Venture Exchange. As of October 26, 2015, Quattro had 43,736,754 shares outstanding, with the Bid representing no greater than 10% of the public float. Quattro may purchase, from time to time, up to 25% of the average 6 month trading volume, on any given trading day. The Company believes that from time to time its shares trade at a price range that does not adequately reflect the value in relation to Quattro’s growth and believes that the repurchase and cancellation can be in the future best interests of the Company and its Shareholders.

Further Updates

Subsequent to the Company’s September 14, 2015 press release, Quattro is pleased to confirm the closing of the previously announced debt financing, increasing working capital by approximately $4,000,000, at a fixed rate of 6.95% per annum at the end of the third quarter, at a cost of less than $0.40 per boe. The increased liquidity positions Quattro to continue to reduce current liabilities and accelerate the Company’s ability to progress with a combination of production optimization opportunities, acquisitions and drilling in 2015 and 2016.  The Company’s vision for the past 5 years, was to align its business to successfully pursue opportunities that can be developed within the context of current market conditions.  In 2016, further increases in Quattro’s cash flow will result in a measured increase in the exploitation of Quattro’s extensive inventory of exploration and development opportunities. This activity will drive down costs by increasing the utilization of its extensive facilities, estimated to have a replacement value of over $160 million, in conjunction with Quattro’s ongoing efforts to consolidate low-cost acquisitions into its core areas of operation and the application of proven technical Innovations that support our Progressive business plan.

Furthermore, Quattro anticipates that technical innovations and the convergence of the cost of services that the industry is realizing, as it adapts to current commodity prices, in combination with Quattro’s conservative balance sheet, continues to position the Company to find more efficiencies. Quattro, anticipates that its ongoing growth in production and reserves of oil and natural gas can be added within Company’s competitive long term target of less than $6 per proven boe and $4 on a proven plus probable basis as defined under 51-101.

Our growth, in combination with the normal course issuer bid announced today, is just one more of an number of parallel efforts that are anticipated to begin to improve the Company’s share performance, while highlighting the quality and capacity that Quattro has developed over the past 5 years as its works towards the generation of free cash-flow within the context of a sustainable and accelerating business plan.

Quattro’s, 3rd quarter financials ending September 30, 2015 are anticipated to be released on November 26th, 2015.

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, with an expanding presence in Western Canada. The Company’s core low risk production base is developing a foundation that will position Quattro to aggressively pursue a series of high impact exploration and development efforts in Western Canada, Central and South America. The company intends to balance this portfolio of activities to assure its shareholders that it achieves material long term growth in all areas, including reserves, production and profitability.

ADVISORY: Certain information in this news release, including the operations at the Company’s properties, constitute forward-looking statements under applicable securities laws. Although Quattro believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Quattro can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The forward-looking statements contained in this news release are made as at the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

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. It should not be assumed that the estimates of net present value of future net revenue attributable to the Company’s reserves presented above represent the fair market value of the reserves. The recovery and reserve estimates of the Company’s oil, NGL, and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Further there is no assurance that the forecast prices and costs assumptions will be attained and variances could be material.

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.

         Leonard Van Betuw
         President and Chief Executive Officer
         Office (403) 984-3917 Ext.102
         Direct Line (587) 228-7070
         Tianda Dranchuk
         Business Development
         Office (403) 984-3917 Ext. 107