The transaction was funded through cash-flow and 80% participation by a local company.
The 100% interest acquired in the 28,800 acres oil and gas fields is estimated to have 303 million barrels of oil in place, with the company estimating 21 million barrels initially recoverable based on historic recovery rates in the region of 7%.
Quattro Exploration and Production president and CEO Leonard Van Betuw said, "These properties provide the company an opportunity to remain focused on building on our well-established core competencies, which includes in this case the detailed analysis optimization and management of conventional, shallow oil and gas reservoirs which can be enhanced through the efficient use of shallow drilling and completion techniques."
Quattro will be the operator of the first phase of the development program, which includes the reactivating and optimizing the current production of 80 barrels of oil equivalent per day and drilling four development wells.
The company has received approval and financial guarantees for funding by the private company of its 80% interest in Phase 1 which is planned to begin before the end of 2012.
The designing and optimizing of the drilling program is anticipated to be completed this month and drilling is expected to be completed before the end of the first quarter of 2013.
