Quattro Exploration and Production Ltd. (TSXV:QXP) reported the approval of its $50 million capital budget, including a three year drilling program, which will commence in the third Quarter of 2014. Phase I of the program will focus on its operated lands in Western Canada.

As quoted in the press release:

The Company anticipates that its development drilling efforts combined with its ongoing remediation and consolidation activities will carry Quattro’s 2,500 boe/d exit target in 2014, up to 3,500 boe/d (net) in the 12 months ending June 30, 2015. The development wells are all incremental activities within the Company’s operated properties and will be operated by Quattro. This positions Quattro to quickly tie in new production at minimal cost. The allocations of these activities are as follows, on a net/gross interest basis;

  • 2 / 2 Vertical Oil Wells at Oak BC. – targeting the Halfway with in our current producing Pool
  • 1 / 2 Horizontal Oil Wells in East Central Alberta – targeting the Ellerslie within our current producing Pool
  • 4 / 4 Oil Wells at Rangeview Saskatchewan – targeting the Madison and Shaunavon
  • 8 /40 Oil Wells at McMullen, Alberta – targeting the Wabiskaw
  • 8 /10 Vertical Natural Gas Wells at Donalda, Alberta – targeting the Viking, Mannville and Belly River
  • 23/60 Diversified between 16(net) oil and 8(net) natural gas wells, Quattro’s net cost being approximately $13.5 million.

Quattro CEO, Leonard Van Betuw, said:

The approval of this budget by our Board of Directors is an endorsement of the Quattro team’s work and technical understanding of the potential within the Company’s diverse land base. We are now in the process of licensing the first 24 (net) wells of a 55 (net) well drilling program. These 24 wells are scheduled to be drilled in the next 12 months. We will also be continuing to increase production with our remediation and recompletion program within our existing oil and natural gas fields over the next 12 months, while drilling 23(net) development wells, 15 targeting oil and 8 targeting natural gas. In addition, we have budgeted 2 wells, 1(net) exploratory well within our 110,000 acre permit (50% net) situated in the Williston Basin of Saskatchewan. The first well is scheduled to be drilled in the 3rd quarter of 2014.

Click here to read the Quattro Exploration and Production Ltd. (TSXV:QXP) press release