The purchase price for the acquisition is $5,182,630 to be paid through the issuance of equity and the assumption of decommissioning liabilities. The properties are located in northeast British Columbia in the vicinity of Quattro’s current operated production at Oak in the Fort St. John region (the "Properties"). Closing of the purchase of the Properties is scheduled for June 30, 2015 and is subject to a number of customary conditions including, but not limited to, due diligence and approval of the TSX Venture Exchange. The effective date is June 1, 2015 with the equity portion being funded through the issuance of 15,000 non-voting Class C Preferred Shares, Series II ("Preferred Shares").

The non-voting Class C Preferred Shares, Series II ("Preferred Shares") are priced at $100 per share, paying an annual preferred dividend of $3.50 per share. The holder will have the right on the anniversary of the 2nd year of issuance to convert the Preferred Shares into Class A common shares at a ratio of 40 Class A shares for each Preferred Share converted, comparative valuing the Class A common shares at $2.50 per share.

The fields are currently producing 20 barrels per day of oil, with an additional 87 boe/d of natural gas and liquids to be brought back into service upon the completion of the Station 2 gathering system turnaround, currently underway by Spectra Energy (the mid-stream operator at Station 2) over the next 3 to 4 weeks.

"The Company’s current operations and the acquired assets in the region will benefit from the economies scale that this incremental production will add. Quattro’s existing water disposal capacity in the region will immediately reduce the acquired assets production costs. The acquisition also increases Quattro’s ability to efficiently increase cash-flow, through the consolidation of a number of opportunities within proven geological horizons. Reducing capital risk is now more than ever an important aspect, and not being opportunity constrained is important, so that further investments in the region have the potential to be material, even within the current low commodity price environment. Quattro continually reviews its priorities and anticipates that it will be initiating remediation program in the 3rd quarter, followed by development drilling starting in October of 2015," said Leonard Van Betuw, President and CEO.

Through this Acquisition, Quattro is acquiring low-decline, high-quality oil assets, a substantial land base and two, first-rate processing facilities capable of processing both oil and natural gas. The assets are operated and have very high working interest, 100% in most cases. The lands are proven in the region to be capable of producing from the Upper and Lower Halfway, Doig, Bluesky, Dunlevy, Charlie Lake and Montney formations and with a number of wells have the potential of benefitting from remediation.

Currently, Quattro will be continuing to refine 29 drilling locations seismically identified by the previous owner. The Company will be reviewing all 20 locations in the Montney resource play, 7 locations in the lower Halfway and 2 in the Doig formation and anticipates finalizing development plans for the region over the next 4-6 months.