Quattro Exploration and Production (CVE:QXP) said Friday it signed a conditional agreement to acquire an 80 percent interest in a 554,000-acre exploration block, located in the southern Petén Basin of Guatemala.
Under the terms of the agreement, Quattro must complete due diligence, as well as a definitive agreement, in order to earn the controlling interest.
Over the past thirty years, drilling has revealed several successful targets at depths up to 3,500 metres, the company said. In the mid- to late- 1980s, a well that was drilled on one of these targets logged seven prospective zones of production, each of which tested between 589 barrels per day (bbls/d) and 730 bbls/d.
Quattro also said that more recently-identified structures have also tested one thousand cubic feet per day (mcf/d) of gas.
Each of these wells were capped shortly after their drilling, however, due to technical, economic and logistical limitations at that time. The company said that with today's advanced exploration, drilling, and completion techniques, there exists a significant opportunity for the rapid development of the block.
President and CEO, Leonard Van Betuw said: "Upon the successful conclusion of our due diligence related to the Conditional Sales Agreement, we will have added a very complimentary asset to our core projects in the Williston Basin of Saskatchewan."
Based in Calgary, Alberta, Quattro focuses on the exploration and development of oil and natural gas reserves in Western Canada, largely in south-central Saskatchewan. It has also been pursuing a series of exploration efforts in Central and South America, to balance its portfolio.