Quattro qxp - march 2016 gta update (2)

TSX.V:QXP

March 2016

Quattro

Driven by Innovation…

Progressive by Design

EXPLORATION AND PRODUCTION LTD

Disclaimer

TSX.V:QXP 1

IMPORTANT NOTICE

This presentation, its contents and any related oral presentations are confidential and the property of Quattro Exploration and Production Ltd. (“Quattro” or the “Company”) and have been prepared by theCompany solely for the use at the meeting where this document is presented and may not be taken away, reproduced, retransmitted or further distributed to any other person or published, in whole or inpart, by any medium or in any form for any purpose. By attending this presentation, you are agreement to be bound by these restrictions. Any failure to comply with these restrictions may constitute aviolation of applicable securities laws.

This presentation is an overview of the Company for information purposes only and should not be relied on for the purposes of making an investment decision. This presentation does not, and it is notintended to, provide any financial, legal, accounting, or tax advice, and must not be relied upon by you in that regard. The presentation should not be used, or relied upon by you, as a substitute for yourindependent research or consultation with your own financial, legal or tax advisors. There are significant risks associated with an investment in the Company.

The information contained in this document has been provided by the Company or obtained from publicly available sources or third party reports and has not been independently verified. No representationor warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or any opinions contained herein and nothing in thispresentation is, or shall be relied upon as, a promise or representation by the Company. It is not the intention to provide, and you may not rely on these materials as providing, a complete or comprehensiveanalysis of the Company’s financial or trading position or prospects. The information and any opinions presented herein are provided as at the date of this document based on general information gatheredat the time of writing and are subject to change without notice. None of the Company nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) forany loss howsoever arising from any use of these materials or its contents or otherwise arising in connection with this document.

This document and any related oral presentation does not constitute an offer or invitation to subscribe for, purchase or otherwise acquire any securities or other debt instruments of the Company andnothing contained herein or its presentation shall form the basis of any contract or commitment whatsoever, nor does it constitute a recommendation regarding the securities of the Company.

All dollar amounts stated in this Memorandum are expressed in Canadian currency, except where otherwise indicated.

In any disclosure related to Discovered Petroleum Initially-In-Place, the Company confirms that there is no certainty that it will be commercially viable to produce any portion of such resources.

FORWARD-LOOKING INFORMATION & FORWARD-LOOKING STATEMENTS CAUTIONARY STATEMENT

This presentation contains forward-looking information relating to capital expenditures, future drilling, drilling costs, production rates, cash flow, investment payouts, valuations, and other matters(“forward-looking statements”). These statements relate to future events or future performance. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate","budget", "plan", "estimate", "expect", "forecast", "may", "will", "project", "potential", "target", "intend", "could", "might", "should", "believe" and similar expressions. In particular, forward-lookinginformation in this presentation includes, but is not limited to, statements with respect to: completion timing and method of funding thereof; productive capacity of wells, anticipated or expectedproduction rates and anticipated dates of commencement of production; future payment of dividends, drilling and completion costs; results of our projects; the performance characteristics of properties;production levels; projections of market prices and costs; supply and demand for oil and natural gas and commodity prices; operating costs, general administrative costs, costs of services and other costs andexpenses. Forward-looking statements are based on the opinions, assumptions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties andother factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Although management believes that the expectations reflected in theforward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. These statements are not guarantees of future performance and involve known andunknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking information or forward-looking statements.

The Company cannot guarantee future results, level of activity, performance or achievements and there is no representation that the actual results achieved will be the same, in whole or in part, as those setout in the forward-looking statements. The forward-looking statements contained in this presentation are expressly qualified by this cautionary statement. We undertake no obligation to update or revisepublicly any forward-looking statements except as required by applicable securities legislation. The forward-looking statements made herein relate only to events or information as of the date on which thestatements are made. The reader is cautioned not to place undue reliance on forward-looking statements.

Some of the risks and other factors that could cause results to differ materially from those expressed in the forward-looking statements include, but are not limited to: general economic conditions in theCanada, the United States, Guatemala and globally; industry conditions including fluctuations in the price of oil and gas, governmental and environmental regulation of the oil and gas industry; geological,technical and drilling problems; unanticipated operating events; the ability to retain drilling rigs and other services; the availability of capital on acceptable terms; timing of capital expenditures, competitionfor suitable properties to acquire, failure to realize anticipated benefits of acquisitions and dispositions, weather conditions and other unanticipated operating events which can reduce production or causedelays, drilling success, resulting reserves production, ability to tie-in production, decline rates, commodity prices, exchange rates, interest rates, the need to obtain required approvals from regulatoryauthorities; volatility in market prices for commodities; liabilities inherent in oil and gas exploration operations; and changes in tax laws and incentive programs relating to the oil and gas industry and theother factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

Statements relating to “reserves” or “resources” are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves andresources described can be profitably produced in the future.

Material assumptions applied to the forward-looking statements and forward-looking information include: energy markets and the price of oil, drilling costs remaining at expected levels; drilling results,reserves and production meeting expectations; condition of general economic and financial markets; cash flow, future operating costs and the Company’s ability to obtain financing on acceptable terms.

• Invested insiders and a broad base of loyal shareholders

• Profitable, low cost, conventional oil and natural gas producer

• 87% of production is operated by the Corporation

• Extensive land base with an inventory of over 300 drilling locations

• Operator of 6 oil and natural gas gathering and processing facilities in 3 core regions

• Over 75% of the Company’s land is held by production with no capital commitments

The Foundation

TSX.V:QXP 2

March 1, 2016

QXP signed agreement to purchase 100% interest in the El Cedro License, Block 6-2012 in Guatemala, consisting of approximately34,723 hectares

The purchase price for the acquisition is CDN $5,470,000, to be paid through the issuance of 50,000 non-voting, Class C, series 3Preferred Shares at a deemed price of $100 per share (“Preferred Shares”) and the assumption of $470,000 in liabilities related tocurrent work in progress. Closing is scheduled to occur on or before May 1st, 2016.

February 2, 2016

QXP closes previous announced acquisition of a 100% interest in certain oil and gas production, facilities, and lands in WestCentral Saskatchewan increasing estimated recoverable resources in Saskatchewan to 18 Million Barrels

QXP entered into discussions with a Tier One lender regarding a proposal for the funding of a $20 million term facility at a rate aslow as 5.45% amortized over a period of 10 years

January 20, 2016

QXP agrees to purchase a 100% interest in oil and natural gas properties in Saskatchewan for an purchase price of $4,150,000

The aggregate purchase price of $4,150,000 is to be paid through the issuance of 35,000 non-voting , Class C, series 3 preferredshares at a deemed price of $100 per share (“Preferred Shares”) and $650,000 in restricted cash, held on deposit

December 31, 2015

QXP closes previously announced purchase of all the shares of SRD Innovations Inc.

QUATTRO anticipates annual savings due to the elimination of alternative services through the application and implementation ofSRD's "technology" starting in 2016 will result in a savings of approximately $500,000 per year in the next five (5) yeas based onthe Company's exploration and production plans from 2016-2020.

November 30, 2015

QXP agrees to purchase SRD Innovations Inc. for $3,500,800 through the issuance of Preferred Class “C” Shares

SRD Innovations is an Alberta-based wireless technology company focused on the collection of real-time seismic imaging forexploration, reservoir engineering, and micro-seismic for hydraulic fracture monitoring, mapping and analysis, including allcontracts, licensing revenues, patents, technologies, and ongoing research

Highlights as of March 2016

TSX.V:QXP 3

For further details and updates please visit our website: www.qxp-petro.com

* Internal estimates based on the aggregate of independent 3rd party evaluations completed in accordance with NI 51-101** Yearend Independent Evaluation completed by Deloitte Advisory Services in accordance with NI 51-101

http://www.qxp-petro.com/

Ticker Symbol TSX.V : QXP

Average 3 Month Volume 27,862

Shares Outstanding(Class A Common Shares – Basic Outstanding)

43,646,754

Net Debt (30/09/2015)

$ 2,651,087

Book Value $ 26,062,027

Corporate Profile

Financial

• $20 Revenue / boe (TTM)

• $11.50 Income / boe (TTM)

• PE Multiple of < 2X

Operational

• 110 % Growth in Margins

• 130 % Growth in Production

• 160 % Growth in Reserves (net)

2015

TSX.V:QXP 4

Corporate Share Structure

TSX.V:QXP 5

Float

(Public)

Leonard B. Van Betuw

(CEO, President & Director)

Officers & Employees

(Operations & Advisors)

Jeff Decter

(Director)

Scott Michael Reeves

(Director)

Daniel S. Harding

(Director)

Leonard A. Zaseybida(Director)

Total Basic Shares Outstanding 43,646,754 100.00%

1,054,000 2.41%

714,665 1.64%

373,334 0.86%

334,000 0.77%

32,116,422 73.58%

6,889,333 15.78%

2,165,000 4.96%

3 Year Share Price Comparison - 2014 to 2016

TSX.V:QXP 6

Quattro continues to focus on the creation of value for the Shareholder and is poised for explosive growth

QXP

NE British Columbia

TSX.V:QXP 7

PlayCecil-Halfway-Montney

Keg River-Slave Point

Muskwa - Otter Park

Acreage (net) 54,256

Production (boe/d) 930

YE Target (boe/d) 3,000

Capital Cost MM$ 5.2

2P Reserves (boe)* 3,063,000

Operated, established cash flow with long life reserves Low decline, high pressure, dry gas production 120 MMcf/d gathering and processing system 2,000 bbl/d light oil processing capacity

* Internal estimates based on the aggregate of independent 3rd party evaluations completed in accordance with NI 51-101

NE British Columbia

TSX.V:QXP 8

WESTERN CANADA – SHALE GAS BASINS QXP Operated Infrastructure• Pipelines, processing & compression• 120 mmcf/d $160 M replacement cost

QXP Long Term Opportunity• 607 km2 regional footprint• Estimated Primary Recovery: 8.75 Tcf

64 Locations – Natural Gas• Muskwa/Otter Park play • IP 360 of 6 MMcf/d (1,000 Boe/d)

10 Locations – Light Oil• Halfway and Baldonnel play• IP 360 of 100 bbl/d

20 Locations – Light Oil Liquid Rich• Lower Montney Turbidite play• IP 360 of 3.6 MMcf/d (600 Boe/d)

Muskwa/Otter Park Hz Well Type Curve

IP 9.4 MMcf/d IP 180

7.74 MMcf/d IP 360 6.23 MMcf/d

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East Central Alberta


TSX.V:QXP 10

PlayLeduc, Belly River,

Mannville and Viking




Capital Cost (MM$) 3.2


Cumulative oil production approx. 220 mbbl per well with min. capital spend 3 million boe 2P Reserves 24 MMcf/d gathering and processing system 3,000 bbl/d light oil processing capacity



TSX.V:QXP 11

QXP Infrastructure• Operated, conventional light oil and

natural gas• Operates >350km of pipeline and

gathering facilities

QXP Opportunity• Drilling

• 12 Leduc light oil locations• Remediation

• Low cost pay out <180 days• Viking and Ellerslie sweet gas

Bashaw – Leduc Net Pay (CI = 1m)

Leduc Reef Vertical Well Type Curve

10 vertical wells average

production

TSX.V:QXP 12

SW Saskatchewan

TSX.V:QXP 13

PlayMadison, Shaunavon,

Bakken, Birdbear and

Mannville




Capital Cost MM$ 3.2


SouthernSaskatchewan

100% interest in 110,000 acres exploration permit Established 2P Reserves over 1 mmbbls 6,000 bbl/d medium/heavy oil processing capacity 6 MMcf/d gathering and processing system


SW Saskatchewan

TSX.V:QXP 14

QXP Infrastructure• 100% owned and operated heavy oil and

natural gas facilities, including 25 km of pipeline

QXP Opportunity • ~36 locations ready for remediation & drilling• Total Petroleum Initially-In-Place (PIIP)

estimated at 109 mmboe

Superb – Waseca Channel Net Pay (CI = 1m)

100% Working Interest in 12,375 acres of Mannville Rights

Waseca Channel Vertical Well Type Curve

12 vertical wells average

production

TSX.V:QXP 15

June 2016 Exit Production (boe/d)

December 2016 ExitProduction (boe/d)

NE British Columbia 1,200 3,000

East Central Alberta 1,000 1,800

SW Saskatchewan 800 1,200

Total 3,000 6,000

TSX.V:QXP 16

2016 Production Target

Targeting Regions with Low Cost Oil & Natural Gas Developments

• Consolidation in three core areas

• 300 locations, 50 booked and 250 un-booked

• Operated facilities, providing immediate economies of scale

• 337,580 net acres

A Solid Balance Sheet having Debt to Equity of 1:1

Cash – Flows our Explosive Potential

December 31, 2016 – Annualized Revenue** $ 52,178,210

December 31, 2016 – Annualized NOI $ 33,195,102

General Administration @ $1.25/boe $ 2,739,356

Before Tax, Cash-Flow $ 30,455,746

** Oil priced at U.S. $32.50 W.T.I. and Natural Gas priced at CDN. $2.30 AECO

The Potential, the Capacity

17TSX.V:QXP

and the Long Term Inventory

TSX.V:QXP 18

Quattro # Wells Cost ($M) Capacity

Boe/d

Potential (BOE)

Per Well

Recoverable

Resources

(MMBOE)

Operations & Consolidation - 2016 110 4,800 91,136 10.025

Remediation, Tie-ins & Facilities - 2016 40 1,200 30,000 1.200

Heavy Oil 120 4,800 80,000 9.600

Light Oil 50 10,000 500,000 25.000

Natural Gas 80 20,000 1,350,000 108.000

Total 400 40,800 384,563 153.825

$16,800

$48,000

$52,500

$256,000

$376,300

$3,000

TSX.V:QXP 19

…to Grow

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

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5

10

15

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25

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50

1st Qtr2015

2nd Qtr2015

3rd Qtr2015

4th Qtr2015

1st Qtr2016

2nd Qtr2016

3rd Qtr2016

4th Qtr2016

1st Qtr2017

2nd Qtr2017

3rd Qtr2017

4th Qtr2017

Dai

ly P

rodu

ctio

n (B

OE)

MIL

LIO

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Quattro Exploration and Production 2015-2017

Net Revenues Operating Margin After Tax Earnings BOEPD

Guatemala 2017 …another Material Move

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Opportunity in Petén Basin Opportunity & Growth Plan

Established 100% foreign owned subsidiary to conductbusiness in Guatemala, registered to do business in allfacets of the energy sector

Announces agreement to acquire in the South Petén Basin

“Exploration and Exploitation Block 6-2012”

Negotiating to purchase a producing property of 254 boe/dof light oil in with significant undeveloped potential

Conducting technical due diligence on other opportunitiesin the South Petén Basin through the application of 3D and3C seismic evaluation techniques and directional drilling

Lower risk exploration and drilling plan to potentiallyexpand production to 10,000 boe/d with $40 million incapital expenditures in three years

Block 6-2012 and Existing Oil Fields

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Coban A

Coban B

Coban C

Coban A

Coban B

Coban C

Oil ShowsPorosity 20%

La Felicidad – 11981

NESW

Seismic Section I-82-5

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Tim

e (m

s)

2 km

For More Information

4110, 825 8th Avenue SWCalgary, AB T2P 2T3

www.qxp-petro.com

TSX.V:QXP

Leonard Van BetuwPresident & CEO

403-984-3917 Ext. 102

[email protected]

Tianda DranchukBusiness Development403-984-3917 Ext. 107

[email protected]

http://www.qxp-petro.com/

mailto:[email protected]

Appendix A - Management

TSX.V:QXP App. A

Principal Title Biography

Leonard Van Betuw• Director & Chairman• Reserves Committee

Chairman,President & CEO

Over 25 years of experience in the resource industry principally working within the Geophysical industry as a president and CEO Developed a number of 3D imaging strategies since its early introduction to the oil and gas industry in the 1980s Graduate of the University of Saskatchewan receiving BSc. (Hon.) Geophysics

Stacey LePla-Martin CFO Held the position of Joint Venture Accountant with various junior oil and gas companies, and as a consultant to a number of smalland mid-sized companies

Previously served as Corporate Secretary for Railwest Canada and Railwest U.S. Inc. Received her Production Accounting Designation (CAPPA) in 2000

Diana P. Cubillos FinancialAnalyst

14 years of experience in accounting, finance, and international tax advise Formerly worked as Tax Advisor at Commercial Bank C.A.; held the position of Senior Accountant at Deloitte Holds a Bachelor’s degree in Accounting from Santa Maria University (Caracas-Venezuela)

Daniel Lucero Erazo Exploration Manager

Recent experience has been focused on the adaptation of high resolution seismic for coal and hydrocarbon resources evaluation Previously employed at Kinetex Geosciences, CoalCorp Mining, Ferrominera, CarboRio and Andicoal Graduate of the National University of Colombia (Bogota-Colombia) with a BSc in Geology

Brent McGillivray P.Eng. Operations Manager

25 years of experience with oil and gas companies in Western Canada Former member of a successful private junior oil and gas management team that sold Westpoint Energy (formerly Slade Energy) in

2000, and Pointwest Energy in 2003 Professional engineer and member of the Association of Professional Engineers, Geologist and Geophysicists of Alberta since 1993

H. Craig Willis Consulting Advisor

Recognized leader in Deep Well Design and Mud Engineering Specialist for over 40 years Has been the mud engineer and consultant on over 400 deep wells, typically drilling to target depths of 3,500 to over 5,000 meters;

recently in Syria, the Ukraine, Brunei, Tunisia and Mexico

Les Tochor Consulting Advisor

Over 20 years of comprehensive financial management experience in both the private and not-for-profit sectors includingenterprise risk management, treasury and cash management, internal audit, supply chain management and financial reporting andplanning

Has held financial management roles at the University of Calgary, Alberta Health Services, The Calgary Health Region and TransAltaUtilities

Appendix B - Board of Directors

TSX.V:QXP App. B

Board Member Biography

Scott Reeves LLB• Corporate Secretary • Reserves Committee• Compensation Committee

Partner at the law firm of Tingle Merrett LLP; He has been with Tingle Merrett LLP since 2003 prior to which he was with the Calgary office of amajor national law firm

Has acted as corporate and securities counsel to numerous Canadian and International public and private corporations, including oil and gas,technology, mining and industrial issuers, and has wide experience in private and public debt and equity offerings, corporate acquisitions ofassets and/or shares, corporate structuring and debt financing

He is currently a director and/or officer of the several Canadian public and private companies. Holds a Bachelor of Commerce degree (Hons.-1990) from the University of Alberta and a Bachelor of Laws (Hons.-1995) degree Is a current executive member of the Advisory Board of the TSX Venture Exchange and the Canadian Bar Association's Southern Alberta Business

Subsection executive

Leonard A. Zaseybida P. Eng. • Reserves Committee

Began his professional career with Hudson’s Bay Oil & Gas in 1955 and subsequently practised as a consultant in Western Canada Formerly managed private energy companies that experienced success in developing oil and gas reserves including international operations;

Currently operates his own oil and gas interests Holds a degree in Geological Engineering from The Colorado School of Mines awarded in 1955 Licensed to practice as a Professional Engineer in Alberta and is a member of the American Association of Petroleum Geologists

Jeff Decter• Audit Committee• Compensation Committee

President of Integrity Financial Corp. focused on financing since 1998; Over 30 years of experience including sales, management and financing Prior to 1998, Mr. Decter was consistently one of the top 3 in sales at a national communications company with offices in Montreal, Toronto,

Calgary and Vancouver, developing and implementing a number of marketing strategies His experience and network of individuals and organizations, provides Quattro a broader foundation for independent advice prior to making any

measured and aggressive execution of its business plan

Daniel Harding• Audit Committee• Compensation Committee

Carries on a real estate practice in the City of Edmonton and surrounding area Served as a director and was the Chief Financial Officer of Life Sciences Institute (Predecessor to Quattro) February 2003 to November 2011 Pro-active researcher and developer of advertising and marketing strategies.

Quattro qxp - march 2016 gta update (2)

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