Questerre Energy Corporation
TSX : QEC
OSLO STOCK EXCHANGE : QEC

Questerre Energy Corporation

August 14, 2009 00:15 ET

Questerre Moves Forward in the Utica

CALGARY, ALBERTA--(Marketwire - Aug. 14, 2009) -

NOT FOR DISTRIBUTION ON U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Questerre Energy Corporation ("Questerre" or the "Corporation") (TSX:QEC) (OSLO:QEC) reported today on the operating and financial results for the second quarter of 2009.

"We had continued success with the middle Utica interval in the second quarter. This was instrumental in our decision to accelerate development with two pilot horizontal wells targeting this interval later this year," commented Michael Binnion, President and Chief Executive Officer of Questerre.

Highlights

- Consistently positive results in the middle Utica

- Acquired significant acreage prospective for Horn River shale gas and deeper targets

- Positive cash flow of $0.72 million and production of 806 boe/d with minimal capital investment in producing assets, production shut-ins and lower prices

- Capital preservation efforts maintained working capital over $50 million and no debt

Mr. Binnion further added, "Picking our spots carefully, we added a meaningful land position in northeast B.C. for the Horn River shale and assessed new completion techniques for our oil pool at Antler, Saskatchewan. Recent industry activity in both these areas validates the significant potential of these low-cost investments. Prudent investment of capital in the current fiscal climate remained a near-term priority as we continued to defer development drilling during the period."

With minimal capital invested in producing assets, production shut-ins and lower prices, sales volumes and cash flow in the second quarter of 2009 were substantially lower than in the prior year. Cash flow from operations for the second quarter of 2009 was $0.72 million (2008: $5.14 million) and $1.78 million for the first half of 2009 (2008: $9.08 million). The Company reported a working capital surplus of $50.95 million at June 30, 2009 as compared to $68.45 million at June 30, 2008.

Petroleum and natural gas revenue in the period was $2.97 million (2008: $9.04 million) reflecting the lower commodity prices and production volumes during the period. Production averaged 806 boe/d (2008: 1,241 boe/d) with crude oil and NGLs accounting for 44% of the total volumes (2008: 25%).

This news release contains forward-looking information. Implicit in this information are assumptions regarding commodity pricing, production, royalties and expenses, that, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in the Company's plans, commodity prices, equipment availability, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee made by the Company that the actual results achieved will be the same as those forecasted herein.

This news release does not constitute an offer of securities for sale in the United States. These securities may not be offered or sold in the United States absent registration or an available exemption from registration under the United States Securities Act of 1933, as amended.

Questerre is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development oil and gas projects in Canada.

Contact Information

  • Questerre Energy Corporation
    Anela Dido
    Investor Relations
    (403) 777-1185
    (403) 777-1578 (FAX)
    Email: info@questerre.com