Questerre Energy Corporation
TSX : QEC
OSLO STOCK EXCHANGE : QEC

Questerre Energy Corporation

November 13, 2009 00:15 ET

Questerre Begins to Commercialize the Utica

CALGARY, ALBERTA--(Marketwire - Nov. 13, 2009) -

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

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

"With the pilot horizontal well program underway, evaluating the commercial parameters of the Utica shale play will be our primary focus for the next year", commented Michael Binnion, President and Chief Executive Officer of Questerre. Mr. Binnion added, "We spud our first well in the program, St. Edouard #1A, at the end of the quarter and are currently drilling the horizontal section. Based on our progress, we are in an over-pressured area which we believe will help with cleanup and recovery. We look forward to the results from this well in the first quarter of next year."

Highlights

  • St. Edouard #1 vertical well tests at an initial rate of 2.6 mmcf/d and a stabilized rate of 700 mcf/d from the middle Utica interval in the Lowlands
  • First pilot horizontal well targeting middle Utica spuds in the quarter
  • Independent assessment of the Utica shale estimates potential recoverable resource at 4.28 Tcf net to Questerre or approximately 713 million barrels of oil equivalent
  • Positive cash flow of $0.50 million and production of 632 boe/d with lower gas prices, extended production shut-ins and minimal spending on developed assets
  • Sustained financial strength with $49 million in positive working capital and no debt

Mr. Binnion further added, "During the quarter we continued to balance the preservation of capital with selective investment in our core assets. The evaluation of new drilling and completion techniques in Antler showed promising results. We hope to implement these in a possible program next year."

Production shut-ins in British Columbia and minimal capital spending, coupled with declining commodity prices, resulted in significantly lower sales volumes and cash flow in the third quarter of this year. Cash flow from operations for the quarter was $0.50 million (2008: $5.41 million) and $2.28 million for the nine months ended September 30, 2009 (2008: $14.49 million). Questerre reported positive working capital of $49 million at September 30, 2009.

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.

Petroleum and natural gas revenue in the period was $2.79 million (2008: $8.89 million) reflecting the lower commodity prices and production volumes during the period. Production averaged 632 boe/d (2008: 1,292 boe/d) with crude oil and NGLs accounting for 56% of the total volumes (2008: 39%).

This news release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"). Although the Company believes that the expectations reflected in our forward-looking statements are reasonable, our forward- looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information available to the Company. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking statements. As such, readers are cautioned not to place undue reliance on the forward looking statements, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

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.

Barrel of oil equivalent ("boe") amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil and is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead.

Contact Information

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