CALGARY, ALBERTA--(Marketwire - Dec. 5, 2012) -
NOT FOR DISTRIBUTION ON U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC) (OSE:QEC) updated the status of its three existing wells targeting liquids-rich natural gas in the Kakwa-Resthaven area of Alberta.
Michael Binnion, President and Chief Executive Officer, commented, "We are pleased that our first Montney well is on production and that our second well will be tied-in shortly. Production from this area means we will meet our target of 1,000 boe/d by year end. We are also looking forward to the results from our operated well which has the same potential for high rate natural gas liquids."
Production from the first well commenced earlier this month through a third party processing plant. The operator has placed the well on production at rates of approximately 4 MMcf/d and an estimated 100 bbls/MMcf of condensate and natural gas liquids. Liquids and condensate recoveries will be based on available processing capacity at the plant. Questerre has a 37.5% working interest in this well before payout and a 25% working interest in this well after payout. Its net share of production is estimated at close to 400 boe/d.
The operator has also advised that installation of production facilities for the second well is underway. This well flowed 974 bbl/d of condensate and 4.97 MMcf/d of natural gas or 1800 boe/d over the last 24 hours of a 96-hour production test. It is anticipated this well will be tied-in into the third party processing plant in January 2013 and on production thereafter. Questerre has a 25% working interest in this well.
Questerre also reported that drilling operations will be finalized shortly on its first operated well targeting the liquids-rich Montney. Good shows of natural gas and liquids were observed during drilling. Questerre has a 100% interest in this well before payout and an 80% in this well after payout. Upon completion of this well, Questerre will have an 80% interest in six sections of land. The well is located approximately six miles to the south of the 16.75 section block where Questerre has a 25% working interest. The well will have a horizontal leg of over 1200m. Subject to equipment availability, completion operations are planned for early in the new year.
Questerre Energy Corporation is leveraging its expertise gained through early exposure to shale and other non-conventional reservoirs. The Company has base production and reserves in the tight oil Bakken/Torquay of southeast Saskatchewan. It is bringing on production from its lands in the heart of the high-liquids Montney shale fairway. It is a leader on social license to operate issues for its Utica shale gas discovery in the St. Lawrence Lowlands, Quebec. In conjunction with a supermajor, it is at the leading edge of commercializing a proven process to unlock the massive resource potential of oil shale.
Questerre is a believer that the future success of the oil and gas industry depends on a balance of economics, environment and society. We are committed to being transparent and are respectful that the public must be part of making the important choices for our energy future.
This news release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including the initial production, productive capacity, prospectivity and the timing of future operations including completions and tie-ins of its wells in the Kakwa-Resthaven area of Alberta. 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.
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.
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.