CALGARY, ALBERTA--(Marketwire - Oct. 9, 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)(OSLO:QEC) reported today that drilling operations were successfully completed on its follow-up well targeting the liquids-rich window of the Montney shale in the Kakwa-Resthaven area of west central Alberta.
Situated approximately one mile away from its first well, the second well was drilled to a total measured depth of 4678m including a 1230m horizontal leg in the target interval of the Montney formation. Similar to the first well, good hydrocarbon shows were observed throughout the drilling of the horizontal section. Operations were completed a week ahead of schedule and under budget. The well has been cased, logged and is prepared for a multi-stage fracture stimulation.
Subject to the final program, the completion is expected to include fourteen stage nitrogen-based fracs in the target interval. The completion program has also been designed with the option to stimulate and test an additional shallower interval within the Montney formation. Completion and testing is scheduled for the next thirty days. Based on the results, the Company anticipates production facilities will be installed and the well tied-in to the recently built pipeline to the third party processing plant prior to year-end.
Questerre also updated the status of its first well. The installation of production facilities for this well and the construction of a six mile tie-in to the third party processing plant were completed earlier this month. This well flowed at gross rates of over 2,500 boe/d including 1,150 bbl/d of condensate and 8.3 MMcf/d of natural gas over the last 24 hours of testing. In addition to the condensate and natural gas, incremental volumes of natural gas liquids including propane, butane and pentane are expected.
Due to recent outages at downstream facilities that process these natural gas liquids, in particular propane and butane, the third party processing plant is temporarily unable to accept any production that includes these natural gas liquids. Production from the well is expected to commence once this restriction has been lifted. In the interim, the Company and its partners are assessing alternatives to address this short term constraint.
Questerre will have a 37.5% interest in the first well before payout and a 25% interest after payout. In the second well, Questerre has a 25% working interest.
Questerre Energy Corporation is an independent energy company focused on non-conventional oil and gas resources. The Company is currently developing a portfolio of oil shale assets in North America. It is also securing a social license to commercialize its Utica natural gas discovery in Quebec. The Company is underpinned by light oil assets and a strong balance sheet. Questerre is committed to the economic development of its resources in an environmentally conscious and socially responsible manner.
This media release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including the timeline and activities planned for the Kakwa-Resthaven area, timing for completion, testing and tie-in of the second well, drilling additional wells in the area, the timing to resolve the processing restriction to allow production from the first well, the forecast economics for this area among others. Although Questerre 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 Questerre. 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 information. As such, readers are cautioned not to place undue reliance on the forward looking information, 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, Questerre 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.