CALGARY, ALBERTA--(Marketwire - Jan. 22, 2013) -
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) announced today that it has significantly increased its landholdings in the Kakwa-Resthaven area of Alberta.
Michael Binnion, President and Chief Executive Officer, commented, "Following our discovery well, we have been working to grow our initial toehold into a new core area for the Company. I am pleased to report that we now have over 37,600 gross acres, approximately 60 sections, with a 77% working interest equal to 29,000 net acres or 45 net sections. This acreage lies in the heart of the liquids-rich fairway where our initial results have met or exceeded expectations."
Mr. Binnion also commented, "We have been adding land in both the development area adjacent to our three existing wells as well as other acreage on trend where we expect similar high-liquids rates. In our development area, we now have approximately 34 gross sections with a 60% working interest or 12,800 net acres. Targeting what we believe will be the next development area, located approximately 32 km away to the northwest, we have acquired 16,000 net acres. Based on industry activity and reported results, we believe this area has similar potential."
Questerre reported that gross production from its first well continues to be approximately 1100-1300 boe/d with liquids rates of 150-200 bbls/MMcf. Questerre has a 37.5% working interest in this well before payout and a 25% working interest in this well after payout.
Tie-in and commissioning of its second well is complete and the well is scheduled to be on production by early February. Production will be based on available processing capacity at a third party plant. 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. Questerre has a 25% working interest in this well.
Questerre also updated the status of its third well, the 15-01 well. Following the successful completion of well control operations last week, the well is being prepared to resume production testing. Subject to equipment availability, Questerre expects testing to commence in late February. Questerre has a 100% interest in this well before payout and an 80% interest in this well after payout.
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 prospectivity of acreage, initial production and the productive capacity of wells 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.