Questerre Energy Corporation
TSX : QEC
OSLO STOCK EXCHANGE : QEC

Questerre Energy Corporation

July 08, 2011 00:15 ET

Questerre Expands Antler Assets Through Acquisition

CALGARY, ALBERTA--(Marketwire - July 8, 2011) -

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 it has closed on an acquisition of producing Bakken/Torquay oil assets and undeveloped land in the Antler area of southeast Saskatchewan.

Michael Binnion, President and Chief Executive Officer, commented, "We are executing our strategy to develop Antler into a core area for Questerre. This accretive acquisition replaces low margin gas production from Beaver River with operated high netback light oil production. A number of infill and step-out locations have already been identified."

The Company acquired approximately 100 bbl/d of light oil production and 6,942 net acres of undeveloped land located approximately 18 km southeast of its existing field at Antler. The proved and probable reserves assigned to this asset by an independent reserve engineering firm as of March 31, 2011 is 419 mmboe representing only six percent of the oil in place. The cash consideration is $13.25 million.

Subject to equipment availability and weather, Questerre plans to develop this acreage with additional drilling during the second half of 2011.

Mr. Binnion added, "Developing this acreage will be another opportunity to validate our drilling, completion and production practices that have proven quite successful at our main pool in Antler with primary recoveries of eight percent of oil in place. We will also be evaluating the potential for secondary recovery techniques, such as a waterflood, which, if successful, could represent significant incremental recovery of oil in place."

The Company also reported that Talisman has filed a statement of claim with respect to amounts formally disputed by Questerre. Questerre has filed its statement of defense and counterclaim with respect to this issue. The claim is for $3.9 million and the entire amount is accounted for in the Company's most recent financial statements.

Questerre Energy Corporation is an independent energy company focused on shale projects. The Company is leveraging its expertise to commercialize projects like its Utica shale gas discovery in the St. Lawrence Lowlands, Québec. Questerre is committed to the economic development of its resources in an environmentally conscious and socially responsible manner.

This news release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including estimated production and future development plans. 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)
    info@questerre.com