Questerre Energy Corporation
TSX : QEC
OSLO STOCK EXCHANGE : QEC

Questerre Energy Corporation

November 12, 2010 00:15 ET

Questerre Lays Groundwork for Commercial Development of Utica

CALGARY, ALBERTA--(Marketwire - Nov. 12, 2010) -

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Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC) (OSLO:QEC) reported today on its operating and financial results for the third quarter of 2010.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, "During the quarter we began to address some of the prerequisites to the next phase of establishing commerciality of the Utica shale. We are looking forward to the completion and testing of St. Gertrude and Fortierville next year and further work on our commercial demonstration project in the St. Lawrence Lowlands."

He added, "Despite the delays to the previously announced timeline, we intend to use this time to lay the groundwork for the next phase. The additional technical information and new hydrocarbon legislation will give industry the comfort it needs to make the necessary investment in the multi-well program. A local service sector will follow which increases the likelihood of optimizing well costs. This will move the Utica out of the pilot phase and, with continued success, to validating the reserve potential of this massive resource."

Highlights

  • Gentilly horizontal well test meets expectations at an initial stabilized rate of 720 Mcf/d from three fracs in the middle Utica or approximately 240 Mcf/d per frac
  • Completion of Fortierville and St. Gertrude horizontals deferred by operator to the first half of 2011
  • Concluded pipeline agreement and commenced permitting a 3-D seismic program for the commercial demonstration project targeting the St. Edouard area
  • Cash flow from operations of $1.44 million and production of 649 boe/d with improved operating efficiencies during the quarter
  • Sustained financial position with over $154 million in positive working capital and no debt

Production of 649 boe/d over the third quarter (2009: 632 boe/d) was improved from the second quarter volumes of 620 boe/d and includes early additions from our ongoing drilling program in Antler. Petroleum and natural gas revenue in the third quarter was $2.95 million (2009: $2.79 million) with oil and natural gas liquids accounting for 53% of the product mix.

Improved operating efficiencies resulted in cash flow for the period of $1.44 million for the quarter (2009: $0.50 million) and $2.15 million (2009: $2.28 million) for the year to date.

The Company reported a working capital surplus of $154.53 million at September 30, 2010 compared to $49.02 million at September 30, 2009.

Questerre Energy Corporation is an independent energy company focused on shale gas in North America. The Company is concentrated on establishing commerciality of 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.

Questerre Energy Corporation is an independent energy company focused on shale gas in North America. The Company is concentrated on establishing commerciality of 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 the results from our horizontal wells and the timing and scope of future operations. 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.

Contact Information

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