Questerre Energy Corporation
TSX : QEC
OSLO : QEC

Questerre Energy Corporation

March 08, 2012 00:31 ET

Questerre Participates in Liquids-Rich Montney Well

CALGARY, ALBERTA--(Marketwire - March 8, 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 are underway on its first well targeting the liquids-rich window of the Montney shale in the Kakwa-Resthaven area of west central Alberta.

Michael Binnion, President and Chief Executive Officer, commented, "Through a farm-in and participation in Crown land sales last year, we have a position in this area at very competitive prices given the significant industry activity over the last year. We are looking forward to the results from this well. It will diversify our conventional asset portfolio and, with success, help us achieve our target of 1,500 boe/d to 2,000 boe/d by 2013."

Questerre's acreage for this play is located in the deep over-pressured fairway of the Montney shale in Alberta. Economics are materially enhanced by the relatively high liquids content and the Crown royalty incentives for new deep horizontal wells with initial royalty rates of 5%. The most recent offset wells, located approximately twelve miles away tested at average rates of 10 MMcf/d to 15 MMcf/d of natural gas and 300 bbl/d to 600 bbl/d of natural gas liquids or between approximately 2,000 boe/d to 3,100 boe/d per well.

Drilling is currently proceeding at a measured depth of approximately 3300 m prior to drilling a 1000 m horizontal leg into the target interval in the Upper Montney formation. The operator has advised that drilling is scheduled to be completed by mid to late April 2012 with stimulation and testing planned for post spring breakup in early June 2012. In conjunction with its partners, Questerre has begun preliminary engineering work on tie-in options for this well.

Questerre will have a 37.5% interest in the well before payout and a 25% interest in this well after payout. Upon drilling and completion of this well, Questerre will have a 25% working interest in 16 contiguous sections of land in this area.

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 production targets and the results from the well being drilled in the Kakwa-Resthaven area of Alberta. 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.

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