Questerre Energy Corporation

Questerre Energy Corporation

August 30, 2011 13:28 ET

Questerre Publishes Utica Shale Economic Benefits Fact Sheet

CALGARY, ALBERTA--(Marketwire - Aug. 30, 2011) -


Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC) (OSLO:QEC) released a fact sheet on the benefits of local energy development of the Utica shale in Québec.

"A local energy diet is not just better for our shared environment," noted Michael Binnion, President and Chief Executive Officer. He added, "Producing energy locally also creates substantial economic and social benefits. Natural gas from the Utica can be an important part of Québec's energy diet and our fact sheet highlights the economic benefits."

He further commented, "These economic benefits will be realized locally. It is simply not possible for us to mobilize all the equipment and people from Western Canada and be profitable. We need to transfer the service sector know-how and jobs to Québec to achieve the economies of scale that are essential to any commercial shale gas development."

The fact sheet entitled, "Economic Benefits of Utica Shale Development", discusses the increased employment, government revenue and economic value add created in Québec by the commercial development of the Utica. This includes:

  • Between 5,000 and 19,000 new jobs that could be created each year
  • $280 million to $1.1 billion in economic value add created annually during full field development
  • In excess of $25 million in fees and property taxes on production facilities could be paid each year to municipalities.

The fact sheet also discusses the benefits of a local service sector, benefits that were excluded by the SECOR study published last fall.

According to a study conducted by the Canadian Energy Research Institute, the services industry that supplies the oil and gas producers in Canada accounts for $65 billion dollars of national GDP in 2006. It employs nearly 800,000 people or almost 10 times more than producers. "The services sector is the jobs engine of the oil and gas industry," stated Mr. Binnion. "The real economic prize for Québec is the creation of a local services sector that could become a regional service provider for all of Eastern Canada."

In addition, improving the province's energy diet by replacing high carbon fuels with cleaner natural gas is an environmental benefit that also saves money. Local production of natural gas from the Utica will also reduce the emissions and costs associated with processing and transporting the gas from Western Canada.

Québec accounts for just over one third of Canada's consumption of heavy fuel oil, a low grade fuel that is second only to coal as a carbon intensive fuel. By substituting natural gas for this fuel, used primarily for industrial and heating purposes, Québec could reap the benefits both environmentally and fiscally. Furthermore, domestic natural gas production in Québec has the potential to reduce imports of natural gas and improve Québec's balance of trade by between $800 million to $3 billion a year.

As part of its ongoing commitment to transparency, Questerre was the first company in Québec to disclose publicly the additives it uses in its hydraulic fracturing operations, and to make a French video publicly available that explains the processes of horizontal drilling and hydraulic fracturing. Those resources and this economic benefits fact sheet are all available on the Company's website at

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.

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