Questerre Energy Corporation
TSX : QEC
OSLO : QEC

Questerre Energy Corporation

July 05, 2013 00:15 ET

Questerre Secures Credit Facility With Canadian Chartered Bank

CALGARY, ALBERTA--(Marketwired - July 5, 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 secured a $26.5 million credit facility with a Canadian chartered bank.

Michael Binnion, President and Chief Executive Officer of Questerre commented, "This credit facility is an important part of our financing strategy for the next 12-18 months. Together with our existing cash flow and working capital, it will provide the flexibility to continue and accelerate development of the Kakwa-Resthaven area over the next year."

The credit facility is a revolving operating demand loan. Any borrowing under the facility, with the exception of Letters of Credit, bears interest at the bank's prime interest rate and an applicable basis point margin based on the ratio of debt to cash flow measured quarterly. The bank's current prime rate is 3% per annum. The facility is secured by a revolving credit agreement, a $50 million debenture with a first floating charge over all assets of the Company and a general assignment of books debts.

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 media release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including the future development of the Kakwa-Resthaven area and the Company's ability to grow its production in this area. 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.

Contact Information

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