CALGARY, ALBERTA--(Marketwired - Aug. 29, 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) reported today that it has entered into an agreement with a subsidiary of Pembina Pipeline Corporation for 20 MMcf/d of natural gas and associated liquids processing at a new propane-plus (C3+) shallow cut gas plant located in the Kakwa-Resthaven area in west central Alberta.
Michael Binnion, President and Chief Executive Officer, commented, "This agreement is integral to develop our liquids-rich acreage in this area. It gives us the ability to ramp up our natural gas production to a minimum of 20 MMcf/d. More importantly this firm capacity allows us to extract our associated natural gas liquids for further processing and marketing. To date, these have averaged over 140 barrels per million cubic feet from our existing wells consisting primarily of high value condensate."
He further added, "We have taken a wellhead to burner tip approach to our market access strategy. Changes in North American liquids markets have made it essential for producers to secure key contracts for processing, transportation and marketing for all their product streams. For Questerre, these product streams include natural gas, natural gas liquids and condensate. This contract guarantees us processing capacity for our natural gas and liquids. We expect to conclude the remaining key transportation and marketing contracts for all product streams by the end of this year."
Through its participation in the planned expansion of an existing facility currently processing Questerre's gas and liquids in the area, the Company has secured capacity for 20 MMcf per day of raw natural gas production and associated liquids. The in-service date is scheduled for early to mid-2015 and is subject to receipt of regulatory and environmental approvals.
In conjunction with this contract the Company expects to conclude agreements for transportation, processing and marketing for the natural gas and liquids.
Questerre also updated the status of its fifth well in the area, the "05-23 Well". The vertical section of the well was successfully drilled, logged and cored. Drilling of the horizontal section is currently ongoing at a measured depth of approximately 4060m with a target measured depth of approximately 4900m. Questerre holds a 25% working interest in this well.
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 potential to grow the Company's natural gas and liquids production and the Company's expectation it will conclude the remaining transportation and marketing agreements for its products by year-end. 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") and billion cubic feet equivalent ("Bcfe") 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 the conversion ratio of one barrel to six thousand cubic feet 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. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalent of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.