CALGARY, ALBERTA--(Marketwired - April 17, 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 its well at 15-01-62-06-W6M ("15-01" or the "Well") in the Kakwa-Resthaven area of west central Alberta is being prepared for testing.
The Well was completed in the target interval of the Montney formation with a multi-stage water-based nitrogen foam fracture stimulation in the 1200m horizontal leg. During initial flow back, equipment failure resulted in an uncontrolled release of completion fluids and gas for approximately 48 hours. The Well was subsequently brought under control and workover operations commenced in mid-February to prepare the Well for further testing.
Heavy weight drilling fluids were circulated to maintain pressure control during operations to retrieve the damaged production casing and other downhole equipment. Production tubing will be run within the next two weeks. Subject to equipment availability and weather, the Company plans to test the Well shortly thereafter with results expected by mid-May. The Company also received a preliminary environmental impact report on the control of well incident. It estimates that the impacts to the lease and the surrounding area are minimal.
Michael Binnion, President and Chief Executive Officer, commented, "We are relieved that this incident was contained and restored with no lost time incidents and minimal environmental damage. We expect the well test will be impacted to some extent by the heavy weight fluids used to control the well pressures. We look forward to the well test data and we are very pleased to have preserved the well as a producer."
Questerre has begun discussions with a midstream company to tie-in this well to an adjacent third party processing plant. Work will commence after spring break-up. The Company also confirmed that its insurers have accepted its claim for the costs associated with the control of well and subsequent operations under its control of well insurance coverage.
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 timing of testing for the 15-01 well and the anticipated test results. 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.