CALGARY, ALBERTA–(Marketwired – Sept. 30, 2013) –
NOT FOR DISTRIBUTION ON U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Questerre Energy Corporation“>Questerre Energy Corporation (“Questerre” or the “Company”) (TSX:QEC)(OSLO:QEC) reported today the results from its oil drilling program in Pierson, Manitoba adjacent to its existing production in Antler, Saskatchewan.
A five well program targeting the Spearfish formation was conducted by the operator early in the third quarter. The wells were drilled as short radius horizontals and completed with 16 stage fracs per well. They were drilled and completed on schedule and under budget. This follows the drilling of two successful wells in the fourth quarter of 2012. Questerre holds a 35% interest in all these wells.
Over the first three days, the five wells produced at gross rates of over 1,000 barrels of oil per day or 350 barrels per day net to Questerre’s interest. Production over the first thirty days is expected to be approximately 700 barrels per day or approximately 240 barrels net to Questerre. Including these wells, the Company’s production is currently in excess of 1,000 boe per day.
Michael Binnion, President and Chief Executive Officer commented, “We are very pleased with the initial performance of these oil wells. Our light oil netbacks were in excess of $85 per barrel in July. At current production rates our operating cash flow before overheads is now over $2 million per month.”
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 statements regarding the initial production from the wells drilled in Manitoba. Although the initial rates reported in the press release are very encouraging, they are not necessarily indicative of long term production performance. 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 statements. 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.
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.
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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