CALGARY, ALBERTA–(Marketwired – Jan. 20, 2014) – Questerre Energy Corporation (“Questerre” or the “Company”) (TSX:QEC)(OSLO:QEC) is pleased to report that commissioning has been completed for the joint venture central compression and condensate stabilization facility located at 16-07-63-5W6M (“16-07 Facility”) in the Kakwa-Resthaven area. Questerre has a 25% working interest in this facility.
Michael Binnion, President and Chief Executive Officer of Questerre, commented, “This facility will be critical in reducing the high back pressure in the pipeline. As a result, we expect it will enhance production performance from the wells. We are pleased the operator was able to construct and commission this plant within the expected timelines.”
The 16-07 Facility was constructed in late 2013 and commissioned over the last thirty days. It will address the high line pressures associated with delivering natural gas and liquids from the joint venture wells to a third party processing plant. It will also stabilize wellhead condensate from the wells prior to transportation to the sales pipeline. The 16-07 Facility has been successfully tested at up to 14 MMcf/d of natural gas and associated condensate with design rates for 15 MMcf/d of natural gas and 3,000 bbl/d of condensate. Currently four joint venture wells, the 13-17 Well, the 14-30 Well, the 03-19 Well and the 05-23 Well are producing through the 16-07 Facility at flush rates of up to 8 MMcf/d of natural gas and 1,200 bbl/d of condensate. The operator anticipates that additional wells will be tied-in and placed on production through the 16-07 Facility shortly.
The operator recently updated the status of current and future joint venture wells. It reported that completion and initial flow-back has been finalized on the 16-25-63-5W6M well (“16-25 Well”). During a short production test, the 16-25 Well demonstrated initial deliverability and condensate yields similar to the previously drilled wells on the joint venture acreage. The Company notes that initial production rates are not indicative of long term performance or ultimate recovery. Questerre has a 25% working interest in this well.
Drilling operations were recently completed on the 16-17-63-5W6M well (“16-17 Well”) to a total measured depth of 5191m. Drilled from the same surface location as the 13-17 Well, drilling was completed on schedule and budget in 42 days from spud to rig release. Completion operations are now underway. Subject to results, the 16-17 Well should be tied-in and commence production in mid-February. Questerre has a 25% working interest in this well.
The operator further reported that drilling is underway at the 15- 30 -63-5W6M well (“15-30 Well”), the first of two wells to be drilled from the 3- 30 -63-5W6M surface location. The 15-30 Well was spud on December 31, 2013 and is expected to take approximately 45 days to reach total depth. The next well to be spud from this location, the 02/14-30 Well, will target a prospective interval in the Upper Montney. Once drilling is finalized on the 02/14-30 Well, the operator plans to complete both wells by April 2014 and have them tied-in and on production the following month. Questerre will hold a 25% interest in these wells.
The joint venture is currently permitting a new multi-well pad at 07-19 and plans to drill two 1.5 mile long horizontal wells between March and July 2014. Subject to equipment availability and weather, the joint venture intends to complete both wells once drilling has been finished on the second 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 news release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States or to or for the account or benefit of US persons (as such terms are defined in Regulation S under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”)), absent registration or an exemption from registration. The securities offered have not been and will not be registered under the U.S. Securities Act or any state securities laws and, therefore, may not be offered for sale in the United States, except in transactions exempt from registration under the U.S. Securities Act and applicable state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
Barrel of oil equivalent (“boe”) 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.
Questerre Energy Corporation
(403) 777-1578 (FAX)