CALGARY, ALBERTA–(Marketwired – April 7, 2014) – Questerre Energy Corporation (“Questerre” or the “Company”) (TSX:QEC)(OSLO:QEC) is pleased to report on the test results from its seventh horizontal well at 02/14-30-63-5W6M (the “02/14-30 Well”) in the Kakwa-Resthaven area of west central Alberta.
The 02/14-30 Well is the first well on the joint venture acreage that has been completed in the D4 unit, an upper interval of the Montney formation.
The 02/14-30 Well was drilled to a total measured depth of 4563m with a horizontal leg of approximately 1100m or 200m-500m shorter than the previously drilled horizontal wells. The well was completed using a water-based nitrogen foam frac. Over the last 24 hours of a 119-hour test period, the well averaged 2.73 MMcf/d of natural gas and 621 bbls/d (227 bbls/MMcf) of condensate and was continuing to clean up completion fluids. No sour gas was observed during testing. The well was flowing up 4.5 inch casing and a 19.05 mm (3/4 inch) choke, against an estimated gathering system pressure of approximately 1800 kPa. Questerre has a 25% working interest in this well.
Michael Binnion, President and Chief Executive Officer of Questerre, commented, “The initial test rates from this upper interval, including the high condensate rates, are very positive. It opens up another Montney interval. They are consistent with the rates from the lower interval where all our previous wells have been completed. We are looking forward to developing this additional interval on our joint venture acreage as well as our operated acreage.”
Installation of production facilities as well as tie-in to the existing gathering system will begin shortly. The operator expects to have the well on production later in the second quarter.
The operator reported the initial tests rates from the 02/14-30 Well as it is the first result from a previously untested interval in the Montney formation. As previously reported, the operator expects to release further development drilling production results from this area based on the 30-day initial production rates. While the initial test rates from the 02/14-30 Well are very encouraging, the Company notes that they are not indicative of the long-term performance or the ultimate recovery from 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.
This media release contains certain statements which constitute forward-looking statements or information (“forward-looking statements”) including the potential for development of the upper Montney interval across the Company’s joint venture and operated acreage based on the results from the 02/14-30 Well. Although the initial rates from the 04/14-30 Well are very encouraging, production test results are not necessarily indicative of long-term performance or ultimate recovery from this well. 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, including the timing of pricing and terms of the placement, the placement results and closing, the use of net proceeds, the timing of receipt of required regulatory approvals and assumptions concerning the success of future drilling activities. 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.
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
Anela Dido, Investor Relations
(403) 777-1578 (FAX)