CALGARY, ALBERTA–(Marketwired – June 30, 2014) – Questerre Energy Corporation (“Questerre” or the “Company”) (TSX:QEC)(OSLO:QEC) reported today that its credit facilities with a Canadian chartered bank have been increased from $26.5 million to $50 million. The facilities are currently undrawn by the Company.
Michael Binnion, President and Chief Executive Officer, commented, “These facilities give us the capital and financial flexibility to execute our Montney development plan. It complements our existing cash position and the cash flow we expect over the second half of the year to fund our capital program till next spring. We believe these facilities will expand further as we convert our condensate-rich resources into producing reserves.”
The credit facilities include a revolving operating demand loan and a non-revolving acquisition/development demand loan. Any borrowings under the facilities, with the exception of letters of credit, bear interest at the bank’s prime interest rate and applicable basis point margins based on the ratio of debt to cash flow measured quarterly. The bank’s current prime rate is 3% per annum. The facility is secured by a revolving credit agreement, a $50 million debenture with a first floating charge over all assets of the Company and a general assignment of books debts.
Questerre 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.
Questerre Energy Corporation
Anela Dido, Investor Relations
(403) 777-1578 (FAX)