CALGARY, ALBERTA–(Marketwired – Feb. 5, 2015) – Questerre Energy Corporation (“Questerre” or the “Company”) (TSX:QEC)(OSLO:QEC) reported today that it has implemented a corporate restructuring plan to reduce its administrative overhead in the current commodity price environment.
As part of the restructuring program, the Board has elected to reduce head office personnel by 20% and implement a 10% reduction in salaries for senior management. Fees paid to Board members will also be reduced by 10%.
Michael Binnion, President and Chief Executive Officer of Questerre, commented, “We already restricted our capital program to approximately $12 million in 2015 to primarily complete and tie-in existing wells at Kakwa. This restructuring program aims to reduce our gross overhead of approximately $7 million by 20% this year.”
With activity suspended on its operated Kakwa acreage in 2015, the Company reported that its Chief Operating Officer, Frank Walsh, will be leaving at the end of the first quarter, to pursue other opportunities. Questerre would like to thank Mr. Walsh for his service over the last year. Effective April 1, 2015, Keith Wilford will assume the position of Chief Operating Officer in addition to his current duties as Vice President, Operations. Mr. Wilford has held this position with Questerre since September 2014. He is a seasoned engineer with over 30 years’ experience in applied engineering and field operations. Most recently he has provided drilling, completions, production, facility design and engineering support to a number of private and public companies on a consulting basis. Prior thereto from 2008 to 2012, he was President and Chief Executive Officer of Silverback Energy Ltd., a private exploration and production company. Mr. Wilford holds a Bachelor of Science in Mechanical Engineering from the University of Manitoba.
In connection with this restructuring program and as part of its annual option grant program, the Company has granted to directors, officers and employees a total of 5,796,250 options to acquire common shares at a price of $0.30 per common share. The options will expire on February 2, 2020.
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
(403) 777-1578 (FAX)