CALGARY, Alberta, April 06, 2018 (GLOBE NEWSWIRE) — Questerre Energy Corporation (“Questerre” or the “Company”) (TSX:QEC) (OSE:QEC) reported on the progress of the internal feasibility study for its oil shale project in Jordan.
The Company has recently engaged Hatch Ltd. (“Hatch”), a global engineering firm, to integrate and support its internal work on the technical and economic feasibility of this project.
Michael Binnion, President and Chief Executive Officer, commented, “This is an important milestone. Our preliminary feasibility work has been completed. It has not identified any red flags or unexpected technical challenges. It also suggests this project could be economic at today’s oil prices. We are looking forward to the results of the Hatch integration study later this summer to endorse our internal work.”
Commenting on next steps Mr. Binnion added, “Depending on the results of this integration study, we would move to pre-FEED engineering. These results and the subsequent pre-FEED and FEED engineering will form part of the proposed work program for the pre-development phase of a future concession agreement with the Jordanian government.”
Earlier this year, the Company completed a review of the last of its nine studies covering all four aspects of the production of crude oil from its project in Jordan. These include mining and feed preparation, retorting, power, including utilities and infrastructure, and marketing and refining. The studies were completed by independent engineering firms including Hatch to develop technical and cost-effective solutions for these processes. Due to the size of the existing Jordanian refining infrastructure and the market for crude products in Jordan, the Company has included the costs to upgrade the produced crude oil to finished products including gasoline and diesel. Hatch completed four of the nine studies and will integrate all the studies into an independent assessment. The design basis for this assessment will be an initial project capable of sustaining production of 50,000 bbls/d.
The feasibility study follows the assessment of the oil shale resource completed by an independent qualified resource evaluator, Millcreek Mining Group, in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators (“NI 51-101”) and the Canadian Oil and Gas Evaluation Handbook (“COGE Handbook”) (the “Resource Assessment”). The Resource Assessment estimates a best estimate of Discovered Petroleum Initially In Place (“DPIIP”) of between 7.8 billion and 12.2 billion barrels. The Resource Assessment was prepared in accordance with NI 51-101 and the COGE Handbook with an effective date of October 1, 2016.
DPIIP was the most specific assignable category of resources at the time of the Resource Assessment given the preliminary nature of the Resource Assessment, the nature of recovery of the hydrocarbons by means of mining and retorting and that a program of work to determine commercial viability using established technology had not yet been completed. In addition, as a result of the preliminary nature of the Resource Assessment, it did not contain any estimates regarding the timing or cost to obtain commercial development. The accuracy of resource estimates is, in part, a function of the quality and quantity of available data and of engineering and geological interpretation and judgment. Given the data available at the time the Resource Assessment was prepared, the estimates presented therein are considered reasonable. The availability of additional data and analysis, after the date of the estimates, may necessitate revisions. These revisions may be material. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
For more information, including without limitation a description of the Jordan oil shale project, the low and high estimates and the significant positive and negative factors in respect of the resource estimates, please see the Company’s press release dated October 27, 2016 and its Annual Information Forms available on the Company’s website at www.questerre.com and SEDAR at www.sedar.com.
Hatch Ltd. is a leading global consulting, engineering, technology, information systems and project management organization. Hatch has an extensive and major client base with a project portfolio exceeding C$40 billion. Hatch provides a full range of technology driven, valued added solutions and services to clients in the mining, minerals, metals, manufacturing, infrastructure and energy sectors.
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. It is pursuing oil shale projects with the aim of commercially developing these significant resources.
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.