CALGARY, Alberta, May 10, 2019 (GLOBE NEWSWIRE) — Questerre Energy Corporation (“Questerre” or the “Company”) (TSX,OSE:QEC) reported today on its financial and operating results for the first quarter ended March 31, 2019.
Michael Binnion, President and Chief Executive Officer of Questerre, commented, “In the first quarter, we made good progress in Quebec through the agreement to regain operatorship and discussions with stakeholders on our Clean Tech Energy project. We also made progress on our Montney assets at Kakwa. The first two farm-in wells at Kakwa North were tied-in. Initial production from these wells with longer laterals and more intense completions compares favorably to our other joint venture wells. The operator also spud the third farm-in well and we anticipate one more well could spud this summer.”
He added, “Early in the second quarter, we closed an equity placement to improve our financial liquidity. This allows us to continue investing in Kakwa and increasing the investment as necessary. We are also in a much stronger financial position to advance our project in Quebec.”
- Executed agreement to acquire assets and regain operatorship in Quebec
- Working with stakeholders on social license for Clean Tech Energy project in Quebec
- Third farm-in well spud at Kakwa North
- Average daily production of 1,944 boe/d for the quarter with adjusted funds flow from operations of $2.45 million
With Kakwa accounting for over three quarters of corporate volumes, the capital investment in this area last year resulted in average daily production of 1,944 boe/d in the first quarter (2018: 2,013 boe/d). The lower oil and liquids prices in the first quarter of 2019 contributed to petroleum and natural gas revenue of $7.11 million compared to $9.54 million in the prior year. The Company generated adjusted funds flow from operations of $2.45 million for the first quarter of 2019 (2018: $4.65 million) and reported a net loss of $0.93 million for the period (2018: Net income of $0.06 million). Consistent with prior years, capital investment focused almost exclusively at Kakwa and totaled $2.85 million (2018: $8.66 million).
The term “adjusted funds flow from operations” is a non-IFRS measure. Please see the reconciliation elsewhere in this press release.
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 massive 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.