CALGARY, Alberta, May 11, 2021 (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, 2021.
Michael Binnion, President and Chief Executive Officer, commented, “We started to add zero emissions hydrogen and carbon capture and storage to our Clean Tech Energy project in the quarter. We are also evaluating other carbon recycling technologies that use carbon dioxide as a feedstock to make valuable products. These are essential to the new circular economy where virtually all the emissions from production and consumption are eliminated. Recent commitments by the US and Canada to cut emissions by half in the next decade need new technologies to achieve them. The success of our net zero project could be the quickest path to contributing to these climate goals and more importantly to acceptability in Quebec.”
He added, “We also saw an increase in M&A activity at Kakwa early this year. In March, the largest operator merged with another Montney producer in a $8.1 billion transaction, including net debt. In April, the operator of our Kakwa North acreage was acquired by a mid-sized company for $300 million. We are looking forward to their development plans for this acreage.”
- Commissioned CIRAIG to study zero emissions hydrogen production from Clean Gas
- Executed Letter of Intent with ZEG Power to incorporate blue hydrogen into Clean Tech Energy project
- Average daily production of 1,679 boe/d with adjusted funds flow from operations of $2.9 million
Consistent with prior periods, Kakwa continued to account for approximately 80% of corporate production. During the first quarter of 2021, daily production averaged 1,679 boe/d (2020: 2,078 boe/d)(1). Improving commodity prices offset the production declines and petroleum and natural gas revenue totaled $7.0 million in the period, unchanged from the same period last year. The Company generated net income of $0.9 million for quarter (2020: $113.9 million loss) and adjusted funds flow from operations of $2.9 million (2020: $2.5 million).
With a focus on prioritizing financial liquidity, the Company incurred capital expenditures of $0.5 million for the period (2020: $2.9 million) and reduced its net debt from $7.7 million to $5.4 million as of March 31, 2021.
The term “adjusted funds flow from operations” is a non-IFRS measure. Please see the reconciliation elsewhere in this press release.
Questerre is an energy technology and innovation company. It is leveraging its expertise gained through early exposure to low permeability reservoirs to acquire significant high-quality resources. We believe we can successfully transition our energy portfolio. With new clean technologies and innovation to responsibly produce and use energy, we can sustain both human progress and our natural environment.
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.