CALGARY, Alberta, Nov. 10, 2021 (GLOBE NEWSWIRE) — Questerre Energy Corporation (“Questerre” or the “Company”) (TSX,OSE:QEC) reported today on its financial and operating results for the third quarter ended September 30, 2021.
Michael Binnion, President and Chief Executive Officer, commented, “The Quebec Premier’s announcement of plans to ban oil and gas extraction was very disappointing. This is particularly true for our shareholders, especially from Norway, that believed in the potential of natural gas in Quebec and financed the discovery over the last decade. He has been clear there will be financial compensation though it can never fully compensate us for the size of our giant discovery.”
He added, “While we strongly believe our project is very beneficial to public utility, reconciliation, the global environment, and the economic well-being of Quebecers, we still respect the prerogative of the Government to decide on their behalf. We will do our upmost to cooperate within our fiduciary duties.”
- Quebec Premier announces plans to renounce oil and gas extraction
- Submitted application for carbon storage test in Quebec
- Wolinak of Abenaki First Nation in Quebec executes letter of interest for Clean Gas project
- Average daily production of 1,363 boe/d and adjusted funds flow from operations of $3.6 million in the quarter
Consistent with prior periods, Kakwa continued to account for 80% of corporate production. With no drilling at Kakwa since early last year, production declined over the prior year. For the third quarter, daily production averaged 1,363 boe/d (2020: 1,875 boe/d) and for the nine months ended September 30, 2021, it averaged 1,507 boe/d (2020: 2,004 boe/d).
Higher commodity prices over the same period last year improved revenue and adjusted funds flow from operations in 2021. For the third quarter, petroleum and natural gas sales increased to $7.4 million from $5.4 million last year and $21.5 million year to date from $15.8 million in the prior year. The higher revenue contributed to adjusted funds flow from operations of $3.6 million (2020: $1.6 million) in the quarter and $10.7 million for the nine months ended September 30 (2020: $4.3 million).(1)
The higher revenue also contributed to net income of $2.0 million for the third quarter (2020: $1.0 million loss) and $5.8 million (2020: $117.5 million loss) for the nine months ended September 30. In the prior year, the year-to-date loss reflects the impairment expense of $113 million incurred in the first quarter largely because of the lower future oil prices. Capital expenditures in the quarter were $0.5 million (2020: $0.4 million) and $1.5 million year to date (2020: $3.7 million). The Company posted a working capital surplus of $1.7 million at September 30, 2021 (2020: $8.1 million deficit).
The term “adjusted funds flow from operations” and “working capital surplus (deficit)” are non-IFRS measures. 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.