Michael Binnion, President and Chief Executive Officer of Questerre, commented, “Though it has not yet come into force, the National Assembly in Quebec passed Bill 21 banning oil and gas development in the province last month. We are still keen to work with the people of Quebec who have shown support for our Clean Gas project. The Government’s decision left us no choice but to take legal action to protect the rights of our shareholders. We have filed a statement of claim and we anticipate a pre-trial hearing could be held within the next few months.”
He added, “As we follow the legal process in Quebec, we have three priorities – continue development of Kakwa and Antler to capitalize on higher prices, assist Red Leaf in commercializing their EcoShale technology, ultimately for our project in Jordan, and evaluate opportunities to employ new carbon technologies.”
- Government of Quebec passes Bill 21 to ban oil and gas development in Quebec
- Three (0.75 net) wells completed at Kakwa Central and brought on stream in second quarter
- Current production over 2,000 boe/d with average daily production of 1,288 boe/d and adjusted funds flow from operations of $4.3 million for the quarter
With the completion and tie-in of three (0.75 net) wells at Kakwa Central, current production is over 2,000 boe/d(1). Production in first quarter averaged 1,288 boe/d (2021: 1,679 boe/d)(1) as no new wells were brought on production since the fall of 2020. Consistent with the industry at large, higher commodity prices more than offset the decline in production and petroleum and natural gas revenue totaled $9.6 million in the period compared to $7.0 million for the same period last year. The Company generated net income of $2.4 million for quarter (2021: $0.9 million) and adjusted funds flow from operations of $4.3 million (2021: $2.9 million).
The Company incurred capital expenditures of $4.9 million for the period (2021: $0.5 million) and reported a working capital surplus of $1.2 million as at March 31, 2022 (March 31, 2021: $5.4 million deficit).
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.