CALGARY, Feb. 29, 2016 /CNW/ – “Questerre Energy Corporation“>Questerre Energy Corporation (“Questerre” or the “Company”) (TSX,OSE:QEC) reported today on its fourth quarter 2015 results and preliminary financial and operating results for the year ended December 31, 2015. The Company also reported certain results of its December 31, 2015 Reserves Assessment and Evaluation of its oil and natural gas properties, as evaluated by McDaniel & Associates with an effective date of December 31, 2015, prepared in accordance with the COGE Handbook (the “Report”).
Michael Binnion, President and Chief Executive Officer, commented, “Despite challenging commodity prices in 2015, we had a positive year for production. Our Montney project moved forward with the expansion of the joint venture facility to 30 MMcf/d plus liquids. We drilled extended-reach horizontal wells that benefitted from improved completion techniques. This increased our average daily production for the year to 1,582 boe/d from 1,076 boe/d in 2014.”
He added, “In 2016, we plan to maintain our successes of last year. Our most recent horizontal well has been drilled with a lateral of approximately 2900m and we continue to optimize completions. Subject to results and commodity prices, we plan to selectively drill additional wells on our joint venture acreage this year.”
2015 Highlights
- Kakwa development continued with expansion of joint venture facility and extended-reach horizontals with improved completions
- Rationalized oil shale portfolio with new MOU for acreage in Jordan and terminated agreement for Wyoming acreage
- Corporate total proved plus probable reserves of 12.9 MMboe with a before income tax NPV-10% of $119.34 million
- Cash flow from operations of $9.78 million with average daily production of 1,582 boe/d for the year
Commenting on the Company’s oil shale assets, he noted, “We high graded our oil shale portfolio during the year. With the delay by Red Leaf to construct their commercial scale capsule, we surrendered our Wyoming project. We were successful in concluding an MOU for an oil shale project in Jordan with significant potential.”
He further added, “Corporate total proved plus probable reserves at December 31, 2015 were 12.91 MMboe with a before income tax NPV-10 of $119.34 million. The majority of these reserves, or 11.16 MMboe with a before income tax NPV-10 of $77.64 million, are for our Montney assets. This compares to corporate reserves of 13.89 MMboe with a before income tax NPV-10 of $231.63 million as at December 31, 2014 and reserves for the Montney assets of 11.92 MMboe with a before income tax NPV-10 of $175.42 million.”
For the year ended December 31, 2015, the Company reported cash flow from operations of $9.78 million (2014: $14.89 million) and $2.27 million for the fourth quarter (2014: $4.16 million). Production averaged 1,582 boe/d for the year (2014: 1,076 boe/d) with a 58% oil and liquids weighting (2014: 70%) and 1,648 boe/d for the fourth quarter (2014: 1,468 boe/d). As at December 31, 2015, the Company reported a working capital deficit of $21.48 million (2014: $9.25 million).
For the year ended December 31, 2015, the Company reported a net loss of $73.53 million (2014: $36.74 million). The loss for 2015 includes an impairment charge of $69.62 million (2014: $47.63 million) reflecting write-downs in the value of its investment in Red Leaf and impairments in the carrying value of its producing assets and exploration and evaluation assets due to, among other factors, current commodity prices.
In accordance with the requirements of National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators, the Company anticipates filing its Annual Information Form that includes more detailed disclosure relating to petroleum and natural gas activities for the 2015 fiscal year at the end of March 2016 as set out in the Report.
SUMMARY OF OIL AND GAS RESERVES |
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FORECAST PRICES AND COSTS |
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LIGHT AND |
SHALE
|
NATURAL GAS |
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RESERVES CATEGORY |
Gross (Mbbl) |
Net (Mbbl) |
Gross (MMcf) |
Net (MMcf) |
Gross (Mbbl) |
Net (Mbbl) |
||||||
Proved |
||||||||||||
Developed Producing |
847.3 |
803.8 |
5,011.7 |
4,648.8 |
809.1 |
604.9 |
||||||
Developed Non-Producing |
11.8 |
8.7 |
44.4 |
40.3 |
8.8 |
5.2 |
||||||
Undeveloped |
296.4 |
281.0 |
12,486.5 |
11,612.4 |
2,484.8 |
1,938.9 |
||||||
Total Proved |
1,155.5 |
1,093.4 |
17,542.5 |
16,301.5 |
3,302.7 |
2,549.0 |
||||||
Probable |
443.5 |
417.1 |
18,717.6 |
17,634.5 |
1,967.4 |
1,502.6 |
||||||
Total Proved Plus Probable |
1,599.0 |
1,510.6 |
36,260.2 |
33,936.1 |
5,270.2 |
4,051.5 |
SUMMARY NET PRESENT VALUES OF FUTURE NET REVENUE |
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FORECAST PRICES AND COSTS |
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BEFORE INCOME TAXES DISCOUNTED AT |
AFTER INCOME TAXES DISCOUNTED AT |
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RESERVES CATEGORY |
0% (M$) |
5% (M$) |
10% (M$) |
15% (M$) |
20% (M$) |
0% (M$) |
5% (M$) |
10% (M$) |
15% (M$) |
20% (M$) |
||||||||||
Proved |
||||||||||||||||||||
Developed Producing |
72,236.6 |
57,475.7 |
47,530.6 |
40,548.9 |
35,448.2 |
72,236.6 |
57,475.7 |
47,530.6 |
40,548.9 |
35,448.2 |
||||||||||
Developed Non‑Producing |
599.9 |
524.8 |
463.4 |
412.6 |
370.0 |
599.9 |
524.8 |
463.4 |
412.6 |
370.0 |
||||||||||
Undeveloped |
75,690.0 |
42,251.1 |
22,149.1 |
9,507.9 |
1,245.7 |
75,690.0 |
42,251.1 |
22,149.1 |
9,507.9 |
1,245.7 |
||||||||||
Total Proved |
148,526.5 |
100,251.6 |
70,143.1 |
50,469.4 |
37,063.9 |
148,526.5 |
100,251.6 |
70,143.1 |
50,469.4 |
37,063.9 |
||||||||||
Probable |
126,005.6 |
75,768.8 |
49,200.0 |
33,719.8 |
23,975.5 |
126,005.6 |
75,768.8 |
49,200.0 |
33,719.8 |
23,975.5 |
||||||||||
Total Proved Plus Probable |
274,532.1 |
176,020.4 |
119,343.1 |
84,189.1 |
61,039.4 |
274,532.1 |
176,020.4 |
119,343.1 |
84,189.1 |
61,039.4 |
SUMMARY OF PRICE FORECASTS |
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Year |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
2024 |
AECO Spot Price ($C/MMBtu) |
2.70 |
3.20 |
3.55 |
3.85 |
3.95 |
4.20 |
4.45 |
4.70 |
4.80 |
Edmonton Light Crude Oil ($C/bbl) |
56.60 |
66.40 |
72.80 |
80.90 |
83.20 |
88.20 |
93.30 |
98.70 |
100.70 |
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.