Questerre Announces Successful Shale Gas Test From Gentilly-Well in Quebec
00:15 EDT Wednesday, September 03, 2008
CALGARY, ALBERTA--(Marketwire - Sept. 3, 2008) -
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Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC) (OSLO:QEC) today announced interim results from the recompletion of it's Gentilly shale gas well in the St. Lawrence Lowlands of Quebec. The well flowed more than 800,000 cubic feet per day on a sustained basis. This was from one set of stimulated perforations in the Utica shale only.
The well, which is a re-entry to a previously drilled Trenton-Black River well, was tested in early August in the Utica formation. The well was subsequently tested for 18 days. At the shut-in point, the well was still cleaning up and pressures and flow rates were constant or slightly increasing. Approximately one-half of the fracture stimulation water has been recovered to date.
Questerre CEO Michael Binnion commented, "This is an excellent result for a vertical frac, especially given that only one set of perforations was stimulated." Mr. Binnion continued, "There is obviously a lot more work to do and it will take time for final results to come in; however, initial results continue to meet or exceed our expectations."
Based on the promising results of the tests, the project's joint venture partner Talisman Energy Inc. ("Talisman") agreed to add another frac to the testing program. This second fracture stimulation is now underway. Following an evaluation of the results of the second fracture stimulation, two additional fracs of the Lorraine shale will be conducted. Results of these Lorraine tests are expected in the fourth quarter.
The Lorraine shale sits on top of the Utica and can be up to 6,500 feet thick. The Utica shale ranges between 300 and 1,000 feet. Early indications show that both the Lorraine and Utica rocks are thick, porous and appear brittle and over pressured, all of which are conducive to artificial fracture stimulation.
Questerre and Talisman are considering an increase in the capital allocated to completing, testing and evaluating the well. The joint venture partners are also considering the possibility of accelerating or increasing the pilot program.
As the first company to acquire leases in this play, Questerre has secured a more than 830,000-acre (gross) position in the 'sweet spot' of the Utica Shale. Questerre also applies its shale gas expertise to shale gas properties in British Columbia.
About Questerre
Questerre is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact oil and gas projects in Canada.
This news release contains forward-looking information. Implicit in this information are assumptions regarding commodity pricing, production, royalties and expenses that, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in the Company's plans, commodity prices, equipment availability, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee made by the Company that the actual results achieved will be the same as those forecasted herein.
This news release does not constitute an offer of securities for sale in the United States. These securities may not be offered or sold in the United States absent registration or an available exemption from registration under the United States Securities Act of 1933, as amended.
FOR FURTHER INFORMATION PLEASE CONTACT:Questerre Energy Corporation
Anela Dido
Investor Relations
(403) 777-1185
(403) 777-1578 (FAX)
Email: info@questerre.com
Website: www.questerre.com