Questerre Energy Corporation: Beaver River A-5 Shale Gas Well On-Stream
00:15 EST Friday, December 19, 2008
CALGARY, ALBERTA--(Marketwire - Dec. 19, 2008) -
NOT FOR DISTRIBUTION ON U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Questerre Energy Corporation (TSX:QEC)(OSLO:QEC) ("Questerre" or the "Company") reported today that the A-5 shale gas well began a long-term production test at the Beaver River Field in British Columbia.
Michael Binnion, President and Chief Executive Officer of Questerre, commented, "This well was an unexpected success and we look forward to long-term production results to confirm the viability of shale production. The existing infrastructure puts us in the enviable position of making positive cash flow from an early-stage shale pilot project."
The tie-in of this well was completed in late November following receipt of regulatory approval. Current production is at a facility constrained rate of 5.0 mmcf/d (833 boe/d) with an initial flowing tubing pressure of 25 mpa (3700 psi). Overall production increases at Beaver River will likely be limited as the existing shale wells, A-2 and A-7, produce at a significantly lower flowing pressure and short-term production declines from A-5 are expected.
A-5 is currently producing from a carbonate-rich sequence in the shale zones at Beaver River. Questerre believes this sequence could provide a pathway for gas from a deeper organic-rich shale interval. Based on final results, Questerre will evaluate two additional re-completion candidates to further pilot test this new shale play. Questerre and its partner hold a joint interest in over 23,000 acres prospective for this play.
With regard to recent announcements by its partner regarding their financial situation, the Company believes the ongoing production and resulting revenue from Beaver River will be sufficient to repay any outstanding amounts and finance their ongoing obligations under the operating agreement which are secured by an operator's lien.
Questerre is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development 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.
Barrel of oil equivalent ("boe") amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil and is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead.
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