CALGARY, ALBERTA--(Marketwire - May 17, 2010) -
NOT FOR DISTRIBUTION ON U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSLO:QEC) reported today on its operating and financial results for the first quarter of 2010.
Michael Binnion, President and Chief Executive Officer of Questerre, commented, "The St. Edouard horizontal well results in the St. Lawrence Lowlands, Quebec, marked the beginning of a new chapter for Questerre."
Mr. Binnion added, "Our primary goal now is to continue derisking our significant discovered Utica shale gas resource. Over the next 12 months, subject to results, our goals are to add three to six additional results to the ongoing pilot program, acquire 3-D seismic, construct a 'first gas' pipeline and see passage of new hydrocarbon legislation."
Highlights
-- St. Edouard 1A horizontal well tested at an initial stabilized rate of approximately 6 MMcf/d from the Utica shale in the St. Lawrence Lowlands, Quebec -- Completed $128 million equity offering to primarily finance commercialization and early development of the Utica -- Positive cash flow from operations of $0.52 million and production of 600 boe/d with limited investment in developed assets -- Strengthened financial position with $166 million in positive working capital and no debt
Cash flow from operations for the first quarter of this year was $0.52 million as compared to $1.06 million in 2009. The results reflect the limited investment in developed assets in the prior year partially offset by materially higher oil prices.
Petroleum and natural gas revenue in the first quarter of 2010 was $2.98 million (2009: $3.72 million). Production averaged 600 boe/d (2009: 1,049 boe/d) with crude oil and liquids accounting for 49% of the volumes (2009: 44%). The Company reported a working capital surplus of $165.60 million at March 31, 2010 as compared to $51.76 million at March 31, 2009.
Questerre Energy Corporation is an independent energy company focused on shale gas in North America. The Company is concentrated on establishing commerciality of its Utica shale gas discovery in the St. Lawrence Lowlands, Quebec.
This news release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including the results from our horizontal wells, the estimated recovery of resources. Although the Company believes that the expectations reflected in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information available to the Company. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking statements. As such, readers are cautioned not to place undue reliance on the forward looking statements, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
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.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Questerre Energy Corporation Anela Dido Investor Relations (403) 777-1185 (403) 777-1578 (FAX) info@questerre.com
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