After the peak: Stocks after $135 oil

After the peak: Stocks after $135 oil

Wednesday, June 04, 2008
Since hitting a high of $135 (U.S.) a barrel on May 22, crude oil has slipped 8.5 per cent amid fretting about whether oil is a speculative bubble and whether U.S. consumption is about to slip. Curiously, though, energy-related equities have fared far better, though they have by no means traded as a homogeneous bloc.

The S[amp]amp;P/TSX energy index has fallen 3 per cent since oil hit its high, outperforming the underlying commodity by 5 percentage points. The S[amp]amp;P 500 energy index has fallen 4.1 per cent over the same period.

Part of the reason, for sure, is the fact that both energy indexes contain more than just oil producers. Any company engaged in natural gas exploration or development has performed relatively well, given that natural gas prices continue to rise, even as oil tumbles: gas prices are up 5.3 per cent since oil hit its May peak.

Within the S[amp]amp;P/TSX energy index, ShawCor Ltd., an energy services company, has performed the best, rising 10.5 per cent. TriCan Well Service Ltd. is up 8.4 per cent and Flint Energy Services Ltd. is up 8.1 per cent.

At the other end of the performance spectrum, Petrobank Energy [amp]amp; Resources Ltd., which had enjoyed a stunning rise of more than 100 per cent over the past 12 months, has fallen the most. It is down 10.5 per cent. Denison Mines Corp., a uranium producer, has fallen 9.1 per cent. InterOil Corp. has fallen 8.9 per cent, Suncor Energy Inc. has fallen 7.7 per cent and Connacher Oil [amp]amp; Gas Ltd. has fallen 7.6 per cent and Canadian Oil Sands Trust is down 7.5 per cent.

Meanwhile, many of the other more established names in the industry inhabit the middle ground in term of their performance. Nexen Inc. is down 4 per cent, Imperial Oil Ltd. is down 4.3 per cent, EnCana Corp. is down 4.4 per cent, Petro-Canada is down 5.3 per cent and Canadian Natural Resources Ltd. is down 6.2 per cent.
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Questerre Closes $35 Million Norwegian Private Placement

Questerre Closes $35 Million Norwegian Private Placement
23:30 EDT Tuesday, June 03, 2008

CALGARY, ALBERTA--(Marketwire - June 3, 2008) - Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSLO:QEC) reported today that it has closed the Norwegian tranche of its previously announced $75 million financing.
The total offering consisted of two tranches of 7,500,000 common shares to be completed in each of Norway and Canada. The Canadian tranche has an over-allotment option of 1,125,000 common shares.
A total of 7,500,000 common shares were issued at 23.80 NOK (C$4.70) per common share for gross proceeds of $35.25 million. The placement was more than five times oversubscribed and placed primarily with institutional investors. The Company appointed Pareto Securities AS and DnB NOR Markets ASA as its lead managers and SEB Enskilda as co-manager for the issue.
Subject to the filing and receipt of the final prospectus by the securities regulators in Canada, Questerre expects the Canadian tranche to close in early June.
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.
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
Jason D'Silva
VP Finance
(403) 777-1185
(403) 777-1578 (FAX)
Email: info@questerre.com
Website: www.questerre.com