CALGARY, ALBERTA--(Marketwired - May 14, 2013) -


Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC) (OSLO:QEC) reported today on its financial and operating results for the first quarter of 2013.

Michael Binnion, President and Chief Executive Officer, commented, "We built a meaningful land position for the liquids-rich Montney in the first quarter of 2013. Based on early well successes last year, we increased our operated acreage in the fairway and now hold 45 net sections. Our fourth well tested at approximately 1,800 boe/d. Recent land sales and industry activity continue to validate our decision to develop this as a new core area."


  • Doubled landholdings for liquids-rich Montney natural gas play in Alberta to 45 net sections
  • Fourth Montney well tests at gross rates of approximately 1,800 boe/d with over 45% condensate and natural gas liquids
  • Expanding pilot waterflood to increase recovery for light oil pool in Antler, Saskatchewan
  • Field constructability tests mostly complete for oil shale joint venture with Total S.A. and Red Leaf
  • Cash flow from operations of $3.65 million for the quarter with average daily production of 1,000 boe/d

Commenting on the Company's oil shale assets he added, "We are also very encouraged by the progress made by Red Leaf. They are transitioning from research and development to executing on the Early Production System phase of their oil shale joint venture in Utah with Total S.A. We conducted a site visit during the quarter and saw some of the in-field testing successfully completed. We also continued to assess our own oil shale acreage at Pasquia Hills. The core data from our program last fall is being analyzed and we expect to have the results this summer."

Production increased to 1,000 boe/d during the first quarter of 2013 from 725 boe/d in the prior year first quarter with the increase due to early production from the Kakwa-Resthaven area. With 78% of production from oil and natural gas liquids, Questerre reported cash flow from operations of $3.65 million (2012: $3.29 million). As spring breakup is underway, the Company expects that production in the second quarter will trend lower with several wells at Antler shut-in due to restricted road access and limited drilling planned for the period.

Questerre invested $25.96 million in its assets in the first quarter of 2013. $23.91 million was for the liquids-rich Montney in Alberta, with $19.11 million of this amount on land acquisition and the remainder drilling, completing and equipping wells in this area. Additionally, $1.35 million was invested in Saskatchewan, drilling one well and acquiring 3-D seismic as well as analyzing core for the oil shale at Pasquia Hills. As at March 31, 2013, the Company reported a working capital surplus of $12.84 million.

The Company also announced that it has adopted a Shareholder Rights Plan (the "Rights Plan") effective immediately. The Rights Plan must be ratified by shareholders at Questerre's next annual meeting in 2013, which is currently scheduled for June 11, 2013, failing which it will cease to have effect. Upon ratification by shareholders, the Rights Plan will continue in effect for an initial term of three years and is subject to reconfirmation by shareholders at the third annual meeting held after each confirmation.

The Rights Plan is designed both to encourage the fair and equal treatment of Questerre's shareholders in connection with any potential take-over bid and to ensure that its shareholders and its Board of Directors, in compliance with corporate and securities laws, have sufficient time to consider whether there are other options that would more effectively maximize shareholder value. The Rights Plan is not intended to deter take-over proposals. The terms of the Rights Plan are similar to those in rights plans recently approved by shareholders of other Canadian corporations. Questerre is not aware of any specific take-over bid for the Company in process or currently being contemplated.

The rights issued under the Rights Plan become exercisable when a person, together with any parties related to it, acquires or announces its intention to acquire, 20% or more of the Company's outstanding common shares without complying with the "Permitted Bid" provisions of the Rights Plan or without approval of Questerre's Board of Directors. Should such an acquisition occur each right would entitle a holder, other than the acquiring person or persons related to it, to purchase common shares of Questerre at a significant discount to the then current market price. A "Permitted Bid" is a bid made to all Questerre shareholders that is open for at least 60 days. If at the end of the 60 day period more than 50% of Questerre's then outstanding common shares, other than those common shares owned by the party making the bid and certain related persons, have been tendered to the bid, such party may take up and pay for the common shares but must extend the bid for a further 10 business days to allow other shareholders to tender.

The rights issued under the Rights Plan will initially attach to and trade with Questerre's common shares and no separate certificates will be issued unless an event triggering these rights occurs. A copy of the Rights Plan will be filed on SEDAR at

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. In conjunction with a supermajor, it is at the leading edge of commercializing a proven process to unlock the massive resource potential of oil shale.

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.

This media release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including the potential and future development of the Kakwa-Resthaven area, the investment in Red Leaf, the timing and development of the Company's oil shale assets in Pasquia Hills, Saskatchewan and the expected production for the second quarter of 2013. Although Questerre 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 Questerre. 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 information. As such, readers are cautioned not to place undue reliance on the forward looking information, 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 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, Questerre 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.

This press release contains the term "cash flow from operations", which is an additional IFRS measure and the terms "working capital surplus", and "netbacks" which are non-IFRS terms. Questerre uses these measures to help evaluate its performance.

As an indicator of Questerre's performance, cash flow from operations should not be considered as an alternative to, or more meaningful than, cash flows from operating activities as determined in accordance with IFRS. Questerre's determination of cash flow from operations may not be comparable to that reported by other companies. Questerre considers cash flow from operations to be a key measure as it demonstrates the Company's ability to generate the cash necessary to fund operations and support activities related to its major assets.

For the quarter ended March 31, 2013 2012
Net cash from operating activities $ 3,705,603 $ 740,800
Change in non-cash operating working capital (56,597 ) 2,550,354
Cash flows from operations $ 3,649,006 $ 3,291,154

The Company considers netbacks a key measure as it demonstrates its profitability relative to current commodity prices. Operating netbacks per boe equal total petroleum and natural gas revenue per boe adjusted for royalties per boe and operating expenses per boe.

The Company also uses the term "working capital surplus". Working capital surplus, as presented, does not have any standardized meaning prescribed by IFRS and may not be comparable with the calculation of similar measures for other entities. Working capital surplus, as used by the Company, is calculated as current assets less current liabilities excluding the current portions of the share based compensation liability and risk management contracts.

Contact Information:

Questerre Energy Corporation
Anela Dido
Investor Relations
(403) 777-1185
(403) 777-1578 (FAX)