CALGARY, ALBERTA--(Marketwired - July 12, 2013) -
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 that drilling operations have commenced on the fifth well (the "05-23 well") targeting the liquids rich-Montney shale in the Kakwa-Resthaven area of Alberta. Questerre holds a 25% working interest in this well.
The well is programmed to drill vertically to a measured depth of approximately 3500m prior to drilling a 1425m horizontal leg into the target interval in the Montney formation. Drilling operations are expected to be completed by late September. Subject to completion equipment availability, stimulation and testing is planned shortly thereafter. Questerre expects to participate in the drilling of up to two additional (0.5 net) wells on this joint venture acreage for the remainder of 2013.
The 05-23 well will be drilled two miles southwest of the existing 03-19 and 14-30 wells that tested at rates of approximately 1,800 boe per day over the last 24 hours of their respective production tests. In its first two months of production in the second quarter, the operator reported the 14-30 well has been on production at rates between 2-4 MMcf/d with condensate yields averaging 180 Bbls/MMcf. The well has since been shut in to obtain pressure data. The operator also reported the 03-19 well was subsequently brought on production at an average rate of 3.5 MMcf/d with condensate rates of 166 Bbls/MMcf. Questerre holds a 25% interest in these wells.
The operator recently received regulatory approval for the joint central compression and condensate stabilization facility that will process volumes from these wells. The facility has a capacity of 15 MMcf/d plus associated liquids. The facility is designed to address the existing production constraints and is scheduled to be onstream prior to the end of 2013.
Questerre also updated the status of testing for the 15-01 well. Subject to receipt of regulatory approval for the testing program and equipment availability, flow-back and cleanup of the well is scheduled to begin at the end of the month.
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 statements regarding the potential and future development of the Kakwa-Resthaven area, including the drilling of additional wells and the installation of central processing facilities. Well test results disclosed in this press release are not necessarily indicative of long-term performance or ultimate recovery. 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 statements. 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 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, 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") and billion cubic feet equivalent ("Bcfe") 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 the conversion ratio of one barrel to six thousand cubic feet 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. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalent of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.