Questerre reports first quarter 2024 results

THIS NEWS RELEASE IS NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES OF AMERICA TO UNITED STATES NEWSWIRE SERVICES OR UNITED STATES PERSONS

CALGARY, Alberta, May 10, 2024 (GLOBE NEWSWIRE) -- Questerre Energy Corporation (“Questerre” or the “Company”) (TSX,OSE:QEC) reported today on its financial and operating results for the quarter ended March 31, 2024.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, “During the quarter, we applied for a pilot project under Bill 21 in Quebec. In addition to a comprehensive test of the carbon storage potential on our lands, we propose to pilot zero-emissions hydrogen production. Following the Government’s recent investment in the carbon capture and storage space, we are optimistic this could be an integral part of their strategy to meeting emissions reduction targets.

On the legal front, a pre-trial ruling on our legal claim suspended key provisions of Bill 21 pending a hearing on the merits of our case. The Government has since been granted leave to appeal the ruling.”

He added, “Carbon capture and storage is also important to our plans to build assets outside Quebec. We are exploring opportunities to develop zero-emissions projects using carbon storage with First Nations in Alberta.”

Highlights

• Quebec Superior Court grants stay on key provisions of Bill 21 and Government granted leave to appeal
• Questerre applies for carbon storage and zero-emissions hydrogen pilot in Quebec
• Average daily production of 1,664 boe per day with adjusted funds flow from operations of $3 million

Reflecting natural declines, production volumes decreased nominally in the first quarter of 2024 to 1,664 boe/d from 1,790 boe/d last year. Production volumes are expected to continue their natural decline until the three (0.75 net) wells drilled this year at Kakwa are completed and tied-in later this year. For the quarter, petroleum and natural gas revenue reflected lower production volumes and realized commodity prices and totaled $9.0 million in the period compared to $10.5 million last year. The Company generated a net loss of $0.2 million for the quarter (2023: $0.9 million net income) and adjusted funds flow from operations of $3.0 million compared to 4.3 million last year.