Questerre releases third quarter 2017 results

CALGARY, ALBERTA--(Marketwired - Nov. 10, 2017) -

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Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC) (OSLO:QEC) reported today on its financial and operating results for the third quarter ended September 30, 2017.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, "We are seeing the early results of our increased capital investment in Kakwa this year. Production from this area has almost doubled since the first quarter to 1,400 boe/d with four (0.92 net) wells brought on stream. Three (0.67 net) more wells will be completed in the fourth quarter. If we drill a similar number of wells next year, we could see another major increase in production by next December."

Highlights

• Kakwa joint venture development continues with additional drilling and completions
• Government of Quebec releases draft oil and gas regulations
• Red Leaf begins feasibility study for Jordan oil shale project
• Private placement for gross proceeds of $31 million fully subscribed and closed early in fourth quarter
• Average daily production of 1,643 boe/d for the quarter and adjusted funds flow from operations of $1.94 million

Commenting on Quebec, he noted, "The draft regulations released this quarter are another milestone towards developing our Utica shale discovery in Quebec. We expect to see the final regulations early next year after taking into account public comments. The regulations are workable but, in our opinion, can be improved to be more efficient and competitive. Recent government comments on the need for social acceptability are consistent with past comments from this government and industry. Social license is a somewhat nebulous concept but has more and more become a requirement in Western liberal democracies."

Updating developments on its oil shale assets, he further added, "The last tranche of our investment in Red Leaf closed during the quarter. The move to reusable capsules for their EcoShale process could be key to commercializing our multi-billion barrel oil shale resource in Jordan. This re-engineering has substantially reduced the estimated break-even price for their project to a range where Red Leaf believes it is economic at current prices. We are studying if it could do the same for our Jordan project."