Questerre reports first quarter 2021 results

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CALGARY, Alberta, May 11, 2021 (GLOBE NEWSWIRE) -- Questerre Energy Corporation (“Questerre” or the “Company”) (TSX,OSE:QEC) reported today on its financial and operating results for the first quarter ended March 31, 2021.

Michael Binnion, President and Chief Executive Officer, commented, “We started to add zero emissions hydrogen and carbon capture and storage to our Clean Tech Energy project in the quarter. We are also evaluating other carbon recycling technologies that use carbon dioxide as a feedstock to make valuable products. These are essential to the new circular economy where virtually all the emissions from production and consumption are eliminated. Recent commitments by the US and Canada to cut emissions by half in the next decade need new technologies to achieve them. The success of our net zero project could be the quickest path to contributing to these climate goals and more importantly to acceptability in Quebec.”

He added, “We also saw an increase in M&A activity at Kakwa early this year. In March, the largest operator merged with another Montney producer in a $8.1 billion transaction, including net debt. In April, the operator of our Kakwa North acreage was acquired by a mid-sized company for $300 million. We are looking forward to their development plans for this acreage.”

Highlights

• Commissioned CIRAIG to study zero emissions hydrogen production from Clean Gas
• Executed Letter of Intent with ZEG Power to incorporate blue hydrogen into Clean Tech Energy project
• Average daily production of 1,679 boe/d with adjusted funds flow from operations of $2.9 million

Consistent with prior periods, Kakwa continued to account for approximately 80% of corporate production. During the first quarter of 2021, daily production averaged 1,679 boe/d (2020: 2,078 boe/d)⁽¹⁾. Improving commodity prices offset the production declines and petroleum and natural gas revenue totaled $7.0 million in the period, unchanged from the same period last year. The Company generated net income of $0.9 million for quarter (2020: $113.9 million loss) and adjusted funds flow from operations of $2.9 million (2020: $2.5 million).