Questerre reports second quarter 2022 results

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CALGARY, Alberta, Aug. 10, 2022 (GLOBE NEWSWIRE) -- Questerre Energy Corporation (“Questerre” or the “Company”) (TSX,OSE:QEC) reported today on its financial and operating results for the second quarter ended June 30, 2022.

Michael Binnion, President, and Chief Executive Officer, commented, “During the quarter, three new Kakwa wells were brought on production. Leveraging the strong commodity prices, we recorded adjusted funds flow from operations of over $12 million for the period.”

Commenting on Quebec, he added, “Protecting our legal rights is our top priority after the Government of Quebec announced its plans to enact Bill 21 and revoke our licenses without meaningful compensation. We filed our primary claim in the Superior Court of Quebec this winter. Our litigation counsel recently engaged one of the Big 4 accounting firms as an expert witness to quantify our damages. Based on the value of the multi-Tcf discovery, we expect this claim will be substantially larger than the notional $100 million the Government has suggested as a settlement. We are also supporting other stakeholders including First Nations and Quebec royalty holders to ensure their rights are also protected against the Government’s actions.”

Reporting on the Company’s 40% investment in Red Leaf, he added, “They also made progress on their new technology with a successful third-party review completed early in the third quarter. The granting of the final permit for a short line railroad that terminates on their land is also very good news for Red Leaf and its refinery permit in the Uinta Basin in Utah.”

Highlights

• Average daily production of 1,909 boe/d⁽¹⁾ and adjusted funds flow from operations of $12.2 million for the quarter
• Government of Quebec announces plans to enact Bill 21 and revoke exploration licenses
• Red Leaf completes third-party engineering validation of new design

Consistent with prior periods, Kakwa continued to account for 80% of corporate production. With three (0.75 net) wells brought on production in the quarter, production increased materially over the prior year. For the second quarter, daily production averaged 1,909 boe/d (2021: 1,479 boe/d) and for the six months ended June 30, 2022, it averaged 1,600 boe/d (2021: 1,579 boe/d).