Questerre Energy Corporation reported on the upcoming drilling program at Kakwa North.
The Company plans to participate in three (1.5 net) wells proposed by the operator at an estimated cost of $21 million net to Questerre. Subject to equipment availability, the wells are scheduled to spud early in the fourth quarter. Completion operations are planned for the first quarter of next year. Questerre holds a 50% interest in these wells.
Questerre also reported that the three (0.75 net) new wells on its Kakwa Central acreage were tied in earlier last month. Gross production from these wells over the last month is approximately 2,755 boe/d consisting of 6.8 MMcf/d of natural gas and 1,625 bbl/d of condensate and natural gas liquids. The Company holds a 25% interest in these wells. While the initial rates are encouraging, they are not indicative of the long-term performance or ultimate recovery.
Michael Binnion, President and Chief Executive Officer of Questerre, commented, 鈥淎s we continue to develop the Kakwa area, we are looking forward to the new wells at Kakwa North. With success, we could see our production grow in the second half of next year. Additionally, one of these wells will test a deeper interval in the Montney formation for future development opportunities. As oil prices remain volatile, we are focused on ensuring our drilling program is well funded by our existing cash and cash flow.鈥�
Questerre also reported that it has filed with the Qu茅bec Superior Court (Civil Division) (the 鈥淐ourt鈥�) an independent expert report (the 鈥淩eport鈥�) that quantifies the economic losses that may be incurred by the Company should its licenses to explore for oil and gas be successfully revoked by the Government of Qu茅bec (鈥淕oQ鈥�).
The independent expert was retained by the Company鈥檚 litigation counsel on behalf of the Company to prepare the Report. The Report was prepared in connection with the legal action to assist the Court. It is solely for use by Questerre in the legal action. The Report was prepared in accordance with the Canadian Institute of Chartered Business Valuators (鈥淐ICBV鈥�) requirements for both a Comprehensive Valuation Report and an Expert Report as defined in the CICBV Practice Standards. Based on the scope, and subject to the restrictions, qualifications, and major assumptions, under various scenarios, all of which are set forth in the Report, potential economic losses range from approximately $700 million to $4,800 million. The Report must be considered as a whole to avoid creating a misleading view. The Report has been filed on SEDAR+ and the NewsPoint service of Oslo B酶rs. The Report, nor any part thereof, does not form part of nor is deemed to be incorporated by reference in this news release.
Questerre notes that there is no guarantee that it will be successful in respect of its legal action against the Attorney General of Qu茅bec, the Minister of Economy, Innovation and Energy and the GoQ which is currently before the Court or that, even if successful, there is no guarantee as to the amount of damages that Questerre may recover, if any. There are no guarantees that the amounts set out in any of the scenarios of the Report will be accepted by the Court, and such amounts may be materially different than the amounts ultimately awarded to and actually recovered by Questerre, if any. Please see 鈥淎dvisory Regarding Forward-Looking Statements鈥� below.
Questerre is an energy technology and innovation company. It is leveraging its expertise gained through early exposure to low permeability reservoirs to acquire significant high-quality resources. We believe we can successfully transition our energy portfolio. With new clean technologies and innovation to responsibly produce and use energy, we can sustain both human progress and our natural environment.
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.29dk2902l