Investor Relations Contact Information
Questerre Energy Corporation
St. Lawrence LowlandsThe St. Lawrence Lowlands are situated south of the St. Lawrence River between Montréal and Québec City. The exploration potential of the Lowlands is complemented by proximity to one of the largest natural gas markets in North America and a well-established distribution network.
The area is prospective for natural gas in several horizons with the primary target being the Utica shale. Secondary targets include the shallower Lorraine shale and the deeper Trenton Black-River carbonate. The majority of Questerre's one million gross acres lies in the heart of the fairway between two major geological features - Logan's Line, a subsurface thrust fault to the east and the Yamaska growth fault to the west.
Following a successful vertical test well program in 2008 and 2009, Questerre and its partner, Talisman Energy Inc. ("Talisman") began a pilot horizontal well program to assess commerciality of the Utica shale in 2010. The initial results from the first two wells, St. Edouard and Gentilly, drilled in different parts of the fairway met or exceeded management's expectations. Two additional horizontal wells, Fortierville and St. Gertrude were also drilled and are awaiting completion.
Based on the preliminary results of the pilot program, Questerre commissioned an independent resource assessment of the Utica shale. Using a range of recovery factors based on more established shale plays, as at December 31, 2010, the prospective resources recoverable for Questerre's net interest is expected to range between 1.46 Tcf and 15.45 Tcf with a best estimate of 4.43 Tcf.
In 2011, the pilot program to assess the commerciality of the Utica shale was suspended while the government initiated a strategic environmental assessment to assess the impacts of shale gas development in the province. The assessment is scheduled to be completed in late 2013.
Questerre's efforts since the announcement of the assessment have focused on securing its social license to operate and develop its discovery in Quebec. This has included supporting the Oil and Gas Services Association of Quebec ("OGSAQ") which promotes the local benefits of developing an oil and gas service sector in the province.During the summer of 2012, with OGSAQ, Questerre helped sponsor a delegation of Quebec farmers to Alberta to learn how resource development can benefit all stakeholders.
Questerre expects that any further operations, including the completion of the Fortierville and St. Gertrude horizontal wells, may only be conducted after the oversight committee for the assessment has published its final report in November 2013.