Questerre Energy

Mike's Blog

Jan
24

CQM up

Canadian Quantum's stock went up following their recent announcement of diversifying to Alberta. In 2008 Alberta unilaterally changed its agreements with industry and increased its royalties as part of the Royalty Review. In effect an expropriation without compensation Sadly, local companies who were committed to Alberta were the ones that were hurt the most; the larger companies simply moved their investment to projects in British Columbia and Saskatchewan where royalties were lower and more trusted. Alberta only recently reversed the impacts of its royalty expropriation and currently offers 5% royalties for the first three years on shale gas wells. Canadian Quantum is one of several companies trusting that Alberta won't do it again. As one of the few pure play companies focused primarily on Utica shale gas in Quebec it is interesting to see the market rewarding Quantum for diversification. Congratulations on a good move for your shareholders Quantum.

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