Calgary, Alberta - Questerre Energy Corporation (“Questerre” or the “Company”) (TSX, OSE:QEC) announced today its financial and operating results for 2005.
Highlights
- Farm-out agreement and commencement of operations at the Beaver River Field
- Farm-out agreement with Talisman in Quebec
- Drilled 17 (5.93 net) wells with an 88% success rate
- Achieved target of break-even cash flow from operations
- 466% increase in NPV-10 of our proved and probable reserves to $22.1 million
- 29% increase in NPV-10 of our proved, probable and possible reserves to $225 million
- 45% increase in our gross land base to 1.08 million acres
- Secondary listing on the Oslo Stock Exchange with combined trading volumes increasing from 71,000 shares per day to over 1.96 million shares per day
Michael Binnion, President and Chief Executive Officer, commented, “2005 was a stellar year for Questerre. We implemented our new business plan through farmout agreements for our major projects and the building of a portfolio of assets in Alberta. While our 2005 financial results do not yet reflect these successes, they exceed our expectations and goals for the year. We have seen these successes begin to be recognized in our reserve additions reported for 2005.”
As at December 31, 2005, the Company reported a working capital surplus of $9.80 million as compared to a surplus of $2.86 million as at December 31, 2004. The Company reported an improvement in cash flow from operations to $4,230 in 2005 from a loss of $1,297,280 in 2004. For the year ended December 31, 2005, Questerre reported a net loss of $3 million ($0.03 per share) as compared to net loss of $6.9 million ($0.14 per share) for the year ended December 31, 2004, after adjusting for the gain on the settlement of obligations.
Outlook for 2006
- Capital expenditure budget of $20 million
- Obtain results from our partner funded new well at the Beaver River Field
- See our partner Talisman drill our first high impact exploration well in Quebec
- Complete development drilling at our new Vulcan pool
- Establish Westlock as a new core area
- Have in excess of 1,500 boe per day of production on stream or behind pipe before the end of the year
The Company also reported that it has filed its renewal Annual Information Form (“AIF”), audited consolidated financial statements and related Management Discussion and Analysis for the year ended December 31, 2005 with the Canadian securities regulatory authorities on SEDAR. This information may be accessed electronically at www.sedar.com.
The AIF includes the disclosure and reports relating to petroleum and natural gas reserves data and other disclosures for petroleum and natural gas activities required pursuant to National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators.
Questerre Energy Corporation is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development oil and gas projects in Canada.
For further information, please contact:
Michael R. Binnion, President
Tel: (403) 777-1185
Fax: (403) 777-1578
Email: info@questerre.com
Web: www.questerre.com