Calgary, Alberta - Questerre Energy Corporation (“Questerre” or the “Company”) (TSX, OSE:QEC) announced today that it has completed its previously reported acquisition of a private exploration and production company with land and production in the Westlock area of Central Alberta.
The purchase price for this acquisition, net of any working capital adjustments, was $3 million in cash and 7,262,742 Common Shares of Questerre representing, on a proved plus probable reserve basis, $14.20 per barrel of oil equivalent (“boe”) in the ground and $40,750 per producing boe.
Michael Binnion, President and Chief Executive Officer, commented, “I am very pleased we were able to complete this acquisition. The acquired production and prospective exploration acreage complements our existing assets in Westlock. With several identified drilling locations, we plan a more active exploration and development program for this area in 2006.”
Questerre also reported that post closing this transaction, daily production is in excess of 500 boe per day. Based on this acquisition and the drilling opportunities it brings, the Company has increased its guidance to exit this year at 2,000 boe of production. The Company expects that as much as half of this target could remain behind pipe at year-end due to good production practice regulations and other delays in tying in production.
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