Calgary, Alberta - Questerre Energy Corporation (“Questerre” or the “Company”) (TSX, OSE:QEC) is pleased to report that gas production has commenced from its new pool discovery in the Vulcan area of Southern Alberta.
An analysis of the pressure information recently obtained after the testing of the 7-29 well indicates that the oil and gas pools are two separate pools. As a result, Questerre expects that both gas and oil production will proceed concurrently.
Three (1.5 net) wells in Vulcan have recently commenced production of gas and associated liquids at an initial combined rate of approximately 400 (200 net) boe per day. The Company’s fourth gas well has not yet been tied-in. Production from these three wells is currently constrained by the capacity of a third-party gas pipeline system and is subject to a best-efforts gas processing agreement. To alleviate the pipeline production constraint, the operator is completing a gas pipeline to a high-pressure gas gathering system to a second gas plant in the area. This second pipeline is expected to be operational by the end of June and additional gas and associated liquids production of approximately 600 to 800 (300 to 400 net) boe per day is expected to be able to flow against pipeline pressure at that time.
The operator also has entered into an agreement to purchase an existing gas plant located in northeast BC and plans to relocate the compression and dehydration components to Vulcan. This compression facility is expected to be operational in September and will allow the Company to deliver the balance of its behind-pipe production capability into the high-pressure Vulcan pipeline system.
Questerre also reported that the 16-20 well at Vulcan has been completed and is currently testing oil. This well is expected to commence a four-month production test in July, subject to installation of a single-well battery.
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