Calgary, Alberta - Questerre Energy Corporation (“Questerre” or the “Company”) (TSX, OSE:QEC) announced today its financial and operating results for the second quarter of 2006.
Highlights
· Participated in the drilling of 6 (3.21 net) wells with an 83% success rate
· Accelerated Beaver River development plans with a proposed five-well program
· Commenced concurrent production of oil and gas in Vulcan
· Concluded farm-in agreement with Apache Canada Ltd. over 33 sections in Westlock
· Completed $10 million flow-through private placement at C$1.03 (5.78 NOK) per Share
· Exited the quarter with over 1,000 boe of production, triple our exit rate for the first quarter
· Positive cash flow from operations of over $1 million for the quarter, more than double the previous quarter
Michael Binnion, President and Chief Executive Officer, reported, “Following the positive developments in the first quarter, we saw noteworthy progress on all our key assets. At Beaver River, the encouraging results from the A-2 well have led to plans for a five-well development program for the Field to begin this fall. In Quebec, the seismic survey acquired this winter identified additional prospective horizons, prompting a new location to test all these horizons. Our conventional asset base saw further expansion through an oil development program in Vulcan and a major farm-in agreement in Westlock.”
For the quarter ended June 30, 2006, Questerre reported petroleum and natural gas revenue of $2.16 million, an 86% increase from $1.16 million in the first quarter of 2006 and a 242% increase from $0.63 million in the second quarter of 2005. This reflects the increase in average daily production during the quarter to 635 boe per day up from 292 boe per day during the first quarter of 2006 and 148 boe per day during the second quarter of 2005.
Cash flow from operations for the quarter ended June 30, 2006 grew to $1.08 million from $0.29 million in the first quarter of 2006. Year to date, the Company generated $1.38 million in cash flow as compared to $0.08 million in 2005. The Company’s working capital position at the end of the quarter was $13.09 million (2005: $6.5 million).
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