Calgary, Alberta - Questerre Energy Corporation ("Questerre" or the "Company") announced today its financial and operating results for the third quarter of 2006.
Highlights
· Talisman committed to drill an exploration well on Questerre’s acreage in Quebec
· First well in Mattson development program spud at Beaver River Field
· Installation of central battery and gas compressor station completed in Vulcan
· Participated in the drilling of 5 (2.7 net) wells with an 80% success rate
· Daily production averaged 1,037 boe, up 63% from 635 boe in the second quarter
· Positive cash flow from operations of $1.68 million, up from $1.08 million in the second quarter
Michael Binnion, President and Chief Executive Officer, reported, “We saw marked progress on our entire portfolio in the third quarter of this year. Partners committed to test our exploration ideas at both high impact projects – Talisman elected to drill the first exploration well on our acreage in Quebec and Transeuro spud the first in a multi-well program at Beaver River. We continued to develop our conventional asset base with delineation drilling of our oil and gas pools and the installation of a central battery and gas compressor in Vulcan. At Westlock, we commenced operations for a 3-D seismic survey to firm up our proposed drilling locations this winter.”
For the quarter ended September 30, 2006, Questerre reported petroleum and natural gas revenue of $3.97 million, an 84% increase from $2.16 million in the second quarter of 2006 and a 1,043% increase from $0.35 million in the third quarter of 2005. This reflects the increase in average daily production during the quarter to 1,037 boe per day up from 635 boe per day during the second quarter of 2006 and 95 boe per day during the third quarter of 2005.
Cash flow from operations for the quarter ended September 30, 2006 grew to $1.68 million from $1.08 million in the second quarter of 2006. Year to date, the Company generated $3.06 million in cash flow as compared to $0.06 million in 2005. The Company’s working capital position at the end of the quarter was $8.84 million (2005: $12.18 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