Calgary, Alberta - Questerre Energy Corporation ("Questerre" or the "Company") (TSX, OSE: QEC) and Transeuro Energy Corp. (“Transeuro”) (TSX-V:TSU) are pleased to announce that drilling operations have commenced on the B-36-K/94-N-16 (B-3) well at the Beaver River Field (the “Field”) in British Columbia.
Questerre is drilling the well in partnership with Transeuro and operations will be managed by a joint venture operating committee. Questerre will be the named operator for the B-3 well and both parties hold a 50% interest in this well.
The B-3 well is planned to target and delineate the Mattson/Besa River horizon in the southern part of the Field. The well will be located approximately six kilometres away from the A-2 well currently producing over 4.1 mmcf/d (700 boe/d). The well location is proximal to the B-1 well drilled by Amoco in the 1960s that initially flowed at 12 mmcf/d (2000 boe/d) on a drill stem test. Coupled with the A-7 appraisal well drilled in the northern part of the Field, the B-3 delineation well will provide new information on this horizon over both ends of the Field and will lead to a better understanding of the number and type of wells required to fully develop this resource play.
To capitalize on the existing services and equipment on location, operations are underway to drill and set intermediate casing at a depth of 1440m. Subject to weather and operating conditions, the well may be suspended during breakup with drilling of the main hole resuming in the summer.
The partners are currently evaluating drilling multiple directional legs from the intermediate casing into the Mattson/Besa River. Based on two legs, Questerre estimates the drilling and completion costs for each B-3 leg will average between $5-$6 million. Costs are expected to be less on a per well basis for a full development program.
Michael Binnion, President and Chief Executive Officer of Questerre, commented, “The Mattson/Besa River horizon represents a potentially large resource of over a tcf of natural gas in place. We look forward to the results of the A-7 and B-3 wells to give us a good assessment of the ultimate recoverable reserve potential of this play.”
The partners have also agreed to amend their existing farmin and operating agreement (the “Agreement”) as follows:
- Transeuro will be recognized as the participating party and Ampac Petroleum Inc. will be released from its obligations under the Agreement
- The requirement for a fourth re-entry to test the commerciality of this play will be dropped from the earning requirements as it is no longer necessary
- Transeuro will commit to a re-entry or new well to test the deeper Nahanni horizon and upon completion of this Nahanni well at their sole cost will earn a 50% interest in all the lands and infrastructure. Final earning on the Mattson/Besa River is contingent upon Transeuro fulfilling its commitment to drill the Nahanni well.
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