Calgary, Alberta - Questerre Energy Corporation ("Questerre" or the "Company") (TSX, OSE: QEC) and Gastem Inc. (“Gastem”) (TSX-V: GMR) are pleased to announce they have entered into a letter of intent for their jointly held permits in the Yamaska area of the St. Lawrence Lowlands, Quebec.
Pursuant to the letter of intent, Gastem will commit to spend a minimum of $3 million and a maximum of $13 million on the Yamaska permits. Gastem will earn the 50% working interest currently held by Questerre in these permits subject to a 7.5% convertible gross overriding royalty (“GORR”) payable to Questerre. The GORR is convertible into a 20% working interest. Gastem may work with additional partners to fulfill its spending commitments under the letter of intent. With respect to this, Gastem has announced a letter of agreement with a major US independent.
Under the minimum work program, Gastem estimates that it will drill at least two wells to test the Utica shales on the Yamaska permits. Gastem expects to spud the first well this spring.
Questerre and Gastem have outlined an area of mutual interest (“AMI”) within the St. Lawrence Lowlands. Each party will offer 20% of any new projects in the AMI to the other party. Gastem will also hold a right of first refusal on existing acreage held by Questerre in the St. Lawrence Lowlands. Questerre and Gastem are currently finalizing the definitive agreements with respect to the letter of intent.
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