Calgary, Alberta - Questerre Energy Corporation ("Questerre" or the "Company") (TSX, OSE: QEC) announced today its financial and operating results for 2006.
Highlights
§ Talisman, our partner, drilled a discovery well in the St. Lawrence Lowlands, Quebec
§ Appraisal drilling commenced for the Mattson/Besa River horizon at the Beaver River Field
§ Completed development drilling of gas pool in Vulcan
§ Established Westlock as a new core area
§ Exited 2006 with production over 1,600 boe/d and cash flow of $5.08 million for the year
§ Increased proved and probable reserves to 2.25 mmboe in 2006 from 0.9 mmboe in 2005
Michael Binnion, President and Chief Executive Officer, commented, “Our business plan to develop high-impact projects with partners and diversify risk through a conventional asset portfolio continued to gain traction. Our exploration ideas were tested with promising results. In Quebec, Talisman drilled Gentilly #1 that discovered natural gas in the Trenton Black-River formation. Evaluation of the Mattson/Besa River horizon at the Beaver River Field proceeded with the drilling of the A-7 well by our partner, Transeuro. The assets in Southern and Central Alberta grew through delineation drilling of our gas pool in Vulcan and the development of a new core area in Westlock. Growth in these assets is reflected in our financial and operating results. Production during the year averaged 778 boe/d with over 75% of this production from Alberta. The increased production saw Questerre generate over $5 million in cash flow from operations during the year.”
For the year ended December 31, 2006, the Company reported cash flow from operations of $5.08 million as compared to $0.004 million for the same period in 2005. As at December 31, 2006, the Company reported a working capital surplus of $22.70 million as compared to a surplus of $9.80 million as at December 31, 2005.
2007 Objectives
§ Participate in additional seismic/drilling in the St. Lawrence Lowlands with Talisman
§ Spud a new Nahanni well at the Beaver River Field
§ Evaluation of the Mattson/Besa River formation based on A-2, A-7 and B-3
§ Develop a new core area
§ Base exit production of over 2,200 boe/d
The Company also reported that it has filed its renewal Annual Information Form (“AIF”), audited consolidated financial statements and related Management Discussion and Analysis for the year ended December 31, 2006 with the Canadian securities regulatory authorities on SEDAR. This information may be accessed electronically at www.sedar.com.
The AIF includes the disclosure and reports relating to petroleum and natural gas reserves data and other disclosures for petroleum and natural gas activities required pursuant to National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators.
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