Calgary, Alberta - Questerre Energy Corporation ("Questerre" or the "Company") (TSX, OSE: QEC) announced today its financial and operating results for the first quarter of 2007.
Highlights
§ Average daily production increased almost six times to 1,702 boe/d from 292 boe/d in 2006
§ Cash flow from operations was $3.05 million up from $0.29 million in 2006
§ Gentilly #1 well tested sweet natural gas from the Trenton Black-River
§ B-3 Mattson/Besa River well drilled under budget and ahead of schedule
§ Participated in new pool discovery in Vulcan, Southern Alberta
For the three months ended March 31, 2007, Questerre reported petroleum and natural gas revenue of $7.50 million up 546% from $1.16 million in 2006. This reflects the increase in average daily production during the quarter to 1,702 boe per day up from 292 boe per day in 2006. The Company reported net earnings of $0.48 million for the quarter (2006: loss of $0.60 million) primarily representing an unrealized gain on its portfolio of marketable securities.
Cash flow from operations in 2007 grew to $3.05 million from a $0.29 million in 2006. The Company’s net working capital position at the end of the quarter was $20.43 million (2006: $10.30 million).
Michael Binnion, President and Chief Executive Officer of Questerre, commented, “Both operationally and financially, the first quarter of this year was our best quarter to date. We saw encouraging results at our high impact projects - In the St. Lawrence Lowlands, the Gentilly #1 discovery validated our exploration concept for this under-explored basin. At Beaver River, we successfully drilled the B-3 gas well under budget and ahead of schedule, setting a new baseline cost for a potential unconventional resource play. In Alberta, we leveraged our expertise at Vulcan to grow our land position and participate in a new pool discovery.”
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