Calgary, Alberta - Questerre Energy Corporation ("Questerre" or the "Company") (TSX, OSE: QEC) announced that its partner, Talisman Energy Canada ("Talisman"), has elected to exercise its option over the Company's acreage in the St. Lawrence Lowlands in Quebec.
Talisman’s election follows the recent testing of the discovery well, Gentilly #1, drilled last fall. The well is currently shut-in for pressure build-up following the testing of several intervals within the Trenton Black-River formation. During the primary three-day clean-up period, the well initially flowed at rates between 4.5 mmcf/d and 9.5 mmcf/d. However, during additional testing, the final gas flow rates declined into the range of 340 mcf/d to 630 mcf/d with associated water inflows ranging from 5 bbls/d to 344 bbls/d. Lower rates of water production were noted in the uppermost tested interval.
Given the test results to date and the high costs associated with the long tie-in to the existing pipeline and distribution system, the Gentilly #1 well will be suspended, contingent on future area appraisal and development. The commerciality of the Gentilly area will require additional successful wells to warrant the necessary capital investment in equipment and infrastructure.
Through their decision to elect to exercise the option, Talisman is committing under the terms of the agreement to acquire additional 2-D seismic. The seismic acquisition program is scheduled to begin within the next two months, subject to surface access, regulatory approval and equipment availability. The seismic program will assist in evaluating and determining future exploration drilling locations on the remaining unearned land.
Michael Binnion, President and Chief Executive Officer of Questerre, commented, "In our view, the Gentilly well is a break-through for our geological theory that Trenton Black-River reservoirs have formed in the Lowlands. We believe the well is a tremendous success and strongly supports the potential for commercial natural gas in Quebec. We are pleased that based on the results to date Talisman has elected to move forward with an exploration program in the Lowlands targeting the Trenton Black-River."
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