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The Lowlands are situated in Quebec, south of the St. Lawrence River between Montreal and Quebec City. Building a circular economy on a significant discovery on Quebec Utica could result in the second lowest supply gas cost in North America.
The Company’s primary objective remains the implementation of a business and political solution for the development of its natural gas discovery in the province. Concurrently, it is protecting its legal rights following the enactment in August 2022 of Bill 21, An Act mainly to end petroleum exploration and production and the public financing of those activities in Quebec (“Bill 21”).
In May 2025, the Quebec Court of Appeal ruled on an appeal by the Attorney General of Quebec of a judgement rendered by the Quebec Superior Court suspending key provisions of Bill 21 in January 2024. The appeal concerns the analysis of the criteria applicable to the suspension of a law. The Court of Appeal dismissed the joint motion by the Company and other license holders for the review and annulment of the judgement granting the appeal and allowed the appeal. Subject to the results of the Company’s appeal, the Government of Quebec could move to enforce the specific provisions related to the abandonment and reclamation of existing wells.
The Quebec Court of Appeal noted in its decision that the Justice did not err in law or exercise his discretion in an unjudicial or unreasonable manner in concluding there was a serious question to be decided. The Quebec Court of Appeal noted that the Justice erred in law on the balance of convenience test and did not presume that the suspension of Bill 21 would cause irreparable harm to the public interest. The ruling noted that, in view of the importance of the public interest and the failure to demonstrate the benefits to the public of suspending key provisions of Bill 21, it allowed the appeal and overturned the Justice’s original decision.
Questerre has applied for leave to appeal this decision by the Quebec Court of Appeal to the Supreme Court of Canada.
The Company is also proceeding with the main hearing on the merits of the case in accordance with procedural rules in Quebec, including its debate on the constitutional validity of Bill 21. The questioning of key Government representatives is scheduled for this September and October to be followed by the establishment of a trial date
for the hearing.
