Calgary, Alberta — Questerre Energy Corporation (“Questerre” or the “Company”) (TSX,OSE:QEC) announced today that it has closed an acquisition of producing Bakken/Torquay oil assets in the Antler area of southeast Saskatchewan.
Michael Binnion, President and Chief Executive Officer of Questerre, commented, “This accretive acquisition consolidates our operated working interest at Antler. We now own 100% of these assets and add low-decline, high netback light oil production to our base of conventional assets. Post this acquisition, current production from the area, including adjacent production from Pierson, Manitoba, is approximately 450 bbl/d.”
The Company acquired approximately 180 bbls/d of light oil production in the Antler area for gross consideration of $7.25 million, subject to customary industry adjustments. Acquired assets include 3D seismic data over the producing acreage with a value of approximately $0.77 million. The effective date of the acquisition is October 1, 2017. The proved and probable reserves associated with these assets will be assessed by the Company’s independent reserve engineers in conjunction with the year-end 2017 reserve evaluation.
Questerre also reported that it is submitting its comments on the draft hydrocarbon regulations to the Ministry of Energy and Natural Resources in Quebec this week. The Company anticipates that subject to the review of the comments received from stakeholders, the regulations should be finalized in early 2018.
Questerre Energy Corporation is leveraging its expertise gained through early exposure to shale and other non-conventional reservoirs. The Company has base production and reserves in the tight oil Bakken/Torquay of southeast Saskatchewan. It is bringing on production from its lands in the heart of the high-liquids Montney shale fairway. It is a leader on social license to operate issues for its Utica shale gas discovery in the St. Lawrence Lowlands, Quebec. It is pursuing oil shale projects with the aim of commercially developing these massive resources.
Questerre is a believer that the future success of the oil and gas industry depends on a balance of economics, environment and society. We are committed to being transparent and are respectful that the public must be part of making the important choices for our energy future.
For further information, please contact:
Questerre Energy Corporation
Jason D’Silva, Chief Financial Officer
(403) 777-1185 | (403) 777-1578 (FAX) |Email: info@questerre.com
Advisory Regarding Forward-Looking Statements
This news release contains certain statements which constitute forward-looking statements or information (“forward-looking statements”) including the Company’s view that the assets acquired add low-decline, high netback oil production to its base of conventional assets, the reserves evaluation of the acquired assets and the Company’s expectation that the Quebec oil and gas regulations will be finalized in early 2018. Although Questerre believes that the expectations reflected in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information available to Questerre. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Questerre does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.