Questerre reports first quarter 2021 results

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May 11, 2021 – Questerre reports first quarter 2021 results

Calgary, Alberta — Questerre Energy Corporation (“Questerre” or the “Company”) (TSX,OSE:QEC) reported today on its financial and operating results for the first quarter ended March 31, 2021.

Michael Binnion, President and Chief Executive Officer, commented, “We started to add zero emissions hydrogen and carbon capture and storage to our Clean Tech Energy project in the quarter. We are also evaluating other carbon recycling technologies that use carbon dioxide as a feedstock to make valuable products. These are essential to the new circular economy where virtually all the emissions from production and consumption are eliminated. Recent commitments by the US and Canada to cut emissions by half in the next decade need new technologies to achieve them. The success of our net zero project could be the quickest path to contributing to these climate goals and more importantly to acceptability in Quebec.”

He added, “We also saw an increase in M&A activity at Kakwa early this year. In March, the largest operator merged with another Montney producer in a $8.1 billion transaction, including net debt. In April, the operator of our Kakwa North acreage was acquired by a mid-sized company for $300 million. We are looking forward to their development plans for this acreage.”


  • Commissioned CIRAIG to study zero emissions hydrogen production from Clean Gas
  • Executed Letter of Intent with ZEG Power to incorporate blue hydrogen into Clean Tech Energy project
  • Average daily production of 1,679 boe/d with adjusted funds flow from operations of $2.9 million

Consistent with prior periods, Kakwa continued to account for approximately 80% of corporate production. During the first quarter of 2021, daily production averaged 1,679 boe/d (2020: 2,078 boe/d)(1). Improving commodity prices offset the production declines and petroleum and natural gas revenue totaled $7.0 million in the period, unchanged from the same period last year. The Company generated net income of $0.9 million for quarter (2020: $113.9 million loss) and adjusted funds flow from operations of $2.9 million (2020: $2.5 million).

With a focus on prioritizing financial liquidity, the Company incurred capital expenditures of $0.5 million for the period (2020: $2.9 million) and reduced its net debt from $7.7 million to $5.4 million as of March 31, 2021.

The term “adjusted funds flow from operations” is a non-IFRS measure. Please see the reconciliation elsewhere in this press release.

Questerre is an energy technology and innovation company. It is leveraging its expertise gained through early exposure to low permeability reservoirs to acquire significant high-quality resources. We believe we can successfully transition our energy portfolio. With new clean technologies and innovation to responsibly produce and use energy, we can sustain both human progress and our natural environment.

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:

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 views that the success of its net zero project could be the quickest path to contributing to climate goals and to social acceptability in Quebec.

Forward-looking statements are based on a number of material factors, expectations or assumptions of Questerre which have been used to develop such statements and information, but which may prove to be incorrect. Although Questerre believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Questerre can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Further, events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including, without limitation: the effect of COVID-19 on the markets and the demand for oil and natural gas; commitments to cut oil production by OPEC and others; whether the Company’s exploration and development activities respecting its prospects will be successful or that material volumes of petroleum and natural gas reserves will be encountered, or if encountered can be produced on a commercial basis; the ultimate size and scope of any hydrocarbon bearing formations on its lands; that drilling operations on its lands will be successful such that further development activities in these areas are warranted; that Questerre will continue to conduct its operations in a manner consistent with past operations; results from drilling and development activities will be consistent with past operations; the general stability of the economic and political environment in which Questerre operates; drilling results; field production rates and decline rates; the general continuance of current industry conditions; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Questerre to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Questerre operates; and the ability of Questerre to successfully market its oil and natural gas products; changes in commodity prices; changes in the demand for or supply of the Company’s products; unanticipated operating results or production declines; changes in tax or environmental laws, changes in development plans of Questerre or by third party operators of Questerre’s properties, increased debt levels or debt service requirements; inaccurate estimation of Questerre’s oil and gas reserve and resource volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Questerre’s public disclosure documents. Additional information regarding some of these risks, expectations or assumptions and other factors may be found under in the Company’s Annual Information Form for the year ended December 31, 2020 and other documents available on the Company’s profile at The reader is cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof and Questerre undertakes no obligations to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Certain information set out herein may be considered as “financial outlook” within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding Questerre’s reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.

(1) For the period ended March 31, 2021, liquids production including light crude and natural gas liquids accounted for 971 bbl/d (2020: 1,388 bbl/d) and natural gas including conventional and shale gas accounted for 4,250 Mcf/d (2020: 4,141 Mcf/d).

Barrel of oil equivalent (“boe”) amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil and the conversion ratio of one barrel to six thousand cubic feet is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalent of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

This press release contains the terms “adjusted funds flow from operations” and “working capital deficit” which are non-GAAP terms. Questerre uses these measures to help evaluate its performance.

As an indicator of Questerre’s performance, adjusted funds flow from operations should not be considered as an alternative to, or more meaningful than, cash flows from operating activities as determined in accordance with GAAP. Questerre’s determination of adjusted funds flow from operations may not be comparable to that reported by other companies. Questerre considers adjusted funds flow from operations to be a key measure as it demonstrates the Company’s ability to generate the cash necessary to fund operations and support activities related to its major assets.

  Three Months Ended March 31,
($ thousands)           2021          2020
Net cash used in operating activities $     3,079$     4,561
Interest received (50) (138)
Interest paid 133 187
Change in non-cash operating working capital (277) (2,150)
Adjusted Funds Flow from Operations $   2,885 $   2,460

Working capital surplus is a non-GAAP measure calculated as current assets less current liabilities excluding risk management contracts and lease liabilities.