Questerre Energy Corporation (QEC)

[Professoren]

Loven er vel ganske klar så vidt jeg har forstått at selskapene skal få erstatning

[Macken_123]

Erstatning blir det. Usikkerheten er relatert til hvor mye erstatning det blir.

[kanina]

SPM1 forventa att den detter 10-15% i morga. Men i Canada so sluttet den opp 2 % og har hatt oppgang 2 dager etter att nyheten om att loven er låst.
Ser også att dei native har gått til sak mot loven slik att dei kan utvinne gassen.

Trur ikke siste ord er sagt i denne saken… Eg blir sittende og detter den i morgen so kommer den seg nokk opp igjen senere når q tallene tikker inn.

[Professoren]

Den nyheten kom jo ut i markedet før SP1M kom med det her? Så markedet burde allerede ha falt isåfall?

[kanina]

Ja den gjorde det ;). Men SP1M trur fortsatt att den vill falle …

Rart med det

[polsmannen]

@Hoven

Questerre Energy, nøytral, kursmål 3 (3)

Hva har gått galt for Qec de siste 15 årene? Husker de hadde kursmål hvis alt slo til på 200 den gangen.

[TekBot]

Annual General and Special Shareholder Meeting Information

NOTICE IS HEREBY GIVEN THAT an Annual and Special Meeting (the “Meeting”) of the shareholders of Questerre Energy Corporation (the “Corporation”) will be held in the Bennett Room of the Ranchmen’s Club, 710 – 13th Avenue SW, Calgary, Alberta, on June 15, 2022 at 3:00 p.m. (Calgary time) for the following purposes:

1. to receive the audited financial statements of the Corporation for the year ended December 31, 2021 and the report of the auditors thereon;
2. to fix the number of directors to be elected at the Meeting at five;
   …

Vis børsmeldingen

3. to elect the directors of the Corporation for the ensuing year;
4. to appoint Ernst & Young LLP, Chartered Professional Accountants, as the auditors of the Corporation for the ensuing year and to authorize the board of directors to fix their remuneration;
5. to consider and, if thought fit, pass an ordinary resolution approving the shareholder rights plan of the Corporation as set forth in the accompanying Management Information Circular; and
6. to transact such other business as may properly come before the Meeting or any adjournment or adjournments thereof.
   The details of all matters proposed to be put before shareholders at the Meeting are set forth in the Management Information Circular accompanying this Notice of Meeting. At the Meeting, shareholders will be asked to approve each of the foregoing items.
   Only shareholders of record as of May 6, 2022, the record date, are entitled to receive notice of the Meeting.

Kilde

[TekBot]

May 11, 2022 – Questerre reports first quarter 2022 results

Michael Binnion, President and Chief Executive Officer of Questerre, commented, “Though it has not yet come into force, the National Assembly in Quebec passed Bill 21 banning oil and gas development in the province last month. We are still keen to work with the people of Quebec who have shown support for our Clean Gas project. The Government’s decision left us no choice but to take legal action to protect the rights of our shareholders. We have filed a statement of claim and we anticipate a pre-trial hearing could be held within the next few months.”

He added, “As we follow the legal process in Quebec, we have three priorities - continue development of Kakwa and Antler to capitalize on higher prices, assist Red Leaf in commercializing their EcoShale technology, ultimately for our project in Jordan, and evaluate opportunities to employ new carbon technologies.”
…

Vis børsmeldingen

Highlights
• Government of Quebec passes Bill 21 to ban oil and gas development in Quebec
• Three (0.75 net) wells completed at Kakwa Central and brought on stream in second quarter
• Current production over 2,000 boe/d with average daily production of 1,288 boe/d and adjusted funds flow from operations of $4.3 million for the quarter

With the completion and tie-in of three (0.75 net) wells at Kakwa Central, current production is over 2,000 boe/d(1). Production in first quarter averaged 1,288 boe/d (2021: 1,679 boe/d)(1) as no new wells were brought on production since the fall of 2020. Consistent with the industry at large, higher commodity prices more than offset the decline in production and petroleum and natural gas revenue totaled $9.6 million in the period compared to $7.0 million for the same period last year. The Company generated net income of $2.4 million for quarter (2021: $0.9 million) and adjusted funds flow from operations of $4.3 million (2021: $2.9 million).

The Company incurred capital expenditures of $4.9 million for the period (2021: $0.5 million) and reported a working capital surplus of $1.2 million as at March 31, 2022 (March 31, 2021: $5.4 million deficit).

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: 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 plans to focus on development of Kakwa and Antler, assist Red Leaf in commercializing their EcoShale technology, ultimately for its project in Jordan, and evaluate opportunities to employ new carbon technologies while it follows the legal process in Quebec.

Forward-looking statements are based on several 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 implementation of Bill 21 by the Government of Quebec 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, 2021, and other documents available on the Company’s profile at www.sedar.com. 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.

(1) For the period ended March 31, 2022, liquids production including light crude and natural gas liquids accounted for 814 bbl/d (2021: 971 bbl/d) and natural gas including conventional and shale gas accounted for 2,843 Mcf/d (2021: 4,250 Mcf/d). Current production of over 2,000 boe/d includes light crude and natural gas liquids of 1,255 bbl/d and natural gas including conventional and shale gas production of 4,755 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) 2022 2021
Net cash used in operating activities $ 4,904 $ 3,079
Interest received (39) (50)
Interest paid 29 133
Change in non-cash operating working capital (604) (277)
Adjusted Funds Flow from Operations $ 4,290 $ 2,885

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

Kilde

[TekBot]

Questerre Energy Releases Q1 2022 Report

President’s Message

Though it has not yet come into force as of the date of this report, the National Assembly in Quebec passed Bill 21 banning oil and gas development in the province last month. We are still keen to work with the people of Quebec who have shown support for our Clean Gas project. The Government’s decision left us no choice but to take legal action to protect the rights of our shareholders. We have filed a statement of claim and we anticipate a pre-trial hearing could be held within the next few months.
…

Vis børsmeldingen

As we follow the legal process in Quebec, we have three priorities - continue development of Kakwa and Antler to capitalize on higher prices, assist Red Leaf in commercializing their EcoShale technology, ultimately for our project in Jordan, and evaluate opportunities to employ new carbon technologies.

Highlights

• Government of Quebec passes Bill 21 to ban oil and gas development in Quebec
• Three (0.75 net) wells completed at Kakwa Central and brought on stream in second quarter
• Current production over 2,000 boe/d with average daily production of 1,288 boe/d and adjusted funds flow from operations of $4.3 million for the quarter

We have heard from many of our Norwegian shareholders who are bewildered by the Government’s decision which came after the Russian invasion of Ukraine. As energy security has become a priority again and Canada has the ability to be a reliable supplier, they are questioning why Quebec is ignoring how it can help on the global stage. This sentiment is shared by most Canadians too. A recent poll by the Montreal Economic Institute shows that 72% of Canadians support the export of energy to Europe, including 65% of Quebecers, with 17% opposed. In our view, the decision by the Government is clearly not based on social license or public opinion.

We too, were perplexed by their decision to introduce the law ostensibly on the basis of reducing emissions. According to the regulatory impact assessment on Bill 21 prepared by the Ministry of Energy and Natural Resources, the purpose of the bill is to ‘promote the energy transition and the achievement of objectives in the fight against climate change by reducing GHG emissions and fossil fuel consumption.’ The math is clear that, this legislation, when enacted, will have the opposite effect.

Quebec emissions will be dramatically higher from this ‘business as usual’ approach when compared to zero emissions consumption based on our circular economy approach. Quebec’s natural gas consumption has remained remarkably stable over the last few decades at approximately 0.5 Bcf/d. It remains entirely dependent on imported natural gas from the United States and Western Canada. As a result, Quebec is locking in global emissions likely to be up to four times higher just from the production compared to those from consuming Clean Gas locally combined with new carbon technology.

The rollout of new carbon technology is a big opportunity that Quebec is missing by banning our project. The Government’s impact assessment notes ‘the ban would showcase Quebec as a serious and bold leader in the fight against climate change.’ This is the opposite of the truth. We believe that it is by implementing a true net-zero hub using Clean Gas that Quebec could become a real leader in energy transition. Zero emissions hubs and carbon tech are becoming the future of energy with growing support from the private and public sectors. In its most recent budget, the Federal Government of Canada announced a refundable investment tax credit of 50% of the costs of these technologies, specifically carbon capture and sequestration.

Despite the geopolitical and environmental impacts, enquiries from our shareholders are focused on the nature and quantum of our claim given the absence of fair and just compensation under the legislation. These details will be finalized this summer as part of an expert witness report to validate our claim. As natural gas prices continue to rise to their highest levels in over 13 years, the strategic value of our discovery can only appreciate.

The rise in oil prices is revitalizing interest in Red Leaf and their proprietary technology to produce net-zero oil in Utah. This technology will be essential to the development of our project in Jordan. They recently engaged Hatch, a global engineering firm, to validate their redesigned process before they finalize engineering for a small-scale commercial plant. We are also working closely with them to capitalize on a recently acquired land parcel in the oil-producing Uinta Basin in Utah that is the terminus for a proposed railway line.

Operating & Financial

The three new wells at Kakwa Central were completed and tied in last month. Including flush production, our current volumes are just over 2,000 boe/d. With no new wells for the last year, our production in the quarter averaged close to 1,300 boe/d, down marginally from the fourth quarter volumes over 1,400 boe/d and more materially from the same period last year of over 1,600 boe/d.

Consistent with the industry at large, higher natural gas and oil prices materially improved our revenue and adjusted funds flow from operations. We generated $4.3 million compared to $3.8 million last quarter and $2.9 million in the first quarter of last year. These funds flow from operations largely funded our capital expenditures of $4.9 million to finish the drilling and partially complete the wells.

Outlook

Based on the strength in medium-term prices, we plan to participate in additional wells as proposed by the operators at Kakwa. Subject to any mid-year budget revisions by the operators, we expect drilling to resume next year.

Even though the outlook is bleak, we hope the Quebec Government carefully considers the enactment of Bill 21 given the situation in Europe. The Federal Government of Canada has recently started discussions with two companies that have LNG projects on the east coast of Canada to increase gas supplies to Europe. Our project has sufficient scale that, in full development, we could supply nearly 40% of German natural gas imports from Russia.

Michael Binnion
President and Chief Executive Officer

Kilde

[Rodjer]

Med dagens markedssituasjon kan det kanskje komme positive overraskelser i Qec, spennende vinkling og har vært inne på tanken selv må jeg innrømme.

https://investornytt.no/spennende-ar-for-qec-bra-risk-reward/

[Hoven]

Attention Prime Minister Trudeau: Quebecers don’t want your expensive green...

[TekBot]

June 15, 2022 – Questerre reports on AGM voting results

Calgary, Alberta – Questerre Energy Corporation (“Questerre” or the “Company”) (TSX,OSE:QEC) announced today that, at its annual meeting of shareholders held on June 15, 2022 (the “Meeting”), all matters presented for approval at the Meeting were approved.

At the Meeting, a vote was held by ballot which approved an ordinary resolution to fix the number of directors to be elected at the Meeting at five. In addition, each of the five nominees proposed in the Company’s Management Information Circular dated May 9, 2022 (the “Circular”) were elected as directors to hold office until the next annual meeting of shareholders or until their successors are duly elected or appointed, unless their office is earlier vacated in accordance with the by-laws of the Company. The detailed results of the vote conducted by ballot are set out below:
…

Vis børsmeldingen

Nominees		Votes For	Votes Withheld
Michael Binnion		52,686,551	(98.78%)	650,165	(1.22%)
Mireille Fontaine		52,630,880	(98.68%)	705,836	(1.32%)
Hans Jacob Holden		52,627,851	(98.67%)	708,865	(1.33%)
Dennis Sykora		52,685,651	(99.78%)	651,065	(1.22%)
Bjorn Inge Tonnessen		52,557,980	(98.54%)	778,736	(1.46%)

By vote held by ballot, the ordinary resolution to approve the appointment of Ernst & Young LLP, Chartered Professional Accountants, as the auditors of the Company to hold office until the next annual meeting of shareholders or until their successors are appointed and authorizing the directors of the Company to fix their remuneration, was approved.

By vote held by ballot, the ordinary resolution to adopt and approve the shareholder rights plan of the Corporation as set forth in the Circular, was approved.

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: info@questerre.com

Kilde

[TekBot]

Updated Company Presentation

The attached presentation was made at the Annual General Meeting of Shareholders on June 15, 2022.
…

Vis børsmeldingen

Kilde

[Hoven]

EU-parlamentet sier ja til å «grønnmerke» gass

[Hoven]

Utica Resources suing Quebec government over anti-energy bill

[Hoven]

2022-07-26 | TSX:QEC | Press Release | Questerre Energy Corporation

[kanina]

Klipper denne inn fra et annet forum. Synst denne er juciy.

På tide å kikke på nedenstående, nå som Q2-rapport skal legges frem 10. august?

Ståa forventes enda bedre enn sist; tillagt antatt nto cash og med dagens CAD/NOK-kurs på ca kr 7,60 er * antatt core NAV i QEC ca kr 8/aksje *.

Dagens kurs kr 1,70 er da ca 22% av core NAV pluss alt annet gratis. Ikke så verst, spør du meg.

Har omsider skummet gjennom årsrapporten. Følgende mener jeg er sentralt å merke seg:

1. Sterkt stigende produksjon fra Q2 i år med (skattefri) superlønnsomhet (opex/boe USD 18) 2) NPV 10% av eksisterende produksjon økt kraftig til CAD 270 mill 3) Qualifying expenses Quebec CAD 165 mill (erstatningsgrunnlag)

Selskapet er nå gjeldfritt, med sterkt økende produksjon og der nye Kakwa-brønner finansieres over driften. Worst case i Quebec er etter min mening at MINST historiske kostnader (qualifying expenses) erstattes. Da blir ‘core NAV’ i QEC som følger:

NPV av Kakwa/Antler = CAD 270 mill + min. erstatning Quebec = CAD 165 mill, totalt CAD 435 mill => kr 7 pr aksje

QEC prises nå til moderate 25% av NAV . I tillegg gratis opsjon på Quebec (gassprod. + CO2-lagring) Red Leaf teknologi/cash (med snarlig Utah-pilot oil/rare-earth) og Jordan (med 8 mrd boe-potensiale).

Selv de som misliker Mike Binnion må da kunne like slik R/R.

[TekBot]

Q2 2022 MD&A and Financial Results

President’s Message

During the quarter, three new Kakwa wells were brought on production. Leveraging the strong commodity prices, we recorded adjusted funds flow from operations(1) of over $12 million for the period.
…

Vis børsmeldingen

Protecting our legal rights is our top priority after the Government of Quebec announced its plans to enact Bill 21 and revoke our licenses without meaningful compensation. We filed our primary claim in the Superior Court of Quebec this winter. Our litigation counsel recently engaged one of the Big 4 accounting firms as an expert witness to quantify our damages. Based on the value of the multi-Tcf discovery in excess of several billion dollars (on a risk adjusted basis), we expect this claim will be substantially larger than the notional $100 million the Government has suggested as a settlement. We are also supporting other stakeholders including First Nations and Quebec royalty holders to ensure their rights are also protected against the Government’s actions.

Our investee company, Red Leaf, where we hold a 40% equity interest, also made progress on their new technology with a successful third-party review completed July. The granting of the final permit for a short line railroad terminating on their land is also very good news for Red Leaf and its refinery permit in the Uinta Basin in Utah.

Highlights

• Average daily production of 1,909 boe/d and adjusted funds flow from operations of $12.2 million for the quarter
• Government of Quebec announced plans to enact Bill 21 and revoke exploration licenses
• Red Leaf completes third-party engineering validation of new design

Contrary to other Western nations with natural gas resources, the Quebec Government seems to remain unwilling to consider exporting Clean Gas and alleviating the European energy crisis. This continues to surprise us as well as many of our Norwegian shareholders. This also conflicts with the recent comments by the Canadian Government that it is assessing expanding infrastructure to export energy to Europe. With an approved LNG export facility at Becancour, less than ten kilometres from our acreage, we could be an integral part of both this infrastructure and the supply. Though we remain realistic, the upcoming visits to Canada by the German Chancellor and the President of the European Union to ‘secure key partnerships on energy security, critical minerals and clean tech’ might prompt the Quebec Government to reconsider their plans.

The Canadian Government also noted that this infrastructure could then be used for exporting hydrogen in the long-term. This would align with the growing number of industrial hubs producing and consuming hydrogen and natural gas that are transforming existing energy systems, as reported this spring by the World Economic Forum. We remain convinced that our leading-edge project that integrates carbon capture, carbon recycling and zero-emission hydrogen, could deliver on the promise of eliminating emissions while providing both clean natural gas and hydrogen.

We respectfully reiterate that the policy of the Government of Quebec appears to be out of touch with the current geopolitical situation and with 21st century energy systems and technology. Recent polls have shown that the people of Quebec seem more knowledgeable and they consistently show a majority in favour of developing local natural gas. We are still struggling with the rationale for the Quebec Government’s course of action in the name of climate change given these indisputable environmental, economic and strategic benefits.

Although demonstrating the benefits of Red Leaf’s technology has taken longer than expected, we took a step closer with the review by a third-party engineering firm, Hatch, of their new re-design. Among other things, Hatch reviewed the material and energy balance, kinetic model, product composition, loading and unloading as well as preliminary cost estimates for the commercial plant. They concluded that ‘the basic concept is sound and that there is a clear path to commercialization.’ They also concurred with management that a scaled version of the commercial plant producing over 200 bbl/d will validate and optimize the current design and improve readiness for commercial development. We are working with them to find investors and partners for this small commercial demonstration plant.

Operating & Financial

Our results reflect both the increased volumes and higher commodity prices in the quarter. With the three new wells tied-in, production for the quarter averaged 1,909 boe/d (2021: 1,479 boe/d) and 1,600 boe/d for the first half of the year (2021: 1,579 boe/d). Production volumes in the second half of the year will be impacted by an unplanned compressor outage at Kakwa in the third quarter as well as natural declines, partly offset by the planned conversion of our royalty volumes to working interest volumes at Kakwa North.

We generated $12.2 million of adjusted funds flow from operations for the quarter and $16.5 million year to date. As capital spending was limited in the quarter, we recorded a working capital surplus of $10.6 million at the end of the period. We anticipate this will grow with limited capital spending for the remainder of this year.

Outlook

While the legal process in Quebec is likely to be protracted, we are committed to seeing this through. It has been a 20-year investment to make a world class discovery, engineer it to eliminate emissions almost entirely and secure social acceptability. The Quebec Government’s decision to seek a summary dismissal of our case has only strengthened our resolve.

If prices remain strong and wells continue to have quick payouts, the operators of our Kakwa joint ventures could resume drilling late in the fourth quarter. For the remainder of this year, we plan to build up our cash reserves to fully participate in these programs to grow our production.

Michael Binnion
President and Chief Executive Officer

(1) Refer to Non-GAAP Measures disclosures included in the Management’s Discussion and Analysis

Kilde

[TekBot]

August 10, 2022 – Questerre reports second quarter 2022 results

Calgary, Alberta – Questerre Energy Corporation (“Questerre” or the “Company”) (TSX,OSE:QEC) reported today on its financial and operating results for the second quarter ended June 30, 2022.

Michael Binnion, President, and Chief Executive Officer, commented, “During the quarter, three new Kakwa wells were brought on production. Leveraging the strong commodity prices, we recorded adjusted funds flow from operations of over $12 million for the period.”
…

Vis børsmeldingen

Commenting on Quebec, he added, “Protecting our legal rights is our top priority after the Government of Quebec announced its plans to enact Bill 21 and revoke our licenses without meaningful compensation. We filed our primary claim in the Superior Court of Quebec this winter. Our litigation counsel recently engaged one of the Big 4 accounting firms as an expert witness to quantify our damages. Based on the value of the multi-Tcf discovery, we expect this claim will be substantially larger than the notional $100 million the Government has suggested as a settlement. We are also supporting other stakeholders including First Nations and Quebec royalty holders to ensure their rights are also protected against the Government’s actions.”

Reporting on the Company’s 40% investment in Red Leaf, he added, “They also made progress on their new technology with a successful third-party review completed early in the third quarter. The granting of the final permit for a short line railroad that terminates on their land is also very good news for Red Leaf and its refinery permit in the Uinta Basin in Utah.”

Highlights
• Average daily production of 1,909 boe/d(1) and adjusted funds flow from operations of $12.2 million for the quarter
• Government of Quebec announces plans to enact Bill 21 and revoke exploration licenses
• Red Leaf completes third-party engineering validation of new design

Consistent with prior periods, Kakwa continued to account for 80% of corporate production. With three (0.75 net) wells brought on production in the quarter, production increased materially over the prior year. For the second quarter, daily production averaged 1,909 boe/d (2021: 1,479 boe/d) and for the six months ended June 30, 2022, it averaged 1,600 boe/d (2021: 1,579 boe/d).

The improvement in commodity prices over the same period last year materially improved revenue and adjusted funds flow from operations in 2022. For the quarter, petroleum and natural gas sales increased to $17 million from $7.1 million last year and $26.6 million year to date from $14.1 million in the prior year. The higher revenue contributed to adjusted funds flow from operations of $12.2 million (2021: $4.2 million) in the quarter and $16.5 million for the first six months of the year (2021: $7.1 million).

The higher revenue also contributed to net income of $9.1 million for the quarter (2021: $2.9 million) and $11.5 million (2021: $3.8 million) for the first half of the year. Capital expenditures in the quarter were $2.8 million (2021: $0.5 million) and $7.8 million year to date (2021: $0.9 million).

The Company also reported on the pending renewal of its credit facility with a Canadian chartered bank. Following a preliminary review conducted in the second quarter, the Company anticipates its $16 million revolving operating demand facility will remain unchanged at $16 million. The renewal will take effect upon receipt of the final requisite approvals in the third quarter. The effective interest rate on the facility for the first half of 2022 was 4.08% (2021: 3.45%). As at June 30, 2022, effectively no amounts were drawn on the facility and the Company held unrestricted cash and term deposits of $13.8 million. The Company had a net working capital surplus of $10.6 million (2021: $1.2 million deficit).

The term “adjusted funds flow from operations” and “working capital surplus (deficit)” are non-IFRS measures. 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: 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 plans to protect its legal rights in Quebec, its expectations that the claim will be substantially larger than the notional amount proposed by the Government of Quebec, its support for other stakeholders and its views on the potential impact of the final railroad permit on Red Leaf’s refinery permit.

Forward-looking statements are based on several 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 implementation of Bill 21 by the Government of Quebec 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, 2021, and other documents available on the Company’s profile at www.sedar.com. 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 three-month period ended June 30, 2022, liquids production including light crude and natural gas liquids accounted for 1,157 bbls/d (2021: 887 bbls/d) and natural gas including conventional and shale gas accounted for 4,510 Mcf/d (2021: 3,549 Mcf/d). For the six-month period ended June 30, 2022, liquids production including light crude and natural gas liquids accounted for 987 bbls/d (2021: 929 bbls/d) and natural gas including conventional and shale gas accounted for 3,682 Mcf/d (2021: 3,898 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 surplus (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 June 30,	Six months ended June 30,

($ thousands) 2022 2021 2022 2021
Net cash from operating activities $ 10,162 $ 3,006 $ 15,066 $ 6,085
Interest received (69) (48) (108) (98)
Interest paid 10 123 39 256
Change in non-cash operating working capital 2,080 1,143 1,476 866
Adjusted Funds Flow from Operations $ 12,183 $ 4,224 $ 16,473 $ 7,109

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

Kilde

[Hoven]

Quebec Conservative Party unveils election platform: tax cuts, energy...