Questerre Energy Corporation (QEC)

TekBot · september 19, 2022, 6:02am

Questerre joins E&P companies in commitment to provide LNG to Europe

Hoven · september 21, 2022, 8:51pm

“If Ottawa is serious about helping Europe and others overcome natural gas shortages, then it must streamline approvals for proposed projects across the country.”

Hoven · september 21, 2022, 9:00pm

QEC har en ferdig signert avtale med First Nations. Presset øker på myndighetene både i Quebeq og på nasjonalt plan om å bistå i den største energikrisa verden har opplevd.

Hoven · september 23, 2022, 7:00am

Hoven · oktober 6, 2022, 9:53pm

Reuters

October 6, 2022, 2:57 pm

Natural Resources Minister Jonathan Wilkinson said this week that Canada has set up working groups with Germany and the European Union to determine whether it can “potentially assist with LNG” from eastern Canada.

A German government source who was not authorized to speak on the record said Canada and Germany “are still working on” a possible LNG project.

“Minister Wilkinson has spoken often and directly with his German and European counterparts, and with members of the private sector, regarding LNG opportunities on Canada’s east coast,” said Keean Nembhard, a spokesman for Wilkinson.

Q3 2022 MD&A and Financial Results

President’s Message

Although Bill 21 was enacted during the quarter, the Quebec election is now over. There could be an opportunity for a less political approach to energy security by the Quebec Government. The growing demand for clean energy in North America, including Quebec, and, more urgently in Europe only highlights the value of our project. Concurrently, to protect our legal rights we are advancing the claim for breach of contract and unjust enrichment. A Superior Court judge was appointed last month to separately manage all the claims related to Bill 21. A hearing date for our claim should be set shortly. We remain open to a political and business solution.
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Vis børsmeldingen

Effective the end of the quarter, we converted our royalty interest in the four original farm-in wells at Kakwa North into a 50% working interest. This should add approximately 500 boe/d over the remainder of this year. Based on our discussions with the operator, drilling on a new three-well pad is planned for late next year.

Highlights
• Questerre converts Kakwa North royalty interest to working interest adding 500 boe/d for remainder of the year
• Government of Quebec enacts Bill 21 and revokes exploration licenses
• Average daily production of 1,629 boe/d and adjusted funds flow from operations of $5.2 million

As the European Union is preparing for widespread blackouts in its member states this winter, the current energy crisis is one of several places where our Quebec Utica project could help make a difference.

During the German Chancellor’s visit to Canada to discuss energy supplies this August, the Prime Minister commented about the difficulties of LNG exports from Canada’s East Coast. In our press release issued during the visit, we reiterated the proximity of our discovery to a LNG export facility with a successful environmental review. It would have shorter delivery times to the proposed offshore terminals near Hamburg, Germany than any of the LNG export facilities in the United States. To mitigate the financial and logistical challenges of greenfield onshore terminals, we have been assessing floating LNG vessels.

In the long term, demand and the infrastructure for hydrogen as a clean fuel is likely to grow. Our Clean Gas can be used to produce zero-emissions or blue hydrogen at large scale. It will compare favorably on an environmental basis with green hydrogen, when considering ecological indicators as well as emissions.
In the medium term, there are growing concerns about future electricity shortages in Canada. A recent report by the Polytechnique Montreal’s Institut de l’energie Trottier notes that many provinces will be incapable of meeting their electricity needs. The Quebec premier recently acknowledged that the province could indeed be short on electricity. With a secure supply of local natural gas, our Clean Gas could help Quebec free up critical electricity.

Although the Government of Quebec perhaps did not prioritize these strategic benefits, they nonetheless recognized the value. In their 2009-2010 budget released shortly after we made the discovery, the Government estimated the production value at $45 billion using $5/MMbtu gas prices on an undiscounted basis. Of interest, the budget is still available online and the reference is found on pages F74 and F75.

Our legal claim is that by enacting Bill 21 and revoking our exploration licenses, with no meaningful compensation, the province has been ‘unjustly enriched’ by the value of our discovery. As we have previously noted, the discovery once made, cannot be undiscovered and it has tremendous value to whoever owns it. Our expert witness is working to quantify the value of this discovery and our resulting damages. This should be finalized early in the new year and submitted with our revised pleadings to the Superior Court.

With our investee company, Red Leaf Resources Inc., we are evaluating their assets in the oil-producing Uinta Basin in the state of Utah. These include over 7,000 acres of surface rights in the basin and a permit for a 40,000 bbl/d upgrader. A study we commissioned for the upgrader suggests the original business case still exists. It is a niche opportunity to capitalize on the locally produced crude as a feedstock for high value lubricants and supply motor fuels to a regional market. The current shortage of diesel in North America is supportive of this project. We are expanding this study and intend to move the project forward in the new year.

Operating & Financial

Production volumes in the third quarter increased to 1,629 boe/d over 1,363 boe/d last year with the three (0.75 net) new Kakwa wells brought on stream in May. By comparison, production in the prior quarter was 1,909 boe/d reflecting flush production from these wells. Production in the quarter was also impacted by an unexpected compressor outage at Kakwa.

Although realized prices declined by 20% over the second quarter, they averaged over $77/boe for the quarter and $87/boe year to date. Operating costs were incrementally $1.5 million higher than last year reflecting a successful workover program at Antler and escalating fuel and water handling costs at Kakwa. We generated $5.2 million in adjusted funds flow from operations for the quarter and $21.7 million year to date. The increased cash flow from operations funded our capital investment in these wells and translated to a working capital surplus of $14.4 million at the end of the quarter.

Outlook

Assuming commodity prices remain relatively stable, the incremental cash flow from Kakwa North production will improve our working capital position. Along with our undrawn credit facility, we should be well positioned to fund a future 50/50 drilling program at Kakwa North later next year.

We appreciate that our shareholders’ top concern is the status of our legal claim. While the timing and eventual outcome is uncertain, we remain committed to realizing, either through production or compensation, the value of our discovery.

Michael Binnion
President and Chief Executive Officer

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

Kilde

TekBot · november 9, 2022, 10:56pm

Questerre reports third 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 third quarter ended September 30, 2022.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, “Although Bill 21 was enacted during the quarter, the Quebec election is now over. There could be an opportunity for a less political approach to energy security by the Quebec Government. We remain open to a political and business solution as the growing demand for clean energy only highlights the value of our project. Concurrently, to protect our legal rights, we are advancing the claim for breach of contract and unjust enrichment. A Superior Court judge was appointed last month to separately manage all the claims related to Bill 21 and a hearing date should be set shortly.”
…

Vis børsmeldingen

He added, “Effective the end of the quarter, we converted our royalty interest in the four original farm-in wells at Kakwa North into a 50% working interest. This should add approximately 500 boe/d over the remainder of this year. Based on our discussions with the operator, we expect drilling on a three well pad will commence late next year.”

Highlights
• Questerre converts Kakwa North royalty interest to working interest adding 500 boe/d for remainder of the year
• Government of Quebec announced plans to enact Bill 21 and revoke exploration licenses
• Average daily production of 1,629 boe/d and adjusted funds flow from operations of $5.2 million

Consistent with prior periods, Kakwa continued to account for 80% of corporate production. With three (0.75 net) wells brought on production earlier this year, production increased over the prior year. For the third quarter, daily production averaged 1,629 boe/d (2021: 1,363 boe/d) and for the nine months ended September 30, 2022, it averaged 1,609 boe/d (2021: 1,507 boe/d)(1). Production volumes declined over the second quarter which included flush production from the new Kakwa wells.

Although prices declined from the second quarter, higher commodity prices over the same period last year improved revenue and adjusted funds flow from operations in 2021. For the third quarter, petroleum and natural gas sales increased to $11.6 million from $7.4 million last year and $38.2 million year to date from $21.5 million in the prior year. The higher revenue contributed to adjusted funds flow from operations of $5.2 million (2021: $3.6 million) in the quarter and $21.6 million for the nine months ended September 30 (2021: $10.7 million). Funds flow in the current quarter was impacted by an incremental $1.5 million in operating costs over last year, reflecting a successful workover program in Saskatchewan and escalating fuel and water handling costs at Kakwa.

The higher revenue also contributed to net income of $2.8 million for the third quarter (2021: $2.0 million) and $14.2 million (2021: $5.8 million) for the nine months ended September 30. Capital expenditures in the quarter were $1.7 million (2021: $0.5 million) and $9.4 million year to date (2021: $1.5 million). The Company posted a working capital surplus of $14.4 million at September 30, 2022 (2021: $1.7 million).

The term “adjusted funds flow from operations” and “working capital surplus” 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 views on the potential for less political and business solution to the issues impacting its project in Quebec, the advancement of its legal claims, the timing for a hearing date, its expectations about production additions from the existing wells at Kakwa North and the timing of a potential drilling program.

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 September 30, 2022, liquids production including light crude and natural gas liquids accounted for 987 bbl/d (2021: 833 bbl/d) and natural gas including conventional and shale gas accounted for 3,852 Mcf/d (2021: 3,178 Mcf/d). For the nine-month period ended September 30, 2022, liquids production including light crude and natural gas liquids accounted for 986 bbl/d (2021: 898 bbl/d) and natural gas including conventional and shale gas accounted for 3,739 Mcf/d (2021: 3,655 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” 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.

For September Three months ended Nine months ended
($ thousands) 2022 2021 2022 2021
Net cash from operating activities $8,413 $4,202 $23,477 $10,287
Interest received (134) (54) (242) (152)
Interest paid 2 111 41 367
Change in non-cash operating working capital(3,098) (681) (1,622) 185
Adjusted Funds Flow from Operations $5,183 $3,578 $21,654 $10,687

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

Kilde

kanina · november 10, 2022, 10:58am

Qec gjør det bra… Bare synd att det er dårlige marked generelt sett når dei melder. Når dei leverte i Q2 var det bra da også, men veldig dårlige marked som ødela for stigning. Vi har ventet siden Q2 på stigning som aldri kom. Får håpe att markedet forandrer seg slik att vi slippe å vente til Jul før det løsner.

Hoven · november 11, 2022, 1:44pm

Fair value estimert med dagens produksjon til 2,7kr. Og det er uten utfallet av Quebec(utvinning eller erstatning). Så QEC selges med store rabatter på dagens kurs.

kanina · november 11, 2022, 5:07pm

Jeg ser med store øyne og det eneste jeg kan gjøre er å se på eller å laste mer. Jeg har valgt å laste mer. Den kan godt ligge her nede til eg får lønning igjen. Det gjør meg ingen ting. Litt kjedelige å se på kursen, men jeg får kjøpe mer på salg.