Questerre Energy Corp. Reports Un-Audited Consolidated Earnings and Production Results for the Third Quarter and Nine Months Ended September 30, 2013; Reports Impairment of Assets for the Third Quarter of 2013
Nov 14 13
Questerre Energy Corp. reported un-audited consolidated earnings and production results for the third quarter and nine months ended September 30, 2013. For the quarter, the company reported production of Oil and Liquids of 656 (bbls/d) compared to 602 (bbls/d), Natural Gas of 1,344 (Mcf/d) compared to 562 (Mcf/d) and Equivalent of 880 (boe/d) compared to 696 (boe/d) for the last year.
For the nine months, the company reported production of Oil and Liquids of 679 (bbls/d) compared to 553 (bbls/d), Natural Gas of 1,329 (Mcf/d) compared to 570 (Mcf/d) and Equivalent of 900 (boe/d) compared to 648 (boe/d) for the last year. The increased production for the three and nine months ended September 30, 2013 from the same periods in the prior year is mainly due to increased drilling activity in the Kakwa-Resthaven area.
For the quarter, the company reported petroleum and natural gas revenue, net of royalties of $6,142,000 compared to $4,514,000, loss before taxes of $424,000 compared to $370,000, net loss of $894,000 compared to $111,000, net cash from operating activities of $2,437,000 compared to $3,507,000, property, plant and equipment expenditures of $6,736,000 compared to $2,577,000 and exploration and evaluation expenditures of $2,692,000 compared to $6,812,000 for the last year. Cash flows from operations was $3,641,000 compared to $2,834,000 a year ago.
For the nine months, the company reported petroleum and natural gas revenue, net of royalties of $17,125,000 compared to $12,729,000, loss before taxes of $2,860,000 compared to $2,068,000, net loss of $3,141,000 or $0.01 per basic and diluted share compared to $1,813,000 or $0.01 per basic and diluted share, net cash from operating activities of $10,009,000 compared to $7,786,000, property, plant and equipment expenditures of $11,511,000 compared to $16,462,000 and exploration and evaluation expenditures of $27,729,000 compared to $13,082,000 for the last year.
The company reported impairment of assets of $68,000 compared to $22,000 for the same quarter last year.
Questerre Energy Corporation Reports Test Results from Its Fifth Horizontal Well at 05-23-63-6W6M in the Kakwa-Resthaven Area of West Central Alberta
Oct 16 13
Questerre Energy Corporation is report on the test results from its fifth horizontal well at 05-23-63-6W6M in the Kakwa-Resthaven area of west central Alberta. The 05-23 Well is approximately two miles west of the existing producing wells on its joint venture acreage and 70m to 100m deeper vertically. The well was successfully completed with a seven-stage slick water fracture stimulation in the 1,400m horizontal section. The well was tested for a 170-hour period thereafter. Over the last 24 hours of the production test, the well flowed 815 bbl/d of condensate and 3.7 MMcf/d of natural gas against anticipated gathering system pressure of approximately 2000 kPa (290 psi) on choke sizes ranging from half inch to one inch. During the entire test, the well flowed at an average condensate to natural gas rate of 195 bbls per MMcf. The well will be tied into the local gathering system shortly. Questerre holds a 25% working interest in the 05-23 Well. The company also reported that its next joint venture well located at 16-25-63-5W6M has reached total measured depth of 4,680m. Production casing is being run into the 16-25 well and, subject to equipment availability and weather, completion operations are scheduled to begin next month. Drilling time from spud to total measured depth for the 16-25 Well took approximately 34 days, 12 days shorter than previous wells on its joint venture acreage. Drilling and completion costs are demonstrating learning curve benefits earlier than originally expected. Questerre estimates current well drilling and completion costs at less than $8 million. This is a cost savings of approximately 25% of the initial well costs of $10 million. Questerre expects further material savings will be realized in the future through pad drilling and additional efficiencies. Questerre updated the testing of the 15-01 Well, recently designated as the 09-01-62-6W6M Well. A chemical soak and squeeze on the Montney formation was successful in re-establishing gas flows and high pressure on surface. The flow from the 09-01 Well included very anomalous hydrogen sulphide rates. On its joint venture acreage to the north where the company holds a 25% working interest, the operator reported that it has contracted a drilling rig for one year and the next well on this acreage is expected to spud in November. The operator also reported that equipment installation of the joint central compression and condensate stabilization facility is underway. The facility has a capacity of 15 MMcf/d plus associated liquids. It is designed to address the existing production constraints and is anticipated to be on-stream prior to the end of 2013.