CALGARY, ALBERTA--(Marketwire - Jan. 22, 2013) -
NOT FOR DISTRIBUTION ON U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC) (OSLO:QEC) announced today that it has significantly increased its landholdings in the Kakwa-Resthaven area of Alberta.
Michael Binnion, President and Chief Executive Officer, commented, "Following our discovery well, we have been working to grow our initial toehold into a new core area for the Company. I am pleased to report that we now have over 37,600 gross acres, approximately 60 sections, with a 77% working interest equal to 29,000 net acres or 45 net sections. This acreage lies in the heart of the liquids-rich fairway where our initial results have met or exceeded expectations."
Mr. Binnion also commented, "We have been adding land in both the development area adjacent to our three existing wells as well as other acreage on trend where we expect similar high-liquids rates. In our development area, we now have approximately 34 gross sections with a 60% working interest or 12,800 net acres. Targeting what we believe will be the next development area, located approximately 32 km away to the northwest, we have acquired 16,000 net acres. Based on industry activity and reported results, we believe this area has similar potential."
Questerre reported that gross production from its first well continues to be approximately 1100-1300 boe/d with liquids rates of 150-200 bbls/MMcf. Questerre has a 37.5% working interest in this well before payout and a 25% working interest in this well after payout.
Tie-in and commissioning of its second well is complete and the well is scheduled to be on production by early February. Production will be based on available processing capacity at a third party plant. This well flowed 974 bbl/d of condensate and 4.97 MMcf/d of natural gas or 1800 boe/d over the last 24 hours of a 96-hour production test. Questerre has a 25% working interest in this well.
Questerre also updated the status of its third well, the 15-01 well. Following the successful completion of well control operations last week, the well is being prepared to resume production testing. Subject to equipment availability, Questerre expects testing to commence in late February. Questerre has a 100% interest in this well before payout and an 80% interest in this well after payout.