Questerre Energy Corporation (QEC.OL)
- Baystreet
Stocks in play: Questerre Energy Corporation
Reported today on the recent launch of the Hydrogen Strategy for Canada by the Federal Government. CEO ...
- GlobeNewswire
Questerre expands Clean Tech Pilot engineering to include hydrogen
THIS NEWS RELEASE IS NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES OF AMERICA TO UNITED STATES NEWSWIRE SERVICES OR UNITED STATES PERSONS CALGARY, Alberta, Dec. 23, 2020 (GLOBE NEWSWIRE) -- Questerre Energy Corporation (“Questerre” or the “Company”) (TSX,OSE:QEC) reported today on the recent launch of the Hydrogen Strategy for Canada by the Federal Government. Michael Binnion, President and Chief Executive Officer of Questerre, commented, “Hydrogen is becoming more important as a transition fuel to meet governments’ net-zero targets. Last week, the Government of Canada announced its national hydrogen strategy. It recognizes the role of blue hydrogen, hydrogen produced from natural gas combined with carbon capture, to this strategy.”The Honorable Seamus O’Regan, Canada’s Minister of Natural Resources noted, “Hydrogen’s moment has come. The economic and environmental opportunities for our workers and communities are real. There is global momentum, and Canada is harnessing it.”The Honorable Jonathan Wilkinson, Canada’s Minister of Environment and Climate Change noted, “As an increasing number of countries strive for net-zero emissions by 2050, they are looking to hydrogen for their clean energy needs. Canada is well positioned to be among the global leaders in hydrogen production, which will help to create thousands of jobs, grow our economy, cut pollution and put Canada on a path to exceeding our 2030 Paris Agreement target.”Including hydrogen in the natural gas supply in Quebec has been under consideration for some time. The Company has been studying the feasibility of incorporating hydrogen into its Clean Tech Energy project. Further study will include assessing the environmental benefits and economics of green and blue hydrogen together with natural gas produced from its Clean Tech Energy project. The Company is also evaluating the potential for carbon capture and storage associated with blue hydrogen.Mr. Binnion added, “Our Clean Tech Energy project will produce natural gas with near zero emissions. Whether this Clean Gas is used to make hydrogen, to blend with hydrogen, or both, it will materially reduce emissions from production and consumption of energy. More importantly, this could turn Quebec into a hub for high value industries like methanol and fertilizer that use hydrogen and natural gas as raw materials. On a full cycle basis, our Clean Gas could make a significant contribution to reducing the footprint of these and other products.”Commenting on the status of social acceptability for its Clean Tech project he noted, “With the inclusion of hydrogen in our project and the growing interest from industrial and other consumers, we are increasingly optimistic about our prospects for next year. Once the restrictions in Quebec related to the second COVID-19 wave are lifted, we expect this will revitalize our discussions with key stakeholders.”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.Questerre’s common shares are traded on the Toronto Stock Exchange in Canada and Oslo Stock Exchange in Norway under the symbol QEC.Advisory Regarding Forward-Looking StatementsThis news release contains certain statements which constitute forward-looking statements or information (“forward-looking statements”) including the Company’s ongoing and future studies of the feasibility of incorporating hydrogen into its Clean Tech Energy project, the Company’s views that hydrogen is becoming more important as a transition fuel to meet governments’ net zero targets, its Clean Gas will materially reduce emissions from production and consumption of energy, the potential for Clean Gas to turn Quebec into a hub for high value industries, the ability of Clean Gas to make a significant contribution to reducing the footprint of methanol, fertilizer and other products, its optimism around securing social acceptability and its expectation that the inclusion of hydrogen in the Clean Tech Energy project will revitalize its discussions with stakeholders.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, 2019 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. CONTACT: 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
- GlobeNewswire
Questerre reports third quarter 2020 results
THIS NEWS RELEASE IS NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES OF AMERICA TO UNITED STATES NEWSWIRE SERVICES OR UNITED STATES PERSONS CALGARY, Alberta, Nov. 10, 2020 (GLOBE NEWSWIRE) -- 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, 2020. Michael Binnion, President and Chief Executive Officer, commented, “With our credit facility renewed in the quarter, we turned our attention to planning for the future. While global demand for oil and gas has rebounded strongly, it is still below pre-COVID-19 levels. In addition, restrictions related to the pandemic are being re-instituted in some places and lifted slower than anticipated in others. As a result, a full recovery in prices will likely be delayed. Though there is a bright spot in North American future gas prices.”He added, “We are taking the longer view and believe eventually there will be a shortage in supply. Specifically, a shortage of transition fuel supply delivered in a socially responsible way with lower emissions and a smaller environmental footprint. Canada’s new Clean Fuel Standard is an example. This standard will seek to reduce emissions intensity through aggressive targets. It will use a full cycle approach to measuring progress. Our Clean Tech Energy project in Quebec will dramatically reduce full lifecycle emissions and so could benefit from a stronger focus on ESG.”Commenting on Quebec, he added, “The timing for our Quebec project could be getting better. The economic impacts of the pandemic have highlighted how important low cost and secure energy supply is for the province. We heard this directly from energy consumers from farmers to large industrial users. We also heard from First Nations and local communities who want to be a part of a local development project.”Highlights * Executed final agreement for the credit facilities at $20 million * Increased representation of Questerre and significant shareholders on Red Leaf Board * Adjusted funds flow from operations of $1.6 million and average daily production of approximately 1,900 boe/dConsistent with prior periods, Kakwa continued to account for over three quarters of corporate production. Daily production averaged 1,875 boe/d for the third quarter (2019: 2,343 boe/d) and 2,003 boe/d year to date (2019: 2,108 boe/d). While crude oil prices improved materially over the prior quarter, they remained well below last year on a quarterly and year to date basis. Petroleum and natural gas sales totaled $5.4 million in the quarter up from $3.4 million last quarter but down from $8.7 million last year. Average realized crude and liquids prices were just over $40/bbl in 2020 compared to $60/bbl in 2019. The lower prices contributed to adjusted funds flow from operations of $1.6 million for the quarter (2019: $5.0 million) and $4.3 million year to date (2019: $10.2 million).The lower prices also contributed to a net loss of $1.0 million for the quarter (2019: $1.3 million profit) and $117.5 million (2019: $1.7 million) for the nine months ended September 30, 2020. The year to date loss reflects the impairment expense of $113 million incurred in the first quarter because of the lower future oil prices. Capital expenditures in the quarter were $0.3 million (2019: $6.7 million) and $3.7 million year to date (2019: $17.2 million).The term "adjusted funds flow from operations" and “working capital 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.comAdvisory Regarding Forward-Looking StatementsThis news release contains certain statements which constitute forward-looking statements or information (“forward-looking statements”) including the Company’s views that the recovery in oil prices will be delayed, there will be a shortage in supply of transition fuels, that its Clean Tech project in Quebec will dramatically reduce full lifecycle emissions, the timing for its project in Quebec are getting better and the importance of low cost and security of supply for the province.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, 2019 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.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.Period Ended September 30,Three MonthsNine Months ($ thousands) 2020 2019 2020 2019 Net cash from operating activities78 4,017 3,846 6,616 Interest received(89)(293)(261)(328) Interest paid146 181 477 536 Change in non-cash operating working capital1,490 1,133 227 3,423 Adjusted Funds Flow from Operations1,623 5,038 4,289 10,247 Working capital surplus is a non-GAAP measure calculated as current assets less current liabilities excluding risk management contracts and lease liabilities.
