April 1, 2008 - Significant Utica shale gas discovery announced on Questerre acreage
Calgary, Alberta - Questerre Energy Corporation ("Questerre" or the "Company") (OSE,TSX:QEC) is pleased to announce that its partner, Forest Oil Corporation (“Forest”), reported on a significant Utica shale discovery on the Company’s Yamaska licenses in the St. Lawrence Lowlands (the “Lowlands”) in Quebec. Questerre holds a 7.5% gross overriding royalty convertible into a 20% working interest on these licenses.
Forest reported results on the vertical pilot wells it completed and tested earlier this year. Test rates were up to 1 mmcf/d with a heat content of 1,027 to 1,136 BTU. The border price for this natural gas is estimated to be a $1.05 premium to NYMEX.
Forest further reported that the Utica shale has “rock properties comparable to the Barnett Shale but with premium gas price.” Utica shale gas properties were reported as follows:
Utica Barnett
Depth (ft) 2,300-6,000 4,500 – 9,000
Thickness (ft) 500 150 – 700
Clay Content (%) 15 – 26 15 – 30
TOC (%) 1.0 – 3.1 3.5 – 5.0
Gas-Filled Porosity (%) 3.2 – 3.7 3.0 – 4.8
Pressure Gradient (psi/ft) 0.45 – 0.60 0.46 – 0.50
Maturity (Ro) 1.3 – 2.0 1.0 – 2.2
Gas Price ($) NYMEX + 1.05 NYMEX – 0.53
As part of Forest’s previously announced commitment to spent $10 million to earn a 60% interest in the 113,453 acre Yamaska licenses it confirmed it will drill two horizontal wells with a four-stage fracture stimulation per well in 2008. Forest estimates the wells will cost $2.5 million per well on an ultimate program basis.
Forest further reported its estimate of the discovered resource of 93 Bcf (15.5 mmboe) per section and unrisked potential of 1.3 – 2.2 Bcf/well (0.22 mmboe – 0.37 mmboe) representing recovery efficiencies of 15-25%. Using Forest’s estimated spacing there could be approximately 800 wells on the Yamaska permits fully developed.
Michael Binnion, President and Chief Executive Officer of Questerre, commented, “The Forest Oil press release and presentation today is an important endorsement of the shale gas potential of the Lowlands. Their program is still in the pilot stage but we agree the results are very encouraging. Questerre would hold approximately 350,000 net acres in the Lowlands after earning by Talisman and Forest. This compares quite favorably to Forest Oil’s net acreage of 269,000 acres. As we were one of the first companies to recognize the potential of the Lowlands, we are confident that we have secured the premium acreage.”
Questerre Energy Corporation is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development oil and gas projects in Canada.
For further information, please contact:
Michael R. Binnion, President
Tel: (403) 777-1185
Fax: (403) 777-1578
Email: info@questerre.com
Web: www.questerre.com
CALGARY, ALBERTA, May 21, 2008 (Marketwire via COMTEX News Network) --
Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSLO:QEC) announced that it plans to participate with its partner Talisman Energy Canada ("Talisman") in a major pilot program to assess the commerciality of unconventional gas in the St. Lawrence Lowlands, Quebec.
In addition to the previously announced commitment to drill three vertical test wells, the pilot program will include vertical and several horizontal wells. Questerre expects the program to be carried out in 2008 and 2009 with a budget in excess of $100 million. For its acreage in the play fairway, Questerre will budget, on a net basis, between $25 million and $30 million of which $3 million to $5 million is expected to be spent in 2008 with the balance in 2009. These amounts do not include anticipated spending on the Yamaska licenses.
The pilot project to assess commerciality will focus on the siltstone/shale sequences of both the Utica and Lorraine. Based on recently published data by Talisman, the discovered resource for the Lorraine of 50 Bcf-190 Bcf per section compares favorably to the discovered resource for the Utica of 25 Bcf-160 Bcf per section. The initial three vertical test wells will also test the Trenton Black-River. Further investment in the Trenton Black-River will be contingent on the exploration results achieved.
Michael Binnion, President and Chief Executive Officer of Questerre, commented, "We are delighted with the expanded program to evaluate commerciality of both the Lorraine and Utica formations. Based on work to date we believe the rock properties are very promising for unconventional gas in the Lowlands."
Questerre Energy Corporation is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development oil and gas projects in Canada.
$3.6637 (07/23/08)
