ENP Newswire -
Release date- 14082014 -
He added, 'On our joint venture acreage, we moved up the learning curve by drilling three wells from a single pad, each with a 1.5 mile lateral leg. These wells were completed and are currently being flowed back. We expect they will be tied-in and on production shortly. In addition to the well currently drilling, we plan to drill up to two more wells on this acreage in 2014.'
Spud 100% working interest
Drilled first three-well pad on Kakwa joint venture acreage with laterals of 1.5 miles
Red Leaf and Total joint venture secured final permit and began construction of commercial-scale capsule
Shut-ins due to weather in
Updating developments on its oil shale assets, he further added, 'We were also encouraged by the progress made by Red Leaf to commercialize its EcoShale process. During the quarter, final engineering was completed and the last construction permit issued for the EPS phase.
Total has approved the updated budget for this phase and field work started on the first large-scale capsule. On our oil shale acreage at
Daily volumes in the second quarter averaged 849 boe/d with approximately 200 bbls/d shut-in at Antler due to weather and 60 boe/d shut-in at Kakwa for third party plant maintenance. This compares to average production of 1,133 boe/d in the first quarter of 2014 and 820 boe/d for the second quarter of 2013.
Oil and liquids represented two-thirds of production volumes and benefitted from higher prices to generate cash flow from operations of
Capital expenditures for the second quarter were
The term 'cash flow from operations' is a non-IFRS measure. Please see the reconciliation elsewhere in this press release.
It is bringing on production from its lands in the heart of the high-liquids
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.
Tel: (403) 777-1185
Fax: (403) 777-1578
This media release contains certain statements which constitute forward-looking statements or information ('forward-looking statements') including proving up over 130 possible drilling locations, the timing of completion of the 14-29 Well at Kakwa North, the number of wells planned for the Company's operated acreage for the remainder of 2014, the expectation that the three joint venture wells will be tied-in and on production shortly, the number of wells to be drilled on the Company's joint venture acreage in 2014, the expectation that success on the EcoShale project could create large value for the Company's resource at
Although Questerre believes that the expectations reflected in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate, including the timing of pricing and terms of the placement, the placement results and closing, the use of net proceeds, the timing of receipt of required regulatory approvals and assumptions concerning the success of future drilling activities. Those factors and assumptions are based upon currently available information available to Questerre.
Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements.
The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at www.sedar.com.
Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Questerre does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
With respect to discovered petroleum initially in place or any subcategory of discovered resources other than reserves, there is no certainty that it will be commercially viable to produce any portion of the resources.
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 'cash flow from operations', 'working capital surplus', and 'netbacks' which are non-IFRS terms. Questerre uses these measures to help evaluate its performance.
As an indicator of Questerre's performance, cash 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 IFRS. Questerre's determination of cash flow from operations may not be comparable to that reported by other companies. Questerre considers cash 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.
The Company considers netbacks a key measure as it demonstrates its profitability relative to current commodity prices. Operating netbacks per boe equal total petroleum and natural gas revenue per boe adjusted for royalties per boe and operating expenses per boe.
The Company also uses the term 'working capital surplus'. Working capital surplus, as presented, does not have any standardized meaning prescribed by IFRS and may not be comparable with the calculation of similar measures for other entities. Working capital surplus, as used by the Company, is calculated as current assets less current liabilities excluding the current portions of the share based compensation liability, risk management contracts and the flow-through share liability.
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