Michael Binnion reports
QUESTERRE REPORTS NET PROFIT FOR THIRD QUARTER OF 2019
Questerre Energy Corp. had a net profit of $1.33-million and production of just over 2,300 barrels of oil equivalent per day for the third quarter ended Sept. 30, 2019.
Michael Binnion, president and chief executive officer of Questerre, commented: "Exceptional well results drove an increase in production and positive earnings for the third quarter in spite of soft commodity prices. We continue to see the benefits of efficiency gains with lower well costs and higher production. Many of these efficiency gains relate to a smaller environmental footprint, in particular with respect to water recycling. We were also excited to see the results from the Lower Montney interval offsetting our Kakwa acreage."
He added: "In the third quarter, results include a 5-per-cent royalty interest on an additional 5,000 barrels of oil equivalent per day of production from farm-in wells at Kakwa North, where Questerre holds a 50-per-cent working interest after payout. Based on drilling results, our partner chose to drill a fourth and final farm in well to earn 50 per cent of the company's Kakwa North and Kakwa South acreage. Based on the results to date, our capital requirements will grow next year when we start a 50/50 joint drilling program."
Commenting on developments in Quebec, he noted: "We have advanced the engineering for our 'zero, zero, zero' clean tech energy project to create what may be the world's first near-zero emissions natural gas field in Quebec. We are developing the detailed project plans, as well as the preliminary modelling of the environmental benefits, with our coalition partners."
Questerre is committed to being a leader in integrating clean technologies to transform and transition hydrocarbons as part of a future energy diet with lower emissions.
Average daily production of 2,343 boe per day for the quarter with adjusted funds flow from operations of $5.04-million and net profit of $1.33-million;
Operator spuds fourth farm-in well at Kakwa North;
Baseline study of business-as-usual environmental impacts of Ohio Utica development under way to assess impacts of clean tech energy project in Quebec;
Commissioned mining feed preparation study for Jordan to reduce emissions and improve efficiencies.
Consistent with prior quarters, Kakwa continued to account for over 80 per cent of corporate volumes. Production averaged 2,343 boe per day in the third quarter (2018: 1,414 boe per day) and 2,108 boe per day for the first nine months of 2019 (2018: 1,812 boe per day). Petroleum and natural gas revenue of $8.69-million for the quarter (2018: $6.89-million) increased over the same period last year and the prior quarter with higher volumes. Year to date, revenue of $23.81-million (2018: $26.51-million) declined over the prior year due to lower crude oil and liquids prices.
The company generated adjusted funds flow from operations of $5.04-million for the quarter (2018: $2.62-million) and $10.25-million for the first nine months of 2019 (2018: $13.28-million). The company reported a net profit of $1.33-million for the quarter (2018: $2.02-million loss) and a loss of $1.7-million year to date (2018: $1.39-million loss).
Capital investment was primarily at Kakwa and totalled $6.76-million for the quarter (2018: $6.08-million) and $17.19-million for the first nine months of 2019 (2018: $22.19-million).
The term adjusted funds flow from operations is a non-international financial reporting standard measure.
Questerre Energy 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. It believes it can transition its energy portfolio. With new clean technologies and innovation to responsibly produce and use energy, it can sustain both human progress and its natural environment.
We seek Safe Harbor.
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