Some more news from QEC... March 1, 2010 Questerre updates Utica resources and conventional Reserves
Calgary, Alberta -- Questerre Energy Corporation reported today on its year-end reserves and the updated resource assessment of the Utica shale gas discovery in the St. Lawrence Lowlands, Qubec. For the Utica, the best estimate of prospective recoverable natural gas resources on Questerres acreage is 17.99 Tcf (3 billion boe). This equates to 4.36 Tcf (726 million barrels of oil equivalent boe) net to Questerre using a 10% recovery factor and does not include the benefit of its gross overriding royalty. The effective range of recovery factors in the report is from a low of 5% to a high of 23%. The 23% recovery factor resulted in a prospective recoverable resource assignment of 13.78 Tcf (2.30 billion boe) net to Questerre.
Michael Binnion, President and Chief Executive Officer of Questerre, commented, The increased resources in the updated report reflect in part the results from the vertical St. Edouard #1 well that tested at 700 Mcf/d from the middle Utica interval. With the even more recent stabilized flow rates of approximately 6 MMcf/d from the St. Edouard No. 1A horizontal well, we are increasingly confident in the prospects for our significant Utica resource.
The assessment was completed by Netherland, Sewell & Associates, Inc. (NSAI) an independent reservoir engineering firm based in Texas with an effective date of November 1, 2009. The evaluation does not reflect the results from the recent horizontal well. Questerre anticipates the report will be further updated after the results from the pilot horizontal well program.
MPO Price at posting:
$1.30 Sentiment: LT Buy Disclosure: Held
