There's life after all in the Utica Shale

Although still no word on flow rates.


Jan 07, 2009 01:26 ET
Questerre Updates Their Quebec Yamaska Activities

CALGARY, ALBERTA--(Marketwire - Jan. 7, 2009) - NOT FOR DISTRIBUTION ON U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSLO:QEC) updated operations for the St. Francois du Lac and St. Louis de Richelieu horizontal wells on the Yamaska permits in the St. Lawrence Lowlands, Quebec.Operated by its partner, both horizontal wells were successfully frac'd. Frac operations went according to plan and on schedule. On initial flow back the wells have co-produced burnable gas and frac fluids at varying rates.

The frac plugs were only just recently drilled out with minor operational delays. Tubing has been run in the hole to complete the well for long term production testing which will also assist in lifting the frac fluids for final clean up of the wells. We anticipate it will take several weeks for final clean up of the wells and determination of a final stabilized production rate equivalent to a '30-day rate'.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, "These are the two first horizontal wells in the Lowlands and are another step in a multi-well pilot program to evaluate the commerciality of the Quebec shale plays. They represent a critical step in our technical understanding of the Quebec shales and we are obviously pleased with how well the frac operations were carried out. "Questerre 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.

This news release contains forward-looking information. Implicit in this information are assumptions regarding commodity pricing, production, royalties and expenses, that, although considered reasonable by the Company at the time of preparation, may prove to be incorrect.

These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in the Company's plans, commodity prices, equipment availability, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee made by the Company that the actual results achieved will be the same as those forecasted herein.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 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.This news release does not constitute an offer of securities for sale in the United States.

These securities may not be offered or sold in the United States absent registration or an available exemption from registration under the United States Securities Act of 1933, as amended.