Questerre Energy (QEC-T) arranges $26.5-million facility - QEC falls back in the 75 cent range bottom-fish it.
www.questerre.com
July 5, 2013 - News Release
Questerre Energy Corp. has secured a $26.5-million credit facility with a Canadian chartered bank.
Michael Binnion, president and chief executive officer of Questerre, commented: "This credit facility is an important part of our financing strategy for the next 12 to 18 months. Together with our existing cash flow and working capital, it will provide the flexibility to continue and accelerate development of the Kakwa-Resthaven area over the next year."
The credit facility is a revolving operating demand loan. Any borrowing under the facility, with the exception of letters of credit, bears interest at the bank's prime interest rate and an applicable basis point margin based on the ratio of debt to cash flow measured quarterly. The bank's current prime rate is 3 per cent per year. The facility is secured by a revolving credit agreement, a $50-million debenture with a first floating charge over all assets of the company and a general assignment of books debts.
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July 4th 2013 - News Release
NI 51-101 Kakwa-Restaven PR at 100 mmboe
Questerre Energy Corp. has released the results of the resource assessment of its Montney acreage in the Kakwa-Resthaven area. The best estimate by the company's independent reserve engineers of prospective resources is 100 million barrels of oil equivalent and of economic contingent resources is 32 million barrels of oil equivalent.
Michael Binnion, president and chief executive officer of Questerre, commented: "We are very pleased that the report puts a significant value on the dense resource we have captured in the Kakwa-Resthaven area over the last year. Economic contingent resources were assigned to just over 15 per cent of our total acreage based on proximity to tested or producing Montney wells. We expect that as additional wells are drilled and tested on and adjacent to our lands, the majority of the prospective resources will be reclassified as economically contingent resources and ultimately reserves."
Conducted by McDaniel & Associates Consultants Ltd., the report assessed the resources associated with the in-place petroleum and natural gas on a portion of the company's 28,800 net acres in the area. In specific, the assessment was conducted on 12,800 net acres or approximately 44 per cent of the company's total acreage in the area. No assessment was conducted of the company's 16,000 net acres held in the Wapiti area, approximately 12 miles northwest of the Kakwa-Resthaven area.
The report estimates PR net to Questerre to range between a low of 291 billion cubic feet equivalent (49 million barrels of oil equivalent) and a high of 774 billion cubic feet equivalent (129 million barrels of oil equivalent) with a best estimate of 598 billion cubic feet equivalent (100 million barrels of oil equivalent) that includes over 40-per-cent condensate.
In addition, ECR, attributed to only 15 per cent of the company's 28,800 net acres, have been assigned a best estimate of 190 billion cubic feet equivalent (32 million barrels of oil equivalent) with a range from a low of 95 billion cubic feet equivalent (16 million barrels of oil equivalent) to a high of 245 billion cubic feet equivalent (41 million barrels of oil equivalent). Approximately 50 per cent of this best estimate or 16 million barrels of oil equivalent are natural gas liquids with condensate accounting for over 83 per cent of this amount. Using its April, 2013, price forecast, McDaniel's best estimate of ECR has a net present value discounted at 10 per cent before tax of $267-million.
The PR and ECR are in addition to the proved and probable reserves of 26 billion cubic feet equivalent (four million barrels of oil equivalent) as at Dec. 31, 2012, with a net present value discounted at 10 per cent before tax of $44-million.
The assessment of the resources by McDaniel includes discovered and undiscovered petroleum initially in place, prospective resources, a subset of undiscovered PIIP, and economic contingent resources, a subset of discovered PIIP. The evaluation was performed in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities and the Canadian Oil and Gas Evaluation Handbook and is effective April 1, 2013.
The evaluation conducted by McDaniel included detailed geological and petrophysical analysis of Questerre and adjacent industry Montney wells. It focused on the Upper and Middle Montney intervals. McDaniel assumed a Montney development plan based on an average of eight wells per section (four wells for each of the Upper and Middle Montney intervals). Total PIIP on average was estimated at approximately 60 billion cubic feet per section with recovery factors estimated to range from 20 per cent to 55 per cent with a best estimate of approximately 40 per cent.
The recoveries of natural gas liquids estimated by the resource assessment are based on the company securing shallow cut processing capacity. Questerre is currently in negotiations to secure processing, transportation and fractionating capacity for its production in the area.
Contingent resources were assigned to the company's acreage within a three-mile radius of a tested or producing Montney well. There is no certainty that any portion of the prospective resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
View rest of the news release to go www.questerre.com |
