Questerre Energy Corporation (“Questerre” or the “Company”) (TSX,OSE:QEC) reported today on its financial and operating results for the third quarter ended September 30, 2024.
Michael Binnion, President and Chief Executive Officer of Questerre commented, “The challenges for the Quebec energy markets continue to evolve. Bill 69, requiring an integrated electricity and gas management plan, could renew interest in natural gas as a transition fuel in Quebec. During the public consultation process this quarter, we advocated for local natural gas production as an essential part of the energy mix through the Quebec Energy Association. With the technical review by the Quebec Ministry of Economy, Innovation and Energy complete, our application for a carbon storage pilot is advancing through the approval process. Carbon capture could contribute to meeting Quebec’s climate goals with the on-going consumption of natural gas.”
He added, “We also committed to developing our Kakwa North acreage this quarter. A three (1.5 net) well program started in October. We expect them to be completed early next year and on-stream by the second quarter. This follows the three (0.75 net) well program on our Kakwa Central acreage this spring with the wells coming on production late in the third quarter.”
Highlights
- Expert witness report filed for legal claim in Quebec
- Three (1.5 net) well program approved at Kakwa North and three (0.75 net) wells tied-in at Kakwa Central
- Average daily production of 1,913 boe per day with adjusted funds flow from operations of $3.4 million
Consistent with prior periods, Kakwa continued to account for 80% of corporate production. With three (0.75 net) wells at Kakwa Central brought on production late in the quarter, production increased over the same period last year but declined year to date over the prior year. For the third quarter, daily production averaged 1,913 boe/d (2023: 1,830 boe/d) and for the nine months ended September 30, 2024, it averaged 1,712 boe/d (2023: 1,866 boe/d).
The higher production volumes were offset by the lower commodity prices in the current quarter. For the quarter, petroleum and natural gas sales totaled $9.5 million compared to $10.7 million last year and $27.3 million year to date compared to $32 million in the prior year. This contributed to adjusted funds flow from operations of $3.4 million (2023: $3 million) in the quarter and $10.9 million for the first three quarters of the year (2023: $12.6 million).
The lower revenue also contributed to a net loss of $0.3 million for the quarter (2023: $0.3 million loss). The Company reported a net profit of $0.8 million (2023: $2.3 million) for the nine months ended September 30, 2024. Capital expenditures in the quarter were $3.4 million (2023: $0.9 million) and $13.1 million year to date (2023: $6.6 million).
As at September 30, 2024, effectively no material amounts were drawn on the facility and the Company held unrestricted cash and term deposits of $35.9 million. The Company had a net working capital surplus of $27.6 million (2023: $30.2 million surplus).
The term "adjusted funds flow from operations" and “working capital surplus” are non-IFRS measures. Please see the reconciliation elsewhere in this press release.
Questerre 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. We believe we can successfully transition our energy portfolio. With new clean technologies and innovation to responsibly produce and use energy, we can sustain both human progress and our natural environment.
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.
