Questerre reports first quarter 2024 results
11 Mai 2024 - 12:30AM
Questerre Energy Corporation (“Questerre” or the “Company”)
(TSX,OSE:QEC) reported today on its financial and operating results
for the quarter ended March 31, 2024.
Michael Binnion, President and Chief Executive
Officer of Questerre, commented, “During the quarter, we applied
for a pilot project under Bill 21 in Quebec. In addition to a
comprehensive test of the carbon storage potential on our lands, we
propose to pilot zero-emissions hydrogen production. Following the
Government’s recent investment in the carbon capture and storage
space, we are optimistic this could be an integral part of their
strategy to meeting emissions reduction targets.
On the legal front, a pre-trial ruling on our
legal claim suspended key provisions of Bill 21 pending a hearing
on the merits of our case. The Government has since been granted
leave to appeal the ruling.”
He added, “Carbon capture and storage is also
important to our plans to build assets outside Quebec. We are
exploring opportunities to develop zero-emissions projects using
carbon storage with First Nations in Alberta.”
Highlights
- Quebec Superior Court grants stay on key provisions of Bill 21
and Government granted leave to appeal
- Questerre applies for carbon storage and zero-emissions
hydrogen pilot in Quebec
- Average daily production of 1,664 boe per day with adjusted
funds flow from operations of $3 million
Reflecting natural declines, production volumes
decreased nominally in the first quarter of 2024 to 1,664 boe/d
from 1,790 boe/d last year. Production volumes are expected to
continue their natural decline until the three (0.75 net) wells
drilled this year at Kakwa are completed and tied-in later this
year. For the quarter, petroleum and natural gas revenue reflected
lower production volumes and realized commodity prices and totaled
$9.0 million in the period compared to $10.5 million last year. The
Company generated a net loss of $0.2 million for the quarter (2023:
$0.9 million net income) and adjusted funds flow from operations of
$3.0 million compared to 4.3 million last year.
The Company incurred capital expenditures of
$2.6 million for the period (2023: $3.2 million) and reported a
working capital surplus of $30.2 million as of March 31, 2024
(2023: $25.1 million).
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.
Advisory Regarding Forward-Looking
Statements
This news release contains certain statements
which constitute forward-looking statements or information
(“forward-looking statements”) including the Company’s views on the
inclusion of carbon capture and sequestration as an integral part
of the Government of Quebec’s plans to meet emission reduction
targets and its expectation on the timing of production increases
from new wells drilled at Kakwa.
Forward-looking statements are based on several
material factors, expectations, or assumptions of Questerre which
have been used to develop such statements and information, but
which may prove to be incorrect. Although Questerre believes that
the expectations reflected in these forward-looking statements are
reasonable, undue reliance should not be placed on them because
Questerre can give no assurance that they will prove to be correct.
Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Further, events or circumstances may cause actual
results to differ materially from those predicted as a result of
numerous known and unknown risks, uncertainties, and other factors,
many of which are beyond the control of the Company, including,
without limitation: the implementation of Bill 21 by the Government
of Quebec and certain other risks detailed from time-to-time in
Questerre's public disclosure documents. Additional information
regarding some of these risks, expectations or assumptions and
other factors may be found under in the Company's Annual
Information Form for the year ended December 31, 2023, and other
documents available on the Company’s profile at www.sedar.com. The
reader is cautioned not to place undue reliance on these
forward-looking statements. The forward-looking statements
contained in this news release are made as of the date hereof and
Questerre undertakes no obligations to update publicly or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, unless so required by
applicable securities laws.
Certain information set out herein may be
considered as “financial outlook” within the meaning of applicable
securities laws. The purpose of this financial outlook is to
provide readers with disclosure regarding Questerre’s reasonable
expectations as to the anticipated results of its proposed business
activities for the periods indicated. Readers are cautioned that
the financial outlook may not be appropriate for other
purposes.
(1) For the three-month period ended March 31,
2024, liquids production including light crude and natural gas
liquids accounted for 978 bbl/d (2023: 1,022 bbl/d) and natural gas
including conventional and shale gas accounted for 4,114 Mcf/d
(2023: 4,607 Mcf/d).
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 the conversion
ratio of one barrel to six thousand cubic feet 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. Given that the value ratio based on the current price
of crude oil as compared to natural gas is significantly different
from the energy equivalent of 6:1, utilizing a conversion on a 6:1
basis may be misleading as an indication of value.
This press release contains the terms “adjusted
funds flow from operations” and “working capital surplus” which are
non-GAAP terms. Questerre uses these measures to help evaluate its
performance.
As an indicator of Questerre’s performance,
adjusted funds flow from operations should not be considered as an
alternative to, or more meaningful than, cash flows from operating
activities as determined in accordance with GAAP. Questerre’s
determination of adjusted funds flow from operations may not be
comparable to that reported by other companies. Questerre considers
adjusted funds flow from operations to be a key measure as it
demonstrates the Company’s ability to generate the cash necessary
to fund operations and support activities related to its major
assets.
|
|
Three Months Ended
March 31, |
($ thousands) |
|
|
2024 |
|
|
|
2023 |
|
Net cash used in operating activities |
|
$ |
2,628 |
|
|
$ |
4,648 |
|
Change in non-cash operating working capital |
|
|
345 |
|
|
|
(371 |
) |
Adjusted Funds Flow from Operations |
|
$ |
2,973 |
|
|
$ |
4,277 |
|
Working capital surplus is a non-GAAP measure
calculated as current assets less current liabilities excluding
risk management contracts and lease liabilities.
For further information, please contact:
Questerre Energy Corporation
Jason D’Silva, Chief Financial Officer
(403) 777-1185 | (403) 777-1578 (FAX) |Email: info@questerre.com
Questerre Energy (TSX:QEC)
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