Post by
nozzpack on Jan 06, 2022 7:39am
Compensation Value To Be Compensated
I have already described the cost recovery value including accrued interest to be in excess of $150 million.
But, then there must be compensation...according to international and Quebec Law..for lost future earnings.
The NPV of our Utica shale is $824 million US which is about $1.1 billion in CAD.
Discounted NPV is a proxy for net future cash flows, after removing development, capex and sustaining capital.
So, we will be requesting close to $1 billion when, as is our right, to seek legal compensation for future earnings from the world class Utica shale.
That Questerre has a submission into the Quebec Govt about recycling carbon to be carbon neutral as part of the development of Utica removes any objection that this Govt might have about not developing Utica.
In other words, the expropriation alluded to by the Quebec Govt will not stand the test of court laws of Quebec.
It cannot win.
The actual compensation will probably be negotiated but it's my view that the Quebec Govt will approve the development of Utica shale , using the carbon neutral part of the development as its rationale that such development will not impair Quebec's carbon neutral position .
In my opinion, get ready for news over the next while that will see us move above $1 as an initial market response to development of Utica..
Comment by
darb on Jan 06, 2022 8:42am
I would like to agree with you, but Quebec is the most corrupt jurisdiction in Canada. You can never say " cannot win"'.
Comment by
nozzpack on Jan 06, 2022 9:17am
I agree with your latter opinion . However, Questerre has substantial support from the local population for the proposed carbon neutral to developing Utica plus there remains the legal court case ruling. In the case of violation of..illegal..of legal rights, Questerre has other options to force compensation. So, it's difficult to see no asset compensation for future earnings.