From pareto Subject: QEC Quebec remains on track, Montney significantly benefiting from higher oil prices Please see below for key takeaways from Questerre analyst meeting in Calgary with CEO Michael Binnion and CFO Jason D. Silva Quebec Process remains on track with final approval of regulations expected in early 2018 } Questerre remains positive to the likely outcome of the regulatory process in Quebec } The extended consolation period ends tomorrow 9 December with final approval of the regulations expected in January/February 2018 } Recent statements from the new Minister of Energy and Natural Resources (see our previous comments below) remains supportive of development of hydrocarbons with no indications of a changed view on fracking. However, local social acceptability will be required } This is in line with Questerres expectations and securing social acceptability will be the key focus in 2018 ahead of the pilot development } The Quebec Clean Gas initiative and support from local businesses (that today imports more expensive natural gas) will be important in this process. It should also be noted that Questerre previously had strong support in the less populated areas where it will seek to do the pilot development } We continue to be positive to the likely outcome of the regulatory process in Quebec, which if successful should trigger a significant reprising of Questerre Montney & Antler Significantly benefiting from higher oil prices } Montney is progressing as planned with strong economics at current oil prices. The company expects to drill a similar amount of wells next year but the partners could decide to bring in a second rig to accelerate production growth } Higher oil prices are also improving the likelihood of securing a partner or sale of the seven blocks (100% WI) adjacent to the JV acreage at attractive terms } We have a high risking discount on this acreage due to limited activity over the last couple of years and a transaction could potentially add NOK 1/share or more to our valuation of Questerre } The recent Antler transaction is seen as an opportunity to grow the production base at a low cost. The acquisition has an indicated payback of around three years at current oil prices, which is particularly attractive considering the low decline and limited investments needed at the field } We have a BUY recommendation and TP NOK 11 on QEC (TP likely to be revised once the regulations in Quebec are finalized)