News -Beaver River Re-entry A-5 well
Aug 27, 2008 00:15 ET
Questerre Energy Corporation: Liard Shale Gas Test Commenced by QEC and TSU
CALGARY, ALBERTA--(Marketwire - Aug. 27, 2008) -
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Questerre Energy Corp (TSX:QEC)(OSLO:QEC) announced today that joint operations are under way with its partner Transeuro to further test the deeper shale's in the Liard basin within the Company's Beaver River acreage. These shale's are Mississippian in age and are located approximately 100 km to the East of the Horn River shale play.
Michael Binnion commented "We have great control of land and infrastructure in this area. Expertise we have gained from our Quebec shale play has allowed us to re-evaluate our past efforts. We believe we have developed a predictive model which allows us to better target our completions to productive shale's. The very high gas in place numbers and promising production results from our two earlier wells in the Liard shale's make this test very interesting."
There are two existing producing tight gas/shale gas wells (A2 and A7) which Transeuro and Questerre both have 50% ownership and that Questerre has operated for over two years with relatively low decline rates. Compression was recently added to A2 with very promising initial results. Production from the A2 increased to over 4.0 mmcf per day which is near its original peak production rate of 4.5mm per day. The continued good production performance of these shallower wells together with recent work by QEC and Transeuro indicate there is also strong potential for the deeper Devonian shale's. Gas in place numbers for this area for the Mississippian siltstone/shale sequence are confirmed at over 1 tcf per section based on independent word by Nederland and Sewel. The Company has a 50% interest in 35 sections with take away capacity in place.
The current operation is a re-entry of the A5 well. Three intervals will be perforated and minor stimulations will be conducted to evaluate reservoir and rock mechanical properties prior to an inflow test. The gross thickness of these prospective deeper shale's that are confirmed with good gas shows is in excess of 500m and these tests will assist in identifying the net productive reservoir intervals. If the results of the inflow tests are promising a full stimulation will be carried out in a future operation to test for commercial flow rates.
Questerre is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development oil and gas projects in Canada.
This news release contains forward-looking information. Implicit in this information are assumptions regarding commodity pricing, production, royalties and expenses, that, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in the Company's plans, commodity prices, equipment availability, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee made by the Company that the actual results achieved will be the same as those forecasted herein.
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 and 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.
This news release does not constitute an offer of securities for sale in the United States. These securities may not be offered or sold in the United States absent registration or an available exemption from registration under the United States Securities Act of 1933, as amended.