Questerre Energy Corp. (
TSX: T.QEC,
Stock Forum) said that it has entered into an agreement with a subsidiary of
Pembina Pipeline Corp. (
TSX: T.PPL,
Stock Forum) for 20 million cubic feet per day of natural gas and associated liquids processing at a new propane-plus (C3+) shallow cut gas plant located in the Kakwa-Resthaven area in west central Alberta.
According to the
Questerre Energy press release, through its participation in the planned expansion of an existing facility currently processing Questerre's gas and liquids in the area, the company has secured capacity for 20 million cubic feet per day per day of raw natural gas production and associated liquids.
"This agreement is integral to develop our liquids-rich acreage in this area,” said Michael Binnion, President and CEO. “It gives us the ability to ramp up our natural gas production to a minimum of 20 million cubic feet per day. More importantly this firm capacity allows us to extract our associated natural gas liquids for further processing and marketing. To date, these have averaged over 140 barrels per million cubic feet from our existing wells consisting primarily of high value condensate."
The in-service date is scheduled for early to mid-2015 and is subject to receipt of regulatory and environmental approvals.
The company expects to conclude the remaining key transportation and marketing contracts for all product streams by the end of this year.
Questerre is an oil and gas company committed to being transparent and respectful.
On Thursday morning, Questerre was trading at $0.95 a share. The company had a market cap of $223.5 million, based on 235.3 million shares outstanding.