Questerre Energy Corp. (
TSX: T.QEC,
Stock Forum) reported the results from its oil-drilling program in Pierson, Manitoba adjacent to its existing production in Antler, Saskatchewan.
The operator conducted a five well program targeting the Spearfish formation early in the third quarter.
According to the
Questerre Energy press release, the wells were drilled as short radius horizontals and completed with 16 stage fracs per well. They were drilled and completed on schedule and under budget.
This follows the drilling of two successful wells in the fourth quarter of 2012. Questerre holds a 35% interest in all these wells.
Over the first three days, the five wells produced at gross rates of over 1,000 barrels of oil per day or 350 barrels per day net to Questerre's interest.
Production over the first thirty days is expected to be approximately 700 barrels per day or approximately 240 barrels net to Questerre. Including these wells, the company's production is currently in excess of 1,000 barrels of oil equivalent per day.
“Our light oil netbacks were in excess of $85 per barrel in July,” said Michael Binnion, President and CEO. “At current production rates our operating cash flow before overheads is now over $2.0 million per month."
Questerre is leveraging its expertise gained through early exposure to shale and other non-conventional reservoirs.
On Monday morning, Questerre was up 3.7% and was trading at $1.11 a share. The company had a market cap of $261.2 million, based on 235.3 million shares outstanding.