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CALGARY, Alberta, April 06, 2018 (GLOBE NEWSWIRE) -- Questerre Energy Corporation (“Questerre” or the “Company”)
(TSX:QEC) (OSE:QEC) reported on the progress of the internal feasibility study for its oil shale project in Jordan.
The Company has recently engaged Hatch Ltd. (“Hatch”), a global engineering firm, to integrate and support its
internal work on the technical and economic feasibility of this project.
Michael Binnion, President and Chief Executive Officer, commented, “This is an important milestone. Our
preliminary feasibility work has been completed. It has not identified any red flags or unexpected technical challenges. It also
suggests this project could be economic at today’s oil prices. We are looking forward to the results of the Hatch integration study
later this summer to endorse our internal work.”
Commenting on next steps Mr. Binnion added, “Depending on the results of this integration study, we would move
to pre-FEED engineering. These results and the subsequent pre-FEED and FEED engineering will form part of the proposed work program
for the pre-development phase of a future concession agreement with the Jordanian government.”
Earlier this year, the Company completed a review of the last of its nine studies covering all four aspects of
the production of crude oil from its project in Jordan. These include mining and feed preparation, retorting, power, including
utilities and infrastructure, and marketing and refining. The studies were completed by independent engineering firms including
Hatch to develop technical and cost-effective solutions for these processes. Due to the size of the existing Jordanian refining
infrastructure and the market for crude products in Jordan, the Company has included the costs to upgrade the produced crude oil to
finished products including gasoline and diesel. Hatch completed four of the nine studies and will integrate all the studies into
an independent assessment. The design basis for this assessment will be an initial project capable of sustaining production of
50,000 bbls/d.
The feasibility study follows the assessment of the oil shale resource completed by an independent qualified
resource evaluator, Millcreek Mining Group, in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and
Gas Activities of the Canadian Securities Administrators (“NI 51-101”) and the Canadian Oil and Gas Evaluation Handbook (“COGE
Handbook”) (the “Resource Assessment”). The Resource Assessment estimates a best estimate of Discovered Petroleum Initially In
Place (“DPIIP”) of between 7.8 billion and 12.2 billion barrels. The Resource Assessment was prepared in accordance with NI 51-101
and the COGE Handbook with an effective date of October 1, 2016.
DPIIP was the most specific assignable category of resources at the time of the Resource Assessment given the
preliminary nature of the Resource Assessment, the nature of recovery of the hydrocarbons by means of mining and retorting and that
a program of work to determine commercial viability using established technology had not yet been completed. In addition, as a
result of the preliminary nature of the Resource Assessment, it did not contain any estimates regarding the timing or cost to
obtain commercial development. The accuracy of resource estimates is, in part, a function of the quality and quantity of available
data and of engineering and geological interpretation and judgment. Given the data available at the time the Resource Assessment
was prepared, the estimates presented therein are considered reasonable. The availability of additional data and analysis, after
the date of the estimates, may necessitate revisions. These revisions may be material. There is no certainty that any portion of
the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion
of the resources.
For more information, including without limitation a description of the Jordan oil shale project, the low and
high estimates and the significant positive and negative factors in respect of the resource estimates, please see the Company’s
press release dated October 27, 2016 and its Annual Information Forms available on the Company’s website at www.questerre.com and
SEDAR at www.sedar.com.
Hatch Ltd. is a leading global consulting, engineering, technology, information systems and project management
organization. Hatch has an extensive and major client base with a project portfolio exceeding C$40 billion. Hatch provides a full
range of technology driven, valued added solutions and services to clients in the mining, minerals, metals, manufacturing,
infrastructure and energy sectors.
Questerre Energy Corporation is leveraging its expertise gained through early exposure to shale and other
non-conventional reservoirs. The Company has base production and reserves in the tight oil Bakken/Torquay of southeast
Saskatchewan. It is bringing on production from its lands in the heart of the high-liquids Montney shale fairway. It is a
leader on social license to operate issues for its Utica shale gas discovery in the St. Lawrence Lowlands, Quebec. It is pursuing
oil shale projects with the aim of commercially developing these significant resources.
Questerre is a believer that the future success of the oil and gas industry depends on a balance of economics,
environment and society. We are committed to being transparent and are respectful that the public must be part of making the
important choices for our energy future.
For further information, please contact:
Questerre Energy Corporation
Jason D’Silva, Chief Financial Officer
(403) 777-1185 | (403) 777-1578 (FAX) |Email: info@questerre.com
Advisory Regarding Forward-Looking Statements
This news release contains certain statements which constitute forward-looking statements or information
(“forward-looking statements”) including the discovery of resources in respect of the Jordan oil shale project and the commercial
viability of producing any resources so discovered, the Company’s opinion that its preliminary feasibility work has not identified
any unexpected technical challenges, that preliminary feasibility work suggests the project could be economic at current oil
prices, the Company’s expectations of the timing and results from the Hatch integration study, the timing and decision to proceed
to pre-FEED and FEED engineering, the Company’s plans to include this in the pre-development phase of a future concession agreement
with the Jordanian government and its plans to apply for this concession agreement.
Forward-looking statements are based on a number of material factors, expectations or assumptions of Questerre
which have been used to develop such statements and information, but which may prove to be incorrect. Although Questerre believes
that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them
because Questerre can give no assurance that they will prove to be correct. Since forward-looking statements address future
events and conditions, by their very nature they involve inherent risks and uncertainties. The Company choose to base their study
on a 50,000 barrel per day project, as that is the amount of production required to justify the cost of upgrading the product
produced by the Company, such cost being factored into such feasibility study. There is nothing to indicate that this level of
production will actually be achieved in respect of the Jordan oil shale project, as there is no history of production and no
reserves have been attributed to such property. Although the Company believes that this assumption is reasonable in light of
the current information available to it at this time, there is a significant risk that such level of production will not be
achieved and that the estimated total capital and operating costs set forth above will not be achieved.
Further, events or circumstances may cause actual results to differ materially from those predicted as a result
of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company,
including, without limitation: whether the Company's exploration and development activities respecting its prospects will be
successful or that material volumes of petroleum and natural gas reserves will be encountered, or if encountered can be produced on
a commercial basis; the ultimate size and scope of any hydrocarbon bearing formations on its lands; that drilling operations on its
lands will be successful such that further development activities in these areas are warranted; that Questerre will continue to
conduct its operations in a manner consistent with past operations; results from drilling and development activities will be
consistent with past operations; the general stability of the economic and political environment in which Questerre operates;
drilling results; field production rates and decline rates; the general continuance of current industry conditions; the timing and
cost of pipeline, storage and facility construction and expansion and the ability of Questerre to secure adequate product
transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and
environmental matters in the jurisdictions in which Questerre operates; and the ability of Questerre to successfully market its oil
and natural gas products; changes in commodity prices; changes in the demand for or supply of the Company's products; unanticipated
operating results or production declines; changes in tax or environmental laws, changes in development plans of Questerre or by
third party operators of Questerre's properties, increased debt levels or debt service requirements; inaccurate estimation of
Questerre's oil and gas reserve and resource volumes; limited, unfavourable or a lack of access to capital markets; increased
costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in
Questerre's public disclosure documents. Additional information regarding some of these risks, expectations or assumptions
and other factors may be found under in the Company's Annual Information Form for the year ended December 31, 2017 and other
documents available on the Company’s profile at www.sedar.com. The reader is cautioned not to place undue reliance on these
forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof and
Questerre undertakes no obligations to update publicly or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, unless so required by applicable securities laws.
Resource Definitions
Resources encompasses all petroleum quantities that originally existed on or within the earth's crust in
naturally occurring accumulations, including Discovered and Undiscovered (recoverable and unrecoverable) plus quantities already
produced. "Total resources" is equivalent to "Total Petroleum Initially In Place". Resources are classified in the following
categories:
Total Petroleum Initially In Place ("TPIIP") is that quantity of petroleum that is estimated to exist originally
in naturally occurring accumulations. It includes that quantity of petroleum that is estimated, as of a given date, to be contained
in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered.
Discovered Petroleum Initially In Place ("DPIIP") is that quantity of petroleum that is estimated, as of a given
date, to be contained in known accumulations prior to production. The recoverable portion of discovered petroleum initially in
place includes production, reserves, and Contingent Resources; the remainder is unrecoverable.
Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially
recoverable from known accumulations using established technology or technology under development but which are not currently
considered to be commercially recoverable due to one or more contingencies. Economic Contingent Resources (“ECR”) are those
contingent resources that are currently economically recoverable.
Undiscovered Petroleum Initially In Place ("UPIIP") is that quantity of petroleum that is estimated, on a given
date, to be contained in accumulations yet to be discovered. The recoverable portion of undiscovered petroleum initially in place
is referred to as "prospective resources" and the remainder as "unrecoverable."
Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially
recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an
associated chance of discovery and a chance of development.
Unrecoverable is that portion of DPIIP and UPIIP quantities which is estimated, as of a given date, not to be
recoverable by future development projects. A portion of these quantities may become recoverable in the future as commercial
circumstances change or technological developments occur; the remaining portion may never be recovered due to the physical/chemical
constraints represented by subsurface interaction of fluids and reservoir rocks. Uncertainty Ranges are described by the Canadian
Oil and Gas Evaluation Handbook as low, best, and high estimates for reserves and resources as follows:
Low Estimate: This is considered to be a conservative estimate of the quantity that will actually be recovered.
It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there
should be at least a 90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate.
Best Estimate: This is considered to be the best estimate of the quantity that will actually be recovered. It is
equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic
methods are used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or
exceed the best estimate.
High Estimate: This is considered to be an optimistic estimate of the quantity that will actually be recovered.
It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used,
there should be at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high
estimate.
Certain resource estimate volumes disclosed herein are arithmetic sums of multiple estimates of DPIIP, which
statistical principles indicate may be misleading as to volumes that may actually be recovered. Readers should give attention to
the estimates of individual classes of resources and appreciate the differing probabilities of recovery associated with each class
as explained under this Resource Definitions section.