Hele rapporten her:
http://www.questerre.com/en/investorcenter/financial-reports/2010/?utm_source=Questerre+Energy+Corporation&utm_campaign=bab86a280e-Questerre_publishes_2010_Annual_AIF3_24_2011&utm_medium=email
Mike Binnion kommentar fra hans blog i morges:
"The path to commercializing our Utica shale gas discovery took some winding turns in 2010.
The initial results from our pilot program were better than we expected. Our biggest challenge for the year was to ensure we were well enough financed to keep up with commercialization of our discovery. This was the focus of management and the Board of Directors. We were successful in meeting our goal but the target moved. With the heightened environmental sensitivity following the BP oil spill in the Gulf of Mexico, social acceptability proved more challenging than we anticipated.
As we navigate the developing regulatory landscape in Québec, we are looking at expanding our portfolio with a near- term focus on oil. We had excellent results in Antler last year and plan to actively expand this area in 2011. Leveraging our expertise, we are also looking at new high-impact projects to complement the multi-Tcf potential of Québec.
Highlights
* Initial horizontal wells for the Utica shale pilot program in the Lowlands met or exceeded expectations
* Establishing new hydrocarbon legislation, social acceptability and a local service sector has delayed commercialization of the Utica shale
* Concluded pipeline agreement and preliminary work for a 3-D seismic program for the commercial demonstration project targeting the St. Edouard area in the Lowlands
* Successful drilling program in Antler, Saskatchewan contributes to growing light oil reserves
* Completed $128 million equity issue for early commercialization of Utica shale in Québec
* Improved oil weighting and crude oil prices generated cash flow from operations of $4.74 million with average daily production of 619 boe/d
* Strengthened balance sheet with $136 million in positive working capital and no debt
St. Lawrence Lowlands, Québec
The importance of social acceptability and new regulations as a requirement for commercial development materialized earlier than we foresaw.
The horizontal well program we began with our partner in late 2009 would, subject to results, identify the locations for our commercial demonstration project. This would include a multi-well pad and a tie-in to the local distribution system. Our plans were to have first gas on by mid-2011.
Everything changed for the oil and gas industry in North America in the aftermath of the BP oil spill. The absence of a local industry in the province only served to amplify these concerns. In light of these concerns and the political situation, the Government subsequently abandoned its plans for introducing hydrocarbon legislation in the fall and announced it had commissioned the BAPE to propose a framework for shale gas development in Québec.
Published in early 2011, the BAPE report has mandated a Strategic Environmental Assessment for shale gas. While this is not uncommon for large scale projects in international jurisdictions, we expected that the numerous successful shale gas developments across Canada and the United States could have been a valuable precedent for environmental, regulatory and fiscal legislation in Québec.
We were disappointed that our public advocacy efforts that began well in advance of the BAPE were not more successful.
From creating resources that included a French video on shale gas development and fact sheets, we took every opportunity to educate the public in Québec about a proven and well established industry. This included a presence in the provincial, national and social media to address the myths about shale gas from US based political groups that crossed the border.
We also met with government ministries, municipal officials and held open houses with their constituents primarily on the south shore of the St. Lawrence River. Our primary goal was to communicate the direct economic benefits of local jobs and increased activity that would accompany development.
These communication efforts were successful, albeit on a small scale. Following an open house and subsequent meetings with the residents, we were very encouraged by the over 90% support from landowners in the St. Edouard area for our 3-D seismic program.
We were pleased to see the Ministry of Finance reiterate our messages on the economic benefits. In their publication on a new royalty regime for shale gas, they estimate over 11,000 new jobs could be created annually and royalties could add over $400 million annually to government revenue.
The recently announced royalty regime is designed to be competitive with the existing regimes for established conventional production in Alberta and British Columbia. With existing capital costs, reserves and commodity prices, industry cannot generate economic returns under this new royalty regime. To address some of these concerns, the regime also includes an incentive program similar to the net profit royalty scheme in BC with progressive royalties beginning at 2% for specific zones within the licenses. All else being equal, industry should be able to make a profit under this scheme. We continue to believe that stability and clarity in the royalty regime will be a more meaningful incentive to stimulating investment.
Our plans for this year in Québec are to participate constructively in the Assessment to the extent we are allowed. We expect to use the next 18-24 months to advance the pilot projects, including the completion of the two horizontal wells currently scheduled for this year by the operator, to increase understanding of the Utica shale and of the proven and well established technologies we use. We will seek recognition from the Government for the capital we have invested, the risks we have taken and delayed timelines during this Assessment.
Antler, Saskatchewan
We made some significant progress with our light oil play in Antler.
Refinements in drilling and completion techniques as well as improved production practices and other operating efficiencies contributed to the following:
* A 15%+ reduction in drilling, completion and tie-in costs to approximately $1.8 million per well
* Stabilized initial production rates increased to over 60 bbls/day on average with a less pronounced decline
* A 25%+ reduction in operating costs per barrel to approximately $10 per barrel
Late in the year, we added approximately 21,000 net acres of land in an area we believe has similar geology to our Antler area. We also acquired close to 1,700 net acres of land in Manitoba in the heart of the Spearfish light oil play. Our total acreage is now 45,000 acres of which 42,800 acres are undeveloped.
An independent evaluation of the proved and probable reserves at Antler estimates the NPV-10% at $60 million. As we grow this area, we will continue to increase our inventory of over two years of infill drilling locations in the pool.
We are very optimistic that we will be able to build these assets to be an important core area for Questerre. These high margin light oil assets also represent a potential source of future capital for our high impact projects.
Outlook
I am proud of the core competency we have developed in exploring and producing unconventional oil and gas. Over the next two years we expect the Québec team to have limited duty as a non-operated partner during the environmental assessment. We have thus redeployed our Québec team to create a new ventures team.
I am pleased that we have also hired Dr. Basim Faraj to join our new ventures team. Dr. Faraj is a geochemist that holds a Ph.D. in organic and inorganic geochemistry from the University of Queensland, Australia and is an early expert in shale plays. The team has a mandate to very selectively look for early stage shale opportunities.
The Utica shale in Québec is one of the most significant resource discoveries in North America. It will take longer than we planned or expected to come to fruition. In the meantime, we will diversify into unconventional oil. We have made a good start with our project in Antler.
Michael Binnion
President and Chief Executive Officer"
http://www.questerre.com/en/investorcenter/financial-reports/2010/?utm_source=Questerre+Energy+Corporation&utm_campaign=bab86a280e-Questerre_publishes_2010_Annual_AIF3_24_2011&utm_medium=email
Mike Binnion kommentar fra hans blog i morges:
"The path to commercializing our Utica shale gas discovery took some winding turns in 2010.
The initial results from our pilot program were better than we expected. Our biggest challenge for the year was to ensure we were well enough financed to keep up with commercialization of our discovery. This was the focus of management and the Board of Directors. We were successful in meeting our goal but the target moved. With the heightened environmental sensitivity following the BP oil spill in the Gulf of Mexico, social acceptability proved more challenging than we anticipated.
As we navigate the developing regulatory landscape in Québec, we are looking at expanding our portfolio with a near- term focus on oil. We had excellent results in Antler last year and plan to actively expand this area in 2011. Leveraging our expertise, we are also looking at new high-impact projects to complement the multi-Tcf potential of Québec.
Highlights
* Initial horizontal wells for the Utica shale pilot program in the Lowlands met or exceeded expectations
* Establishing new hydrocarbon legislation, social acceptability and a local service sector has delayed commercialization of the Utica shale
* Concluded pipeline agreement and preliminary work for a 3-D seismic program for the commercial demonstration project targeting the St. Edouard area in the Lowlands
* Successful drilling program in Antler, Saskatchewan contributes to growing light oil reserves
* Completed $128 million equity issue for early commercialization of Utica shale in Québec
* Improved oil weighting and crude oil prices generated cash flow from operations of $4.74 million with average daily production of 619 boe/d
* Strengthened balance sheet with $136 million in positive working capital and no debt
St. Lawrence Lowlands, Québec
The importance of social acceptability and new regulations as a requirement for commercial development materialized earlier than we foresaw.
The horizontal well program we began with our partner in late 2009 would, subject to results, identify the locations for our commercial demonstration project. This would include a multi-well pad and a tie-in to the local distribution system. Our plans were to have first gas on by mid-2011.
Everything changed for the oil and gas industry in North America in the aftermath of the BP oil spill. The absence of a local industry in the province only served to amplify these concerns. In light of these concerns and the political situation, the Government subsequently abandoned its plans for introducing hydrocarbon legislation in the fall and announced it had commissioned the BAPE to propose a framework for shale gas development in Québec.
Published in early 2011, the BAPE report has mandated a Strategic Environmental Assessment for shale gas. While this is not uncommon for large scale projects in international jurisdictions, we expected that the numerous successful shale gas developments across Canada and the United States could have been a valuable precedent for environmental, regulatory and fiscal legislation in Québec.
We were disappointed that our public advocacy efforts that began well in advance of the BAPE were not more successful.
From creating resources that included a French video on shale gas development and fact sheets, we took every opportunity to educate the public in Québec about a proven and well established industry. This included a presence in the provincial, national and social media to address the myths about shale gas from US based political groups that crossed the border.
We also met with government ministries, municipal officials and held open houses with their constituents primarily on the south shore of the St. Lawrence River. Our primary goal was to communicate the direct economic benefits of local jobs and increased activity that would accompany development.
These communication efforts were successful, albeit on a small scale. Following an open house and subsequent meetings with the residents, we were very encouraged by the over 90% support from landowners in the St. Edouard area for our 3-D seismic program.
We were pleased to see the Ministry of Finance reiterate our messages on the economic benefits. In their publication on a new royalty regime for shale gas, they estimate over 11,000 new jobs could be created annually and royalties could add over $400 million annually to government revenue.
The recently announced royalty regime is designed to be competitive with the existing regimes for established conventional production in Alberta and British Columbia. With existing capital costs, reserves and commodity prices, industry cannot generate economic returns under this new royalty regime. To address some of these concerns, the regime also includes an incentive program similar to the net profit royalty scheme in BC with progressive royalties beginning at 2% for specific zones within the licenses. All else being equal, industry should be able to make a profit under this scheme. We continue to believe that stability and clarity in the royalty regime will be a more meaningful incentive to stimulating investment.
Our plans for this year in Québec are to participate constructively in the Assessment to the extent we are allowed. We expect to use the next 18-24 months to advance the pilot projects, including the completion of the two horizontal wells currently scheduled for this year by the operator, to increase understanding of the Utica shale and of the proven and well established technologies we use. We will seek recognition from the Government for the capital we have invested, the risks we have taken and delayed timelines during this Assessment.
Antler, Saskatchewan
We made some significant progress with our light oil play in Antler.
Refinements in drilling and completion techniques as well as improved production practices and other operating efficiencies contributed to the following:
* A 15%+ reduction in drilling, completion and tie-in costs to approximately $1.8 million per well
* Stabilized initial production rates increased to over 60 bbls/day on average with a less pronounced decline
* A 25%+ reduction in operating costs per barrel to approximately $10 per barrel
Late in the year, we added approximately 21,000 net acres of land in an area we believe has similar geology to our Antler area. We also acquired close to 1,700 net acres of land in Manitoba in the heart of the Spearfish light oil play. Our total acreage is now 45,000 acres of which 42,800 acres are undeveloped.
An independent evaluation of the proved and probable reserves at Antler estimates the NPV-10% at $60 million. As we grow this area, we will continue to increase our inventory of over two years of infill drilling locations in the pool.
We are very optimistic that we will be able to build these assets to be an important core area for Questerre. These high margin light oil assets also represent a potential source of future capital for our high impact projects.
Outlook
I am proud of the core competency we have developed in exploring and producing unconventional oil and gas. Over the next two years we expect the Québec team to have limited duty as a non-operated partner during the environmental assessment. We have thus redeployed our Québec team to create a new ventures team.
I am pleased that we have also hired Dr. Basim Faraj to join our new ventures team. Dr. Faraj is a geochemist that holds a Ph.D. in organic and inorganic geochemistry from the University of Queensland, Australia and is an early expert in shale plays. The team has a mandate to very selectively look for early stage shale opportunities.
The Utica shale in Québec is one of the most significant resource discoveries in North America. It will take longer than we planned or expected to come to fruition. In the meantime, we will diversify into unconventional oil. We have made a good start with our project in Antler.
Michael Binnion
President and Chief Executive Officer"
