For de myggeinteresserede er Questerre's fulde årsrapport på gaden.
http://www.questerre.com/en/investorcenter/financial-reports/2008/
Her er "President's message"
PRESIDENT’S MESSAGE
2008 was a remarkable year for Questerre.
Our business plan to find a large gas field onshore Canada came to fruition with a giant shale gas discovery in Quebec. Currently in pre-pilot commercialization, we believe this discovery will ultimately become a major shale play in North America. Shale gas is creating historic changes in North American energy markets and, through our discovery in Quebec, Questerre is participating in these changes.
Although eclipsed by the success in Quebec, we had good results with our entire portfolio during the year. We generated cash flow of over $17 million on average daily production of 1,178 boe/d and exited the year with no debt, positive cash flow and working capital in excess of $54 million, consisting mainly of cash and equivalents. This financial strength will be invaluable in current markets, allowing us to fully evaluate our discovery in Quebec without any need for additional capital.
Highlights
• Major shale gas discovery in Quebec
• Early success with Liard shale gas play at Beaver River
• Continued growth in conventional assets - successful drilling programs conducted in Antler and Greater Sierra
• Cash flow of over $17 million reflecting improved light oil weighting and higher commodity prices
• Replaced over 150% of production and increased proved plus probable reserves by 24%
• Increased financial strength with net working capital of over $54 million at year end
St. Lawrence Lowlands, Quebec
The Yamaska test results released in early April provided the stimulus to accelerate appraisal of the shale gas potential of the Lowlands. These wells confirmed the key technical characteristics of the Utica shale as a viable resource play with multi-Tcf potential, in particular, the ability to be successfully hydraulically fractured.
Multi-well programs were subsequently announced by our partners, Forest and Talisman, to test the Utica, the shallower Lorraine shale and the deeper Trenton Black-River group. Fracability of the Utica shale was further substantiated by exceptional results from Gentilly #1. The stimulation of a single interval by Talisman in this vertical well yielded sustained rates of over 800 mcf/d on an 18-day test.
We believe the stabilized flow rates from Gentilly #1 and rates between 100-800 mcf/d from prototype horizontal wells by Forest are remarkable. When measured against more established shale plays, these results place us well up the first year learning curve for a new shale play. The next steps involve analyzing the technical data from these initial wells, adding further results and testing one variable at a time to establish a commercially successful completion design.
Forest and Questerre have completed an initial analysis of the extensive data gathered on the pre-pilot horizontal wells. We are currently planning to re-enter and stimulate one of these wells this summer. We have also been working with Talisman on a plan to drill pre-pilot test wells in advance of a multi-well commercial pilot pad. These wells will likely be multi-stage fractured horizontals situated near existing vertical wells. This would allow for microseismic monitoring of the fracs to verify the stimulated rock volume and indirectly, recoverable reserves.
Recent market conditions have caused a more cautious approach which is slowing the original timeline for commercial development. Our partners continue to proceed with further work in the Lowlands to develop optimal drilling and completion techniques. We are confident that with the scale of this project, the potential for stacked shale plays, and a competitive fiscal environment it remains a priority for all participants.
Beaver River Field
The shale expertise gleaned from Quebec gave us new ideas to test the Liard shales at Beaver River.
A focus on mechanical rock properties led us to re-enter the A-5 well and test a brittle interval at the top one of the three organic-rich shale sequences. Initial production rates of approximately 5 mmcf/d are encouraging; however, an extensive testing period is necessary to verify contribution from the shale interval along with further technical analysis.
We were disappointed with the results from the A-8 Nahanni well as it represented over six years’ technical work. We did, however, successfully mitigate the financial impact of this well through a farmout agreement that funded the majority of our portion of costs with partner capital.
Conventional Oil and Gas Assets
The acquisition of Magnus Energy and the farm-in at Greater Sierra late 2007 were validated by our work in 2008.
We successfully drilled 15 wells and stage fractured 17 wells at Antler, Saskatchewan targeting light oil from the Bakken/Torquay formation. On average, the higher initial rates and production to date from these wells are positive signs for both acceleration of and increases in ultimate recovery. Notwithstanding the returns on capital invested in Antler at current oil prices continue to meet internal hurdle rates, we postponed our winter program because the time for the return of our capital was too long. In the interim, we continue to add to our inventory of drill-ready locations.
Two horizontal Jean Marie wells and a 46 square mile 3-D seismic survey earned us a 50% interest in a contiguous land block of over 50 sections at Greater Sierra in northeast BC. With multiple locations for the primary Jean Marie resource play, we see this acreage as a call on future natural gas prices. Further upside remains in the deeper horizons, where we have identified several leads on the 3-D survey.
Modifying drilling and completion techniques could have a material impact on recoveries and economics at both these projects. At Antler, we are looking into changing the perforation and cluster design along with the size of the fracs. We plan to gather pressure data from our wells at Greater Sierra to assess the benefits of newer completion methods, particularly gas-fracturing.
Corporate
The acquisition of our founding shareholder, Terrenex, was highly accretive. Terrenex and its predecessors have been involved in natural gas exploration in the Lowlands since the late 1980s and were among the first to identify the fractured Utica shale as a prospective play.
Through this acquisition we consolidated our interest in the Lowlands by adding a net 27,000 acres and ownership of an invaluable seismic database of over 5,000 kms. Total consideration was a net 8.2 million Questerre shares and $0.5 million in cash.
The addition of Pierre Boivin to the Board strengthened our presence in Quebec. With a strong entrepreneurial background in the province, Mr. Boivin currently serves as President of the Montreal Canadiens, the Gillette Entertainment Group and the Bell Centre. We are certain he will play a vital role in the development of our acreage as we establish its strategic value to the province.
Operational and Financial
The production and reserve improvements over the year reflect the successful development of our conventional oil and gas assets.
The drilling program in Antler largely contributed to the growth in our proved and probable reserves to 2.9 mmboe from 2.3 mmboe and a 44% increase in the reserve life index to just over six years. Light oil from Antler and higher oil production from Vulcan positively impacted our product mix with oil and natural gas liquids representing 33% of total volumes, up from 13% last year. We also disposed of non-core assets that included medium grade crude and short-life gas production in the Grand Forks and Westlock areas of Alberta.
Despite lower volumes compared to last year, the oil weighting and operating netbacks benefited from higher prices and materially improved our cash flow to $17.29 million. This cash flow and existing working capital funded gross capital expenditures of approximately $44 million.
Outlook
We have established the following objectives for 2009:
• Maintain financial flexibility
• Obtain additional results from Quebec and establish a statistically meaningful set of results
• Streamline operations and reduce operating costs
http://www.questerre.com/en/investorcenter/financial-reports/2008/
Her er "President's message"
PRESIDENT’S MESSAGE
2008 was a remarkable year for Questerre.
Our business plan to find a large gas field onshore Canada came to fruition with a giant shale gas discovery in Quebec. Currently in pre-pilot commercialization, we believe this discovery will ultimately become a major shale play in North America. Shale gas is creating historic changes in North American energy markets and, through our discovery in Quebec, Questerre is participating in these changes.
Although eclipsed by the success in Quebec, we had good results with our entire portfolio during the year. We generated cash flow of over $17 million on average daily production of 1,178 boe/d and exited the year with no debt, positive cash flow and working capital in excess of $54 million, consisting mainly of cash and equivalents. This financial strength will be invaluable in current markets, allowing us to fully evaluate our discovery in Quebec without any need for additional capital.
Highlights
• Major shale gas discovery in Quebec
• Early success with Liard shale gas play at Beaver River
• Continued growth in conventional assets - successful drilling programs conducted in Antler and Greater Sierra
• Cash flow of over $17 million reflecting improved light oil weighting and higher commodity prices
• Replaced over 150% of production and increased proved plus probable reserves by 24%
• Increased financial strength with net working capital of over $54 million at year end
St. Lawrence Lowlands, Quebec
The Yamaska test results released in early April provided the stimulus to accelerate appraisal of the shale gas potential of the Lowlands. These wells confirmed the key technical characteristics of the Utica shale as a viable resource play with multi-Tcf potential, in particular, the ability to be successfully hydraulically fractured.
Multi-well programs were subsequently announced by our partners, Forest and Talisman, to test the Utica, the shallower Lorraine shale and the deeper Trenton Black-River group. Fracability of the Utica shale was further substantiated by exceptional results from Gentilly #1. The stimulation of a single interval by Talisman in this vertical well yielded sustained rates of over 800 mcf/d on an 18-day test.
We believe the stabilized flow rates from Gentilly #1 and rates between 100-800 mcf/d from prototype horizontal wells by Forest are remarkable. When measured against more established shale plays, these results place us well up the first year learning curve for a new shale play. The next steps involve analyzing the technical data from these initial wells, adding further results and testing one variable at a time to establish a commercially successful completion design.
Forest and Questerre have completed an initial analysis of the extensive data gathered on the pre-pilot horizontal wells. We are currently planning to re-enter and stimulate one of these wells this summer. We have also been working with Talisman on a plan to drill pre-pilot test wells in advance of a multi-well commercial pilot pad. These wells will likely be multi-stage fractured horizontals situated near existing vertical wells. This would allow for microseismic monitoring of the fracs to verify the stimulated rock volume and indirectly, recoverable reserves.
Recent market conditions have caused a more cautious approach which is slowing the original timeline for commercial development. Our partners continue to proceed with further work in the Lowlands to develop optimal drilling and completion techniques. We are confident that with the scale of this project, the potential for stacked shale plays, and a competitive fiscal environment it remains a priority for all participants.
Beaver River Field
The shale expertise gleaned from Quebec gave us new ideas to test the Liard shales at Beaver River.
A focus on mechanical rock properties led us to re-enter the A-5 well and test a brittle interval at the top one of the three organic-rich shale sequences. Initial production rates of approximately 5 mmcf/d are encouraging; however, an extensive testing period is necessary to verify contribution from the shale interval along with further technical analysis.
We were disappointed with the results from the A-8 Nahanni well as it represented over six years’ technical work. We did, however, successfully mitigate the financial impact of this well through a farmout agreement that funded the majority of our portion of costs with partner capital.
Conventional Oil and Gas Assets
The acquisition of Magnus Energy and the farm-in at Greater Sierra late 2007 were validated by our work in 2008.
We successfully drilled 15 wells and stage fractured 17 wells at Antler, Saskatchewan targeting light oil from the Bakken/Torquay formation. On average, the higher initial rates and production to date from these wells are positive signs for both acceleration of and increases in ultimate recovery. Notwithstanding the returns on capital invested in Antler at current oil prices continue to meet internal hurdle rates, we postponed our winter program because the time for the return of our capital was too long. In the interim, we continue to add to our inventory of drill-ready locations.
Two horizontal Jean Marie wells and a 46 square mile 3-D seismic survey earned us a 50% interest in a contiguous land block of over 50 sections at Greater Sierra in northeast BC. With multiple locations for the primary Jean Marie resource play, we see this acreage as a call on future natural gas prices. Further upside remains in the deeper horizons, where we have identified several leads on the 3-D survey.
Modifying drilling and completion techniques could have a material impact on recoveries and economics at both these projects. At Antler, we are looking into changing the perforation and cluster design along with the size of the fracs. We plan to gather pressure data from our wells at Greater Sierra to assess the benefits of newer completion methods, particularly gas-fracturing.
Corporate
The acquisition of our founding shareholder, Terrenex, was highly accretive. Terrenex and its predecessors have been involved in natural gas exploration in the Lowlands since the late 1980s and were among the first to identify the fractured Utica shale as a prospective play.
Through this acquisition we consolidated our interest in the Lowlands by adding a net 27,000 acres and ownership of an invaluable seismic database of over 5,000 kms. Total consideration was a net 8.2 million Questerre shares and $0.5 million in cash.
The addition of Pierre Boivin to the Board strengthened our presence in Quebec. With a strong entrepreneurial background in the province, Mr. Boivin currently serves as President of the Montreal Canadiens, the Gillette Entertainment Group and the Bell Centre. We are certain he will play a vital role in the development of our acreage as we establish its strategic value to the province.
Operational and Financial
The production and reserve improvements over the year reflect the successful development of our conventional oil and gas assets.
The drilling program in Antler largely contributed to the growth in our proved and probable reserves to 2.9 mmboe from 2.3 mmboe and a 44% increase in the reserve life index to just over six years. Light oil from Antler and higher oil production from Vulcan positively impacted our product mix with oil and natural gas liquids representing 33% of total volumes, up from 13% last year. We also disposed of non-core assets that included medium grade crude and short-life gas production in the Grand Forks and Westlock areas of Alberta.
Despite lower volumes compared to last year, the oil weighting and operating netbacks benefited from higher prices and materially improved our cash flow to $17.29 million. This cash flow and existing working capital funded gross capital expenditures of approximately $44 million.
Outlook
We have established the following objectives for 2009:
• Maintain financial flexibility
• Obtain additional results from Quebec and establish a statistically meaningful set of results
• Streamline operations and reduce operating costs
31/3 2009 13:22 Hegu 0
6424 Ja....det er svært ikke at være en jubeloptimist med både QEC og NEC i porteføljerne. :)
Med venlig hilsen
:)Hegu
Med venlig hilsen
:)Hegu
