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CALGARY, May 1, 2017 /CNW/ - Questerre Energy Corporation
("Questerre" or the "Company") (TSX,OSE:QEC) reported today on an
essential test of mechanical rock properties for its oil shale in
Jordan.
Michael Binnion, President and
Chief Executive Officer of Questerre, commented, "Finding a way to
commercialize this significant oil shale project in a US$50 to US$70 per barrel environment is our main
focus here. These tests establish that the mechanical rock
properties of our shale are conducive to meeting this goal."
The Company's significant discovery on its oil shale acreage in
Jordan was recently assessed 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 12.24 billion
barrels. Using a 2:1 volumetric ratio of overburden to ore, the
best estimate of DPIIP for the lower rich horizon with an average
grade of 22.66 gallons per ton is 7.78 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. For more information,
please see the Company's press release dated October 27, 2016 and its Annual Information Form
for the year ended December 31, 2016
dated March 24, 2017, available on
the Company's website at www.questerre.com and SEDAR at
www.sedar.com.
He added, "Minability and crushability, while maintaining
compressive strength, are critical factors in the processing of oil
shale. The mechanical rock properties testing has shown that our
oil shale meets these criteria for all the technologies we are
evaluating, including Red Leaf's EcoShale process."
The testing was conducted in conjunction with Red Leaf Resources
Inc. ("Red Leaf"). Questerre continues to work collaboratively with
Red Leaf. In a recent update to its shareholders, Red Leaf noted
that it has reached an agreement with a subsidiary of the French
supermajor, Total S.A., to exit their joint venture agreement. Red
Leaf currently has over US$100
million in available cash and no debt. It intends to
continue to pursue its business plan of commercializing the
EcoShale process. Questerre currently holds approximately 6% of the
equity capital of Red Leaf and has certain rights to use the
EcoShale process to recover oil from shale.
The main objectives of the retort compression testing ("RCT")
were to identify whether the shale could be directly heated without
any deterioration in the quality and the specific mechanical
properties of the spent shale under stress. The testing was
successful on both counts.
Based on the results of the RCT, the next round of testing will
identify the oil yield, including products and quality, from the
Jordan oil shale using direct
heating under various heating cycles. Testing is underway with
results expected early this summer.
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.
Advisory Regarding Forward-Looking Statements
This news release contains certain statements which constitute
forward-looking statements or information ("forward-looking
statements") including the Company's belief that the testing
conducted validates the mechanical rock properties of its Jordanian
oil shale for prospective development, the Resource Assessment, the
Company's view of the critical factors for processing oil shale,
Red Leaf's intention to continue to pursue its business plan of
commercializing the EcoShale process and the timing of subsequent
testing and results. Although Questerre believes that the
expectations reflected in our forward-looking statements are
reasonable, our forward-looking statements have been based on
factors and assumptions concerning future events which may prove to
be inaccurate. Those factors and assumptions are based upon
currently available information available to Questerre. Such
statements are subject to known and unknown risks, uncertainties
and other factors that could influence actual results or events and
cause actual results or events to differ materially from those
stated, anticipated or implied in the forward-looking
statements. As such, readers are cautioned not to place undue
reliance on the forward looking information, as no assurance can be
provided as to future results, levels of activity or
achievements. The risks, uncertainties, material assumptions
and other factors that could affect actual results are discussed in
our Annual Information Form and other documents available at
www.sedar.com. Furthermore, the forward-looking statements
contained in this document are made as of the date of this document
and, except as required by applicable law, Questerre does not
undertake any obligation to publicly update or to revise any of the
included forward-looking statements, whether as a result of new
information, future events or otherwise. The forward-looking
statements contained in this document are expressly qualified by
this cautionary statement.
Resource Disclosure
DPIIP is the most specific assignable category of resources at
this time given the preliminary nature of the Resource Assessment,
the nature of recovery of the hydrocarbons by meaning of mining and
that a program of work to determine commercial viability using
established technology has not yet been completed.
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 herein are considered reasonable. However, they should be
accepted with the understanding that additional data and analysis
available subsequent to the date of the estimates may necessitate a
revision. These revisions may be material. There is no certainty
that it will be commercially viable to produce any portion of the
DPIIP.
SOURCE Questerre Energy Corporation
