Calgary, Alberta -- Questerre Energy Corporation
("Questerre" or the "Company") (TSX,OSE:QEC) is
pleased to announce that is has concluded the final
agreements for market access for its natural gas and
liquids production in the Kakwa-Resthaven area of west
central Alberta.
Michael Binnion, President and Chief Executive
Officer, commented, "These contracts are the
cornerstone of our wellhead to burner tip strategy.
They include firm transportation for our natural gas
and liquids, including condensate. We also have
secured fractionating capacity and long-term marketing
contracts for the liquids. These match our commitment
to firm processing capacity for 20 MMcf/d of natural
gas and liquids that is expected to commence in early
to mid-2015."
He added, "These take or pay contracts leverage third
party capital, reducing the capital we would otherwise
require to finance the necessary investment in
infrastructure. With these agreements, we now have the
infrastructure in place to ramp up our natural gas
production to a minimum of 20 MMcf/d in the latter
part of 2015. Coupled with the liquids rates from our
existing wells, we expect this production could be
over 5,000 boe/d net to Questerre."
Through its participation in a third party pipeline
expansion, the Company has entered into an agreement
for firm transportation of natural gas liquids
including condensate from the Kakwa-Resthaven area to
Edmonton. The committed volumes under this contract
are approximately 3,000 barrels of liquids per day.
Questerre also concluded an agreement with a third
party for fractionating and marketing for the natural
gas liquids associated with its production in the
Kakwa-Resthaven area. Lastly, the Company also
concluded an agreement with a major pipeline company
for firm transportation capacity for 19 MMcf/d of
sales gas. These contracts are subject to receipt of
all requisite regulatory and environmental approvals.
