QEC - Q3 publisert

Earth
QEC 10.11.2018 kl 00:45 12041

Highlights
Government of Quebec enacts Petroleum Resources Act and regulations
Kakwa joint venture facilities expansion completed with gross capacity almost
doubling to 43 MMcf/d
Kakwa North well tests at 2,900 boe/d and operator plans tie-in
Average daily production of 1,414 boe/d for the quarter, impacted by the plant
expansion, with adjusted funds flow from operations of $2.62 million

We still plan to move forward in Quebec despite the previous Governments
decision to include the ban on hydraulic fracturing in the final regulations.
Our optimism is based on the strength of our legal position and, more
importantly, growing social acceptability.

At a court hearing early in the fourth quarter, the Superior Court Justice
responsible for the case agreed that Questerres motion for judicial review
raises serious questions of public interest. Given the high importance of
the issues, we were allowed a fast-tracked judicial review that will decide on
permanently setting the fracking ban regulations aside. The hearing is scheduled
for next February and we expect a decision early in the spring. We are open to
settling this legal proceeding with the new Government on a pragmatic basis that
balances the legal issues and environmental protection.

Aside from the unexpected and purported last-minute changes to the regulations,
we were pleased with the subsequent enactment of the Petroleum Resources Act
that will oversee oil and gas development in Quebec. This legislation was
approved by the National Assembly in December 2016 and permits hydraulic
fracturing. While the other regulations could be more streamlined, they allow us
to resume development once we have secured social acceptability.

We continue to work on social acceptability, step by step. These included over
six years of public consultations and environmental assessments on developing
oil and gas, as well as the safety of modern completion techniques. This was
successful, and we believe it informed the 2030 Quebec Energy Policy that
supports the development of local natural gas to reduce emissions and energy
imports. Our next steps are to secure local acceptability with our clean gas
pilot and revenue sharing proposals for municipalities. The initial feedback has
been positive.

On the basis that we have growing local acceptability and a hearing on the
regulations, we plan to close our previously announced acquisition in Quebec
early next year. This will give us the operatorship we need to advance our
proposed pilot program and revenue sharing. With a three fold increase in our
acreage, we will be engaging our reserve engineers to update the Quebec resource
assessment post-closing.

In Jordan, we have started the next phase of engineering for our oil shale
project.

In addition to the long-life reserves with no real decline rate relative to
shale oil and conventional production in North America, this project also
benefits from upgrading and premium pricing to Brent. Following the results from
the feasibility study by Hatch, that estimated combined capital and operating
costs of between US$38-40/bbl, we are looking at optimizing capital costs to
improve returns for this multibillion-barrel deposit. We hope to begin
negotiations with the Kingdom of Jordan for a concession agreement by year-end.

By this time, we should see the results from the second farm-in well on our
Kakwa North acreage. We were very pleased with the results from the first well
that tested at 2,900 boe/d including almost 1,000 bbl/d of condensate. Another
well could spud early next winter. We have a royalty interest in these initial
wells and a 50% working interest in all future wells. Based on the operator's
plans to tie-in these wells, by this time next year, we may see a similar ramp
up in drilling to our adjacent Kakwa acreage.

At Kakwa, up to seven (1.5 net) wells are planned over the next year. On this
basis, we anticipate production growth of 500 boe/d largely funded by cashflow.

Production averaged 1,414 boe/d for the third quarter and 1,812 boe/d year to
date compared to 1,643 boe/d and 1,270 boe/d for the same periods last year.
With production shut-in longer than expected for this infrastructure and other
field work, our volumes declined over the prior quarter. Current corporate
production is estimated at 1,800 boe/d.

Improved oil prices and higher volumes year to date contributed to adjusted
funds flow from operations of $13.28 million for the nine months ended September
30, up from $4.23 million last year. Light oil and liquids represent almost 70%
of our production and we realized an average price of $74/bbl year to date. As a
result of the growing discounts for Canadian oil due to a lack of market access,
this pricing could decrease materially over 2019.

We were encouraged by the election of a right-of-centre majority government in
Quebec. Our natural gas discovery could contribute strongly to their goal of
reducing energy imports and improving the provinces economic independence. We
look forward to working with this new government.


Michael Binnion
President and Chief Execu
Ekstern link: https://newsweb.oslobors.no/message/463302
Redigert 10.11.2018 kl 00:51 Du må logge inn for å svare
tuja
14.11.2018 kl 16:18 2165

På seg selv kjenner man andre, sies det.
Glemte du å kjøpe på 2,75 siden du er i ett dårlig humør?
piff
14.11.2018 kl 16:20 2157

Undres hvorfor ikke qec øker takten for flere brønner på kakwa, Helst som du referer til Domus 50/50 brønner.
Kan jo selvsagt ha sammen heng med infrastrukturen som ikke er den beste pr i dag ?
Hadde gjerne sett Qec med 4-5000 boe innen årslutt 2019.
Må ærlig innrømme at jeg synes det går vell tregt med å få, opp produksjons volumet .
Bonzo
14.11.2018 kl 16:21 2154

Hvorfor tror du jeg er i dårlig humør?

Bare litt skuffet over deg, trodde du hadde litt mere innsikt i aksjen.
tuja
14.11.2018 kl 16:31 2144

He he. Ja, du har da den fulle rett til å tro hva du vil.
Om jeg bryr meg? Selvfølgelig. Kanskje jeg burde starte på skolebenken igjen.
Mange år siden jeg ble uteksaminert, men men, mulig jeg må vurdere det.
Takk for påminnelsen om hvor lite innsikt jeg har.

Ha en god dag videre. :)
Domus
14.11.2018 kl 17:07 2077

Jepp, alt fra etan til nærmest asfalt 😊
Flipper
14.11.2018 kl 18:40 1940

Picked up @ US diskusjonforum, og enig
Helima Croft

Croft argues that Trump waivers and tweets neutralized Saudi statements about rebalancing. She also says that Russia, at least publicly, does not see its output as a problem. Ostensible Saudi-Russia disunity combined with uncertain 2019 demand oulook provided the space for algo-trading to take down the price of oil out of proportion to actual supply-demand.

I suspect a sharp reversal of sentiment in the paper markets (if not some sort of blow-up) also helped propel oil prices downward. We can await the upcoming COT report to get a better picture.

I also suspect that the KSA “funded” most of its additional oil (pre-election) exports to the US from inventory as there was no other way to respond so quickly to Tump’s mid-year tweet demand/request to bring down oil prices. Transferring Saudi inventory to the US, where it really counts, certainly accomplished the Trump-Saudi goal of bringing down prices.

Today’s oil prices certainly suggest a global oversupply, which reflects increased US inventories, but it is not at all clear that there is a major supply overhang, as Iranian exports decline (if less than previously anticipated), as the Saudis reduce exports to refill inventories, and as China continues to goose its economy with additional lines of credit. Together these factors could easily cause a so-called million barrel per-day surplus to dissipate very quickly.
Yzf R1
14.11.2018 kl 18:45 1921

Please take a moment to read the following article by Michael Binnion, CEO of Questerre Energy Corporation, on why it is time to get serious on energy in Quebec.  Mr. Binnion proposes that the time is very propitious. The previous government’s failure to move on the Energy East pipeline has still left Quebec dependent on foreign oil. Canada spends $39 million a day — a day — on foreign oil purchases and Quebec makes up a great deal of that. Indeed, Quebecers not only pay higher gas prices because of this, but they are also purchasing from some less than stellar governments like Venezuela. 
 
Mr. Binnion charges Premier François Legault to commence his mandate on energy, taking initiative on pipelines and natural gas.  Deregulation and increased investment in energy would help to build a home-grown industry led by exactly the type of independent entrepreneurs M. Legault and business leaders want.  It is time for Quebec to get serious on its energy potential.
 
Får ikke åpne linken noen som kan prøve

 http://www.thesuburban.com/opinion/editorials/time-to-get-serious-on-energy-in-quebec/article_5e0ab452-297a-5077-9906-3d597ba27052.html

tuja
14.11.2018 kl 18:51 1908

Prøvde, men fikk feilmelding.
tuja
14.11.2018 kl 19:02 1876

Fy f... sjå på nat-gas:


Natural Gas Futures - Dec 18 (NGZ8)

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Flipper
14.11.2018 kl 19:32 1801

Interessant innlegg i Uniten

Re: Dec 2018 CL Futures contract-Market is catching up to the early winter.

A talking head on CNBC said the other day, the russians were making up for the supposed falloff in iranian oil shipments, but then maybe they didn't lose any and the excess has just driven down prices, in general. And, SA and maybe some of the other GCC guys may have dumped more oil at the request of Trump to keep gasoline prices lower through the election.

What's interesting is that despite the oil collapse, NG has soared. There seems to be a disconnect between what should have been a fall off in drilling to be expected due to lower oil prices. But, the amount of time needed to adjust things was too short to compensate for the markets finally realizing that not only is the storage lower by around 500 BCF+, but this winter has come on more quickly and with lower temps. than was expected. The lack of sunspots has finally produced the cooling that was predicted in several quarters such as with Bastardi and the russians.
Yzf R1
14.11.2018 kl 21:14 1669

😂 takker, fikk selv en feilmelding men funket med din link 👍🏻