Q2 report


QEC: Questerre releases 2Q 2019 Report

Questerre Energy Corporation

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10.8.2019, 00:20·
Oslo Børs
President's Message

We are convinced that our idea to use different approaches and new clean technologies to create zero emissions gas production in Quebec is the right one.
An aspirational goal of near zero environmental impact has transformed how we look at development of our resources and our approach to social acceptability.
The conventional incremental approach focused only on economic solutions is no longer good enough. People understand we need to balance the environment and the economy but they are looking for a leap forward.
Our goal is to achieve true sustainability with projects aimed at near zero environmental impacts. We are revisiting our business plan with the idea of taking this approach throughout our business.
Highlights Farm-in partner exercises option to drill fourth well at Kakwa North Agreements reached with Schlumberger and SNC-Lavalin to advance the Clean Tech Energy project in Quebec Invited by Government of Jordan to apply for concession agreement for oil shale project Average daily production of 2,035 boe/d for the quarter with adjusted funds flow from operations of $2.66 million
During the quarter, we continued to build support for our Clean Tech Energy project. Teamsters Canada, one of the largest trade unions in Canada, publicly declared their support for natural gas development proceeding in Quebec.
SNC-Lavalin, a Quebec-based engineering firm, was engaged to develop the engineering for our project and validate its feasibility and environmental benefits. We also formed a relationship with Schlumberger to apply their stewardship tool to model and measure environmental impacts.
While the vision for this project is ambitious - producing zero emissions natural gas with zero fresh water usage and zero toxic chemicals below ground
we are confident it can be done. By integrating new and existing technologies, Quebec could become a leader in clean natural gas production. In addition to replacing imports, the natural gas could provide the feedstock for cleaner high value products such as fertilizer and methanol.
Communicating these economic and environmental benefits to the government and other stakeholders is taking longer than we originally hoped. It is, however, a prerequisite to any approvals. On the basis that our discussions for the Clean Tech Energy project continue and to allow SNC-Lavalin time to complete the engineering, we are applying to extend the deferral of our judicial review until early next year.
At Kakwa North, our partner continues to delineate producing intervals in the Montney. A third earning well was completed in the quarter with initial results in line with the previous wells. Based on these results, they elected to drill the next well and it should spud shortly.
Next year we could see our first joint well at Kakwa North. It will benefit from the ongoing work to optimize completions. The goal is to balance the sand tonnage, water volumes and fracture treatment spacing to increase both initial production and ultimate recoverable reserves.
We are growing more optimistic about a third interval lower in the Montney formation at both Kakwa North and Kakwa Central. If proved up, it could increase the number of undrilled locations. The largest operator in the Kakwa area reported positive results from a triple stack, or three stacked wells with each of them targeting one specific interval into the Upper, Middle and Lower Montney. We are discussing with both operators a test of this interval next year subject to commodity prices.
Our oil shale project in Jordan is moving to the next stage. The Government recently invited us to apply for a concession agreement to include work program commitments and other fiscal terms. These negotiations will start soon and will leverage the engineering by Red Leaf to prove the commerciality of their EcoShale process.
Operating & Financial
Relatively unchanged from last year, production of 2,035 boe/d in the quarter reflects the investment in Kakwa Central last year as well as incremental royalty volumes from Kakwa North. With materially lower oil prices in 2019, adjusted funds flow from operations for the quarter of $2.66 million remained consistent with the first quarter but declined over the second quarter of last year. Capital expenditures for the six months ended June 30, 2019 were $10.44 million with 90% invested at Kakwa Central.
Outlook
In Quebec, our plans are to align the schedule for the technical work with the timeline for social acceptability and regulatory approvals. Given the considerable work needed to build this support by stakeholders, our step by step approach is very important. We are targeting to complete the preliminary engineering work by this year end and the local acceptability needed for the Clean Tech Energy project next year.
Source Url: https://newsweb.oslobors.no/message/482546
Lukk
KMGN
11.08.2019 kl 14:07 1937

En kløpper i matte du hango :-)
Redigert 11.08.2019 kl 14:07 Du må logge inn for å svare
hango
11.08.2019 kl 21:27 1724

Skrivefeil ble det vist..
Mulig vi ser 90øre til neste uke?
mini3
11.08.2019 kl 21:30 1724

Siden du har solgt må vi jo håpe på 0,5 så du får en billig inngang;)
Asroma87
11.08.2019 kl 21:33 1707

Jordan nyt på vej, kurs 2 iløbet af næste uge, bunden er nået.
LATO
11.08.2019 kl 21:39 1682

2-3 gode meldinger fra Québec, Jordan og ressurs oppdatering og vips passerer vi 5 kr:)
hango
11.08.2019 kl 21:44 1665

Det er lenge mellom de gode meldingene her. Foreløpig er det bare skuffelser..
Mulig vi ser 50øre før den første gode meldingen kommer?
Redigert 11.08.2019 kl 21:44 Du må logge inn for å svare
KMGN
11.08.2019 kl 21:56 1625

Spar oss for det amøbe-vrøvlet ditt nå hango
LATO
11.08.2019 kl 22:21 1533

Kan vel komme info rundt Montney?
Nedre sone??
Sector
11.08.2019 kl 22:26 1515

Domus 22.16 - hva med dette som du postet 8. august? Kiza konfronterte BInnion om dette, og han svarte da at Qec tolket sine resultater nå, og da kan vi vel håpe på en melding rundt dette / reserveoppdatering?
......
02.08.2019 kl 08:45
5534
Børshaien..., kan ikke se at jeg har nevnt at det skal komme en melding fra selskapet!

Men ettersom andre ikke popper Montney news, får jeg stå for poppingen.
Som kjent for mange, har Qec arealer rett ved siden av 7G og de melder :

Positive Lower Montney Results Point To Third Layer Of Development In Nest, Says 7G
Seven Generations Energy Ltd. brought its first full triple-stack pad on production at Nest 3 during the middle of the second quarter of 2019 and company officials say they are encouraged by the results.
hango
11.08.2019 kl 22:46 1453

Bra du ikke blir skuffet..
Jeg er meget skuffet!
Tipper denne åpner på rundt kronen i morgen, før den fortsetter ned til 50øre fremover..
hango
11.08.2019 kl 22:57 1416

Tror nok det ikke er meg som trenger hjelpen, dersom dere mener at kvartalet var bra..
Men for all del, kjøp mer og snitt ned..
Vikingen
11.08.2019 kl 22:57 1412

Kan du så ikke berige os med hvad du så ser fremover - eller vil du ikke dele det med menigheden?
sheepman
11.08.2019 kl 23:01 1395

Skikkelig bombe! Underskudd igjen.... - Guider samme produksjon nå som de gjorde for 10 år siden. Tragisk!
Domus
11.08.2019 kl 23:13 1359

Qec kommer normalt med ressursoppdatering en gang pr år.
Neste er planlagt på nyåret.
Pr i dag tror jeg ikke Qec har data nok til å estimere nøyaktig nok til en ressursoppdatering.
Noe mer synsing får du ikke fra meg.
XL2016
11.08.2019 kl 23:18 1335

CPDQ ( Casse de depot et placering du Québec ) har investeringer på omtrent 17 milliarder dollar i hydrokarboner.

Huff&huff - tenk på alle milliardene som nå skal investeres i LNG og gassdrevet industri i provinsen Quebec.
sheepman
12.08.2019 kl 00:49 1201

yepp. og flere av disse selskapene tjener gode penger på dette. men det gjør ikke qec dessverre
Stranger
12.08.2019 kl 07:24 1002

De fleste af de små selskaber taber penge nu og kursmæssigt er på nær "year low". Det samme er QEC.
https://www.hegnar.no/Nyheter/Boers-finans/2019/08/Roed-bunnlinje-for-Questerre

Det er måske rigtigt - men når andre selskaber begynder at opdatere deres ressurser og hæver deres forventninger, så vil markedet reagere negativt hvis der slet ikke kommer noget fra QEC.
Vi må håbe de ændre lidt i deres procedure og kommer med en opdatering.
LATO
12.08.2019 kl 08:23 795

Spennende tider. Qec jobber nå med 3 spennende områder!
Det jobbes bra!
Domus
12.08.2019 kl 08:54 662

Kurspleiende meldinger uten grunnleggende info blir spekulativt. Qec kan ikke oppgi ressursestimat uten nok data!
Q2 rapporten nevner lower Montney i positive ordlag med signaler på at de ønsker å teste dette intervallet framover.

Vi er helt enige om at man ikke kan komme med meldinger - uden at have den rigtige viden/data.
Uanset hvad, så ser Montney spændende ud for QEC - vi må nok bare våbne os med tålmodighed endnu en gang.

QEC har et kæmpe potentiale - men på et tidspunkt skal Binnion også forløse det og produktionsmæssigt er der ikke sket meget de sidste mange år.
Jeg håber på at Montney kan begynde at ændre det og deres nye 50/50 brønde vil hjælpe bundlinjen og derved kunne undgå endnu en emission og endnu mere udvanding af kursen.
Jensi
12.08.2019 kl 09:25 474

Hmm jeg synes at en kurs på 1.4xx vist allerede har indregnet ALT negativt !
nej , vi skal op !
princes
12.08.2019 kl 09:37 419

Dette er en fin uke for langsiktige store investorer å vekte seg opp.
Samt innsidehandel.
Jakal
12.08.2019 kl 09:50 369

Emisjoner i Qec har hovedsakelig vært et virkemiddel for å opprettholde driften med ny arbeidskapital, og har uten unntak vært tapsprosjekter for langsiktige aksjonærer som har deltatt i emisjonen(e). Binnion vet selvsagt at terskelen for nye emisjoner nå ligger veldig høyt, det holder ikke med visjoner og potensielle resultater. Qec har et skadeskutt rykte for å overleve på naive aksjonærer, kanskje litt ufortjent etter den overraskende politiske omdreining i Quebec for et år siden. Jeg tror Binnion nå må velge nye virkemidler for kapitalinnsprøytning;, partnerskap, salg etc. Kommer det imidlertid en ny emisjon i 2019 / 2020 er det et bullsignal, da har Qec fått konkrete signaler som fjerner risikoen for nye aksjonærer. Jeg tror derfor det er en avsporing å diskutere nye emisjoner nå, Binna vet at tålmodigheten til aksjonærene ikke er ubegrenset.
Jakal
12.08.2019 kl 09:54 342

Forøvrig, for det det er verdt: Pareto er i hovedsak positiv til Q2-rapporten, og opprettholder kjøpsanbefaling med kursmål på 5,-.
LATO
12.08.2019 kl 09:56 333

Har du analysen? Kan den legges her?
Jakal
12.08.2019 kl 09:59 311

Tillater meg å sakse fra et annet nettsted:
Continued good drilling results in Montney
Questerre reports Q2’19 EBITDA of CAD 2.4m, which is up from CAD 2.1m in Q1 but below our estimate of CAD 4.3m. The deviation is driven by weaker realized prices and somewhat higher costs in the quarter while production of 2,035 boe/day (up 5% from Q1) is spot on our estimate. The cash balance of CAD 28m (CAD 14m net cash) is above our expectations due to WC changes. In Montney, the incoming partner at Kakwa North Kicking Horse will spud its forth farm-in well shortly on the back of continued solid initial production from the third well. With this, the operator has invested ~CAD 60m to earn its 50% stake in the blocks with results this far indicating upside to our current valuation of the acreage. In Quebec, Questerre continues to focus on its Clean Tech Energy project and social acceptability to secure government approval for its pilot development. Overall, we view this as a positive report and expect a positive share price reaction today. BUY/TP NOK 5.0