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CALGARY, Alberta, Aug. 08, 2025 (GLOBE NEWSWIRE) — Questerre Energy Corporation (“Questerre” or the “Company”) (TSX,OSE:QEC) reported today on its financial and operating results for the second quarter ended June 30, 2025.
Michael Binnion, President, and Chief Executive Officer of Questerre, commented, “Our production averaged over 3,000 boe per day in the quarter after the tie-in of the three (1.5 net) Kakwa North wells. We are assessing both owned and third-party processing capacity for these existing volumes and future growth. A follow-up drilling program is now scheduled for the second half of next year.”
Commenting on developments in Quebec, he added, “Interest is growing in our natural gas discovery as a secure and reliable supply in Quebec, particularly among industrial gas users. It is also being considered as the supply for the 550 MW Becancour thermal power plant as it may be converted to produce power for peak demand periods. As we work towards a business solution, we are also following the legal process to protect our shareholders’ rights. We recently filed an application for leave to appeal a decision by the Quebec Court of Appeal to reinstate certain provisions of Bill 21 prior to our hearing on the merits of the case.”
Highlights
- Kakwa North wells tied-in and on production
- Questerre filed leave to appeal to Supreme Court of Canada following Quebec Court of Appeal ruling on Bill 21
- Average daily production of 3,091 boe per day for the quarter, almost doubling production from the same period last year
- Net cash from operating activities of $6.3 million and adjusted funds flow from operations of $5 million despite significantly lower realized prices
Following the tie-in of the Kakwa North wells, production volumes this year increased materially compared to last year. Production averaged 3,091 boe/d for the quarter (2024: 1,559 boe/d) and 2,414 boe/d for the first half of the year (2024: 1,612 boe/d).
Higher production volumes were partly offset by the lower realized liquids prices resulting in higher revenue for the quarter and six months ended June 30 compared to last year. For the quarter, petroleum and natural gas sales totaled $13.7 million (2024: $8.8 million) and $22.8 million year to date (2024: $17.8 million). The higher revenue contributed to adjusted funds flow from operations of $5 million (2024: $4.5 million) in the quarter and $8.5 million for the first six months of the year (2024: $7.4 million) and cash flow from operations of $6.3 million for the quarter (2024: $3.1 million).
The revenue was offset by higher expenses and contributed to a net loss of $0.7 million for the quarter and year to date (2024: $1.3 million income for the quarter and $1.1 million year to date). Capital expenditures in the quarter were $1 million (2024: $7 million) and $18.9 million year to date (2024: $9.7 million).
As at June 30, 2025, effectively no amounts were drawn on the facility and the Company held unrestricted cash and term deposits of $18.3 million. As of June 30, 2025, the Company had a net working capital surplus of $13.2 million (2024: $27.6 million surplus).
The term “adjusted funds flow from operations” and “working capital surplus” are non-IFRS measures. Please see the reconciliation elsewhere in this press release.
Questerre is an energy technology and innovation company. It is leveraging its expertise gained through early exposure to low permeability reservoirs to acquire significant high-quality resources. We believe we can successfully transition our energy portfolio. With new clean technologies and innovation to responsibly produce and use energy, we can sustain both …