Corporate Presentation Pareto Securities E&P Independents Conference London January 22, 2013
Presentation outline Company Strategy & Overview Light Oil Bakken/Torquay, Antler, Saskatchewan Liquids-Rich Montney, Kakwa-Resthaven, Alberta Oil Shale St. Lawrence Lowlands, Quebec Outlook Investment Summary 2
Company strategy Leverage extensive tight rock/shale rock expertise to acquire tight resources early and develop reserves First mover in shale gas acquired acreage in Quebec almost 5 years ahead of industry Invited speakers at…
Company overview Near-term production enhancement Bakken/Torquay light oil pool in Saskatchewan with focus on secondary recovery potential to add 1.5-2.0 million barrels net to Questerre Medium term reserves and resource…
Asset overview Southeast Saskatchewan Proven Bakken/Torquay tight oil production with strong netbacks Western Alberta Liquids-rich Montney natural gas resource play with exceptional economics Utah & Wyoming Oil shale…
Financial overview Operating and Financial Results Nine months ended September 30, 2012 Working capital surplus() 40.6 million Debt Nil Cash Flow from operations () 7.35 million Production (boe/d) 648 Oil weighting 85% Revenue…
Bakken/Torquay Light Oil Antler, Saskatchewan 7
Antler Established tight oil asset Exploration Area targeting Bakken/Torquay resource play High value reserves NPV-10/bbl of 45.60/bbl based on 2P reserves of 2.1 million barrels and 96.3 million NPV-10 as at December 31, 2011…
Waterflood Secondary recovery scheme has been MAIN successfully applied in adjacent POOL Bakken/Torquay pool in Manitoba with a projected increase in recovery from 9% to between 16%-24% Low energy reservoir (no gas or water drive)…
Liquids-rich Montney, Alberta 10
Liquids-rich Montney 2,500 boe/d discovery well creates new core area for Questerre in west central Alberta Montney play is approximately 500 km long and 90 km wide One of the largest oil and gas fields in world Gas, oil and…
Liquids-rich Montney Questerre has built a significant land position in the sweet spot of the play fairway with high liquids rates Acquired 59 gross sections with 76% working interest (45 net sections) Good tenure - new licenses…
Proven Development Area High liquids rates from tested wells confirm acreage is in the sweet spot of the play First well on production at 1,260 boe/d (158 Bbls/MMcf of condensate) QEC 37.5% interest BPO, 25% APO Second well tested…
Area Activity Test results based on published company data 14
Industry Activity 15
Industry Activity 16
Industry Activity 17
Well results First two wells tested same interval in the upper Montney and are above average for area 40%+ condensate and NGL - rates better than expected Production tests support robust economics for play Type well of 3.5 Bcf…
Growth potential Questerre is currently targeting one of three prospective intervals in the Upper Montney For each section, each interval estimated at 14-20 Bcf and 1.2-2 million barrels recoverable resource based on development of…
Oil Shale 20
Oil shale Major resource on cusp of commercial development Estimated 2.8-3.1 trillion barrels in place worldwide with 2.1 trillion located in the United States Questerre has an indirect interest in a US400 million joint venture…
EcoShale - In-situ capsule process Innovative approach that moves the process to the rocks instead of moving the rocks to the process Incorporates benefits and avoids challenges of both surface and subsurface processes…
Scaling from pilot to commercial by 2014 Questerre prefunded its share of capital program through equity investment in Red Leaf Red Leaf and Total to invest US400 million to commercialize EcoShale Process in two phases Total to…
Questerre projects Pasquia Hills, Saskatchewan 100% interest in 39,000 high-graded acres at Pasquia Hills with potential for oil shale resource of over several hundred million barrels Drilled 16 wells in 2012 Approximately 30-45 m…
St. Lawrence Lowlands, Quebec 25
Where Questerre is currently High rate, high pressure gas wells 18 Tcf prospective recoverable resource on acreage 4.4 Tcf net to Questerre Premium gas market Tenure recently extended to 2021 Environmental assessment underway…
Whats changed in Quebec since BAPE Public relations work by Questerre and others has resulted in a supportive vocal constituency Announcement of a moratorium by Minister of Natural Resources was publicly criticized, then withdrawn…
Outlook 28
Outlook Implement waterflood in Antler, Saskatchewan to maximize recovery of oil in place Drill three more (1.30 net) wells in Kakwa-Resthaven for liquids-rich Montney shale - Four (1.55 net) wells in total for first half of 2013…
Investment summary Major new liquids-rich resource in Montney shale, Alberta Light oil resource play in Antler, Saskatchewan with incremental high value Strong reserves portfolio Oil shale projects offer opportunity to capture…
Management and Board Management Board Michael Binnion, President & Chief Executive Les Beddoes, Jr. Officer International explorationist John Brodylo, VP Exploration (Nexen) Former VP Exploration, Bow Valley Energy Inc.; Victoria, BC…
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