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CORPORATE PRESENTATION – Questerre Energy Corp.

Questerre Energy Corp. · Sep 1, 2011 · 32 slides

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Slides

  1. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 1
    Corporate Presentation Pareto Oil & Offshore Conference August 31 September 1, 2011
  2. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 2
    Presentation outline Company Overview Unconventional Oil Antler, Saskatchewan St. Lawrence Lowlands, Quebec Investment Summary 2
  3. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 3
    Company overview Near term focus on creating value through unconventional oil opportunities Established new ventures team with core competency in shale Focus on scalable, high-impact resource projects 45,000 net acres for light oil…
  4. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 4
    Asset overview St. Lawrence Lowlands, Quebec Giant Utica shale gas discovery being commercialized with partners Lorraine shale upside Southeast Saskatchewan/Manitoba Proven Bakken/Torquay light oil resource style play with cash…
  5. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 5
    Financial overview Operating and Financial Results Quarter ended June 30 2011 2010 Working capital () 131 million 160 million Debt Nil Nil Cash Flow from operations () 2.2 million 0.2 million Production (boe/d) 586 620 Oil weighting…
  6. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 6
    Unconventional Oil 6
  7. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 7
    Unconventional oil Oil resource plays with low permeability, low porosity and running room Tight oil, shale oil, oil shale Superior economics to unconventional gas with less geological risk than conventional oil exploration New…
  8. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 8
    Unconventional oil strategy Target resources with over 100 million barrels of oil in place Early stage domestic and international opportunities Evaluate new processes and technology to profitably extract oil while minimizing…
  9. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 9
    Executing the strategy Questerre is an early leader in shale Internal expertise and core competencies beyond typical juniors Hired pioneer in shale gas development in North America, Dr. Basim Faraj for new ventures team Have…
  10. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 10
    Antler, Saskatchewan 10
  11. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 11
    Antler Overview A core area for Questerre High margin, light oil asset targeting Torquay/Bakken resource play Average royalties of 6% and operating costs of approximately 10/bbl Developing and expanding existing oil pool with…
  12. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 12
    Antler Key statistics Infill and step out locations 42 Exploration acreage (sections) 60 2P Reserves (million bbls) 1.4 2010 Recycle ratio 2.5 (2P Reserves including future capital) 2010 Netbacks per barrel 63.12 (2010…
  13. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 13
    Production results to date 100.00 90.00 80.00 A verage P ro d u c tio n Rate (b b l/d ) 70.00 60.00 50.00 40.00 30.00 Template Well Short Horizontal 20.00 Poor Completion 10.00 Well not fracd 0.00 0 2 4 6 8 10 12…
  14. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 14
    2011 summer operating conditions 14
  15. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 15
    Accretive acquisitions Completed acquisition of producing assets and exploration acreage for 13.25 million in July 2011 Approximately 100 bbl/d of production from four vertical wells and two horizontal wells 2P Reserves 419 Mboe…
  16. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 16
    Antler Developing a core area Goal is to increase production to 2,000 bbl/d during SEA in Quebec Move from 1 rig to 2 rigs + contract frac crew for 2012 Plan for 10-15 wells per rig per year depending on weather, equipment and…
  17. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 17
    St. Lawrence Lowlands, Quebec 17
  18. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 18
    St. Lawrence Lowlands Where Quebec is currently BAPE Royalty regime Legislation Social acceptability Where Questerre is currently Path to commercialization Whats next for Quebec Prerequisites for development Aerial view…
  19. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 19
    Where Quebec is currently 19
  20. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 20
    BAPE BAPE mandates multi-stakeholder committee to oversee strategic environmental assessment (SEA) European approach as opposed to North American approach BAPE says no fracture stimulation during environmental assessment…
  21. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 21
    Interim regulations Interim regulations require operators to inform and consult with public prior to commencing operations Questerre does this already MDDEP may have representatives participate as observers in process New, but…
  22. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 22
    Legislation Clear from BAPE study and royalty report that Quebec is working to create an oil and gas regime Qubec is not relying on industry experience so it will take time to independently develop their own expertise 6 million…
  23. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 23
    Social acceptability Industry is disconnected from the public Financial intermediation separates producers from consumers Risk management industry accustomed to moving capital from one jurisdiction to another Not a consumer-focused…
  24. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 24
    Where Questerre is currently 24
  25. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 25
    Where Questerre is currently 4.4 TCF (726 million boe) prospective recoverable resource, evaluated by NSAI Land position is the heart of the fairway Premium gas market Currently in advanced piloting phase 25 Land held until…
  26. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 26
    Path to commercialization 600 500 Com m itte d Capital ( m illions) 400 400+ 300 Quebec Currently 200 100 to 300 100 0 to 75 50 to 150 0 IDENTIFY INVESTIGATE ADVANCED TRIAL COMMENCE Resource Rock Properties Pilots…
  27. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 27
    Whats next for Quebec 27
  28. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 28
    Prerequisites for development Strategic Environmental Assessment Complete advanced piloting phase and sweet spot identification Establish hydrocarbon legislation Achieve social acceptability Develop local service sector 28
  29. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 29
    Outlook Acquire early-stage, high-impact opportunities to complement Utica shale discovery Focus on unconventional oil Develop Antler into core area with production goal of 2,000 bbl/d Expand existing pool through infill, step outs…
  30. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 30
    Investment summary Mega discovery in Utica shale with long land tenure Strong Unconventional light oil resource play in Saskatchewan portfolio Well positioned to acquire and develop leading edge shale projects Large retained…
  31. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 31
    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…
  32. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 32
    1650 AMEC Place 801 Sixth Avenue SW Calgary, Alberta T2P 3W2 Canada Tel: (403) 777 1185 Fax: (403) 777 1578 www.questerre.com infoquesterre.com

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