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CORPORATE PRESENTATION – Questerre Energy Corp.

Questerre Energy Corp. · Jan 26, 2012 · 34 slides

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Slides

  1. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 1
    Corporate Presentation Oslo, Norway January 2012
  2. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 2
    Presentation outline Company & Market Overview Oil Shale Red Leaf & EcoShale Process Antler, Saskatchewan St. Lawrence Lowlands, Quebec Outlook Investment Summary 2
  3. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 3
    Company overview Developing oil shale to create shareholder value Three existing projects with goal of adding net recoverable resources in excess of several hundred million barrels Option to license proprietary process to recover oil…
  4. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 4
    Asset overview Nonconventional Oil Utah & Wyoming Commercialization project in Utah Early stage project in Wyoming Eastern Saskatchewan 100,000 net acres overlying an established deposit Conventional Southeast…
  5. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 5
    Financial overview Operating and Financial Results Quarter ended September 30 2011 2010 Working capital () 114 million 155 million Debt Nil Nil Cash Flow from operations () 3 million 1.4 million Production (boe/d) 604 649 Oil…
  6. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 6
    Market overview Nonconventional has become the new conventional Conventional production in North America being replaced by nonconventional oil and gas Resource capture has become a priority for super majors and international…
  7. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 7
    Market overview Energy paradigm shift has created engineering innovation Steam Assisted Gravity Drainage (SAGD) process invented in early 1970s has revolutionized oilsands recovery over the last ten years Provincial energy agency…
  8. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 8
    Oil Shale 8
  9. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 9
    Oil shale Fine grained sedimentary rock rich in organic matter known as kerogen Kerogen formed from decaying organic material by heat and pressure in environment similar to conventional oil Different from shale oil (i.e. where…
  10. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 10
    Oil shale Heating in absence of air to produce oil from kerogen known as retorting Produces natural gas, hydrogen, condensate, oil and spent shale Either done on surface or subsurface Processes to extract oil from shale are well…
  11. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 11
    Projects Saskatchewan Acquired 100% interest in over 100,000 acres at Crown land sales with a 2-year work program Situated in one of Canadas largest oil shale deposits Planning 2012-2013 work program to include core holes and…
  12. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 12
    Red Leaf investment US25 million investment in Red Leaf planned equity financing Super major to participate in equity financing on same terms Non-exclusive option to license Red Leaf process and technology but exclusive for any…
  13. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 13
    EcoShale - In-situ capsule process Innovative approach that moves the machines to the rocks instead of moving the rocks to the machines Incorporates benefits and avoids challenges of both surface and subsurface processes…
  14. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 14
    Rationale for strategy Opportunity fits corporate strategy of high impact unconventional oil License to proprietary process is a competitive advantage to capturing large oil resources at low cost Risk mitigation through partners and…
  15. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 15
    Antler, Saskatchewan 15
  16. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 16
    Antler 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 positive…
  17. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 17
    Key statistics Infill and step out locations 30 Exploration acreage (sections) 25 2P Reserves Dec 2010 (million bbls) 1.4 2010 Recycle ratio 2.5 (2P Reserves including future capital) 2010 Netbacks per barrel 63.12 (2010…
  18. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 18
    Future development Continue infill and step out drilling in main pool and MAIN POOL recently acquired area Secondary recovery is being successfully applied SINCLAIR in adjacent Sinclair pool in WATERFLOOD Manitoba Potential for…
  19. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 19
    Antler strategy Goal is to increase production in Antler to achieve target 1,500 - 2,000 boe/d during SEA in Quebec Move from 1 rig to 2 rigs and contract frac crew for 2012 Plan for 10-15 wells per rig per year depending on…
  20. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 20
    St. Lawrence Lowlands, Quebec 20
  21. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 21
    Where Questerre is currently 18 Tcf prospective recoverable resource on acreage 4.4 Tcf net to Questerre Land position in the heart of the fairway Tenure recently extended to 2021 In advanced piloting phase 21
  22. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 22
    Prerequisites for development Strategic Environmental Assessment underway over next two years Complete advanced piloting phase and sweet spot identification Establish hydrocarbon legislation Achieve social acceptability Develop…
  23. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 23
    Outlook 23
  24. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 24
    Outlook Advance oil shale projects Participate in Red Leaf equity offering and conclude agreement during first quarter 2012 Red Leaf scheduled to begin construction on Utah pilot with supermajor later this year Commence field work…
  25. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 25
    Investment summary Oil shale projects offer opportunity to capture significant oil resources Strong Mega discovery in Utica shale with long land tenure portfolio Nonconventional light oil resource play in Saskatchewan to provide base…
  26. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 26
    Appendix 26
  27. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 27
    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…
  28. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 28
    EcoShale Process - Excavation 28
  29. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 29
    EcoShale Process Capsule Construction 29
  30. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 30
    EcoShale Process Finished Site 30
  31. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 31
    EcoShale Process 31
  32. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 32
    EcoShale Process 32
  33. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 33
    EcoShale Process 33
  34. CORPORATE PRESENTATION – Questerre Energy Corp. – slide 34
    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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