Questerre Energy Corporation Class A · TSX:QEC
Questerre Energy Corporation Class A — Shareholder Meeting (June 2006)
26 slides from Questerre Energy Corporation Class A's shareholder meeting presentation, Jun 1, 2006
Slide 1: Corporate Presentation – Annual General Meeting
Corporate Presentati on Annual General Questerre Meeting Energy June 1, 2006 Corporation
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation contains forward-looking information. Implicit in this information are assumptions regarding oil and natural gas prices, production, royalties and expenses that, although considered reasonable by Questerre at the time of preparation, may prove to be incorr
Slide 3: Presentation Outline
Presentation Outline • Company Overview – Asset Overview – Management & Directors – Share Capitalization • 2005 Highlights • 2006 Highlights and New Developments • Area Overview – Beaver River Field, British Columbia – Alberta – St. Lawrence Lowlands, Quebec • Outlook • Investment Case
Slide 4: Company Overview
Company Overview • Goal is to discover a major onshore natural gas field of over 100 Bcf • Diversified portfolio of assets Beaver – Beaver River Field – tight gas resource River play plus deep exploitation play – Alberta – conventional E&P targets – St. Lawrence Lowlands – large scale St. Lawrence e
Slide 5: Management & Directors
Management & Directors • Management has extensive experience in large scale international E&P projects, unconventional reservoirs and conventional Alberta production • Founders of CanArgo Energy Corporation (CNR:AMEX,OSE) and Flowing Energy Corporation (Production growth : 0 to 3,000 boe/d; sold to
Slide 6: Board of Directors
Board of Directors • Les Beddoes, Jr. – International Exploration - Former VP Exp for Bow Valley Industries, Victoria, BC • Michael Binnion, President & Chief Executive Officer • Russ Hammond – Corporate Finance - Former Managing Director, Greenwell Montague, London, UK • David Mallory • Tom Landry,
Slide 7: Management
Management • Michael Binnion, President & Chief Executive Officer • John Brodylo, VP Exploration (Nexen) • Peter Coldham, VP Engineering & Operations (Chevron) • Jason D’Silva, VP Finance (CanArgo, Flowing) • Wayne Hauck, Geophysicist (Murphy Oil, Philips) • Richard Mindus, Operations Manager (Nexen
Slide 8: Share Capitalization
Share Capitalization Directors, Officers & Employees 18,476,391 14% Terrenex Acquisition Corporation10,698,785 8% Norwegian float (excluding insiders)69,632,535 53% Canadian float 32,469,625 25% Total 131,277,336 Options (Avg. exercise price C$0.45) 10,205,000
Slide 9: 2005 Highlights
2005 Highlights • Secured farm-in partners for both high-impact projects • Increase in NPV-10 of 2P reserves (proved + probable) from C$3.9 million to C$22.1 million (900,000 boe) • Increase in NPV-10 of 3P reserves (proved + probable + possible) from C$175 million to C$225 million (10 million boe)
Slide 10: 2006 Highlights and New Developments
2006 Highlights and New Developments • Commercial production established from the Besa River/Mattson tight gas resource play at Beaver River • Successful delineation drilling program in Vulcan – Four wells drilled to expand new Mannville pool discovery • Developed Westlock into a new core area – Com
Slide 11: Beaver River Field
Beaver River Field Western Canada
Slide 12: Beaver River Field
Beaver River Field • Two primary zones of interest – Tight gas resource play in the Besa River/Mattson - naturally fractured siltstones and shales – Hydrothermally dolomitized Nahanni -Infill drilling opportunities on a discovered field with only 15% recovery to date • Infrastructure and pipeline in
Slide 13: Besa River/Mattson Potential
Besa River/Mattson Potential • 6-10 sandstone zones tested by Amoco in 1970s but not produced • 800 meters of interbedded sandstone, siltstone and shale • Orange outlines prospective area of 7,500 acres • Yellow outlines area where highest natural fracturing believed to occur • Management estimates
Slide 14: Nahanni Potential
Nahanni Potential • Amoco abandoned Field after six initial wells in Nahanni produced 185 Bcf or 15% recovery; additional wells were uneconomic at $0.25/mcf • Management estimates of remaining reserves supported by independent evaluation – 120 Bcf in possible reserves – 540 Bcf in resource potential
Slide 15: Recent Developments
Recent Developments • Winter work program for Besa River/Mattson successfully completed • A-2 well exceeds expectations – Tested at 1.64 mmcf/d against atmospheric pressure (15 psi) – Currently on production at 2.2 mmcf/d without boost compression against 1,000 psi Duke line pressure – Continuing to
Slide 16: Alberta
Alberta Western Canada
Slide 17: Vulcan, Southern Alberta
Vulcan, Southern Alberta • 50% interest in new pool discovery in Vulcan – oil and gas delineated • Seven wells into pool to date testing at rates ranging from 250 to 1,300 boe/d each (86% success rate) • Oil is 40 degree API and receives premium pricing • Development drilling for oil this summer wit
Slide 18: Westlock, Central Alberta
Westlock, Central Alberta • New core area following acquisition of Stride Energy Ltd. • Significant land position of over 30 sections with multi zone potential • Current production over 250 boe per day post acquisition • 10 to 15 locations for remainder of 2006 • Relatively shallow wells with lower
Slide 19: Recent Developments
Recent Developments • Successful winter drilling program at Vulcan – Four wells drilled for new Mannville G Pool – Two tested gas, one tested oil and one appears to be at oil-water contact – One well drilled to extend Ensign B Mannville Pool – producing 2 mmcf/d – Two wells drilled for Horseshoe Can
Slide 20: St. Lawrence Lowlands
St. Lawrence Lowlands Eastern Canada
Slide 21: Overview
Overview • Opportunity to discover a Quebec new sub-basin onshore North St. Lawrence America- could yield many Lowlands natural gas fields • Talisman currently producing 20,000 boe per day from Trenton Black-River play across border in New York • Based on potential of analogous Appalachian Basin, we
Slide 22: Talisman Farm-in
Talisman Farm-in • Talisman will have right to drill up to four wells to earn Quebec on all acreage • Questerre will retain a 21% Montreal working interest in the land and receive a 4% royalty - Talisman – Questerre equating to a 30% interest in Farm-in the play Questerre Questerre – Gastem – • Ques
Slide 23: Recent Developments
Recent Developments • Preliminary interpretation confirms Questerre’s prospects and has identified additional drilling locations – Primary target is Trenton Black-River – Secondary target is Utica shale – economic driven resource play – Third target is Potsdam sandstone – Fourth target is fractured
Slide 24: Outlook for 2006
Outlook for 2006 • 3 to 9 oil development wells at Vulcan in Q2/Q3, production in Q3/Q4 • 1 exploration well in Vulcan for new pool in Q4 • 5 to 10 multi-horizon exploration wells in Westlock Q2/Q3, production in Q4/Q1 2007 • Spud new Besa River/Mattson well at Beaver River in Q3, results in Q4 • Fi
Slide 25: Questerre Investment Case
Questerre Investment Case Strong • Growing base of cash flow and value in Alberta well • Two large tight gas resource plays at Beaver River and Quebec balanced • Beaver River deep gas project with over 120 Bcf of potential portfolio • 1 million acres in emerging Trenton-Black River play in Quebec •
Slide 26: Contact details
1580 Guinness House 727 Seventh Avenue SW Calgary, Alberta T2P 0Z5 Canada Tel : (403) 777-1185 Fax : (403) 777-1578 Web: www.questerre.com Email : [email protected]