Questerre Energy Corporation has entered into an agreement with an experienced operator to develop its 100 per cent acreage in the Kakwa area.
“The first well at Kakwa North should spud next quarter, subject to rig availability,” said Michael Binnion, President and Chief Executive Officer of Questerre. “Given the strong condensate production and low sour content from nearby wells on our joint venture acreage we are looking forward to the results.”
The farm-in partner is an exploration and production company with extensive operating experience with the Montney Formation in Alberta.
“With this joint venture we are developing our operated acreage and preserving capital primarily for Quebec,” said Binnion. “We are working on our Quebec Clean Gas pilot as we wait for the release of the final regulations later this spring.”
Subject to the terms of the agreement, the farm-in partner has the right to drill, complete, equip and tie-in two horizontal wells targeting the Montney Formation to earn a 50 per cent interest in certain acreage held by Questerre at Kakwa North. The partner has the option to drill, complete, equip and tie-in additional wells to earn a similar interest in other acreage held by Questerre at Kakwa North and Kakwa South.
Questerre will hold a royalty interest in these initial wells and certain subsequent wells subject to standard payout provisions. Questerre currently holds a 100 per cent interest in 4,480 acres at Kakwa North along with 3,840 acres at Kakwa South and a 25 per cent interest in 10,240 acres on its joint venture block.
Questerre also reported on plans for additional activity targeting its shallow mineral rights, above and excluding Montney rights, at Kakwa North. The company was recently advised by the operator that it plans to drill up to six horizontal wells on this acreage in 2018. Questerre holds an overriding royalty interest in 4,160 acres of shallow rights at Kakwa North.
Questerre Energy Corporation is leveraging its expertise gained through early exposure to shale and other non-conventional reservoirs. The company has base production and reserves in the tight oil Bakken/Torquay of southeast Saskatchewan, and is bringing on production from its lands in the heart of the high-liquids Montney shale fairway.
A leader on social license to operate issues for its Utica shale gas discovery in the St. Lawrence Lowlands, Que, Questerre is pursuing oil shale projects with the aim of commercially developing these massive resources.
(Newswire)
