Questerre Secures Quebec Utica Position
Calgary-based Questerre Energy said June 4 it has settled outstanding litigation with Repsol Oil and Gas Canada and struck an agreement to acquire all of Repsol’s assets in Quebec’s St Lawrence Lowlands.
Questerre and Repsol have developed the assets jointly since about 2008, but suspended activity there pending a government assessment of shale gas development in Quebec. In 2016, new legislation covering future shale gas development was passed, and regulations attached to that legislation are expected to be released by the government by the end of June, opening the door for Questerre to continue with its development plans.
“On closing, we will gain operatorship of our acreage in the Lowlands,” Questerre CEO Michael Binnion said. “We will be in a much better position to communicate directly with municipalities and address local concerns and acceptability.”
Pursuant to a letter of intent signed with Repsol, Questerre will acquire the exploration rights to 753,000 net acres in the Lowlands and all associated wells, equipment and data associated with the lands. Other consideration, including cash and securities to cover abandonment and reclamation liabilities, is about $16.1mn (US$12.45mn), Questerre said.
A resource assessment of the Lowlands asset completed in 2017 – when Questerre’s average working interest was about 26% - yielded best estimate gross contingent resources of 182bn ft3. But because only those resources within a three-mile radius of drilled wells was included in the resource mapping, the gross contingent resource estimate represents only about 16% of the total in place resource – total shale gas resources underlying Questerre's Quebec acreage has been estimated at some 5.8 trillion ft3.