BRIEF-Questerre updates Montney activities, sees Q4 capex of CAD 20 mln

Fri Oct 17, 2014 1:09am EDT
 
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OSLO, Oct 17 (Reuters) - Questerre Energy Corp 
    * Recent developments in the Kakwa-Resthaven area of west
central Alberta: Production from the Company's joint venture
acreage resumed earlier this month following a scheduled
shut-down for third party processing plant maintenance. 
    * Current production, net to Questerre, from this acreage is
approximately 1,000 boe/d. 
    * Combined with light oil production primarily from
Saskatchewan, total Company production is now about 1,500 boe/d.
    * Completion operations are scheduled to commenceshortly on
three recently drilled wells on the jointventure acreage
including the 04-19-63-5W6M well("04-19 Well") well,
01-14-63-6W6M well ("01-14 Well")and the 03-30-63-5W6M well
("03-30 Well").          
    * Questerre holds a 25% working interest in these wells. 
    * Subject to the completion, equipping and tie-in, two of
these wells are scheduled to be on production prior toyear-end
and the third once central processingfacilities are expanded
early in the new year. 
    * The joint venture has contracted two rigs with
onedelineating the acreage to the west of the existingproduction
and the second focused on drilling infill wells.
    * Status of completion operations on the 14-29-63-6W6M well
at Kakwa North: During the fracing operations, a leak was
discovered in the casing in the horizontal section. This has
prevented operations from continuing.
    * Operations to repair the leak are now being organized.
Subject to equipment availability, fracing and testing
willresume once these repairs are completed.
    * The Company also reported that it is finalizingdiscussions
to contract a rig and the associatedequipment for its next well
at Kakwa North that isscheduled to spud prior to year-end. 
    * Preliminary engineering work is also underway for a
pipelinetie-in at Kakwa North to a third party processing plant.
    * At Kakwa South, the Company is finalizing the equipping
and tie-in of the 16-07-62-5-W6M well, which is expected to be
on stream by mid-November.
    * The Company anticipates its capital expenditures forthe
fourth quarter of this year will be approximately $20 million
and will be financed by its working capital, cash flow and
undrawn credit facilities of $50 million.

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 (Reporting by Camilla Knudsen)