THIS NEWS RELEASE IS NOT FOR DISSEMINATION OR DISTRIBUTION IN
He added, “We are now more optimistic about our Clean Tech Energy project. The pandemic has stressed the importance of supply chains and self-sufficiency in
Highlights
- Implementing cost-cutting measures to preserve liquidity following collapse in oil prices and coronavirus pandemic
- Received Government approvals for
Quebec acquisition - Decline in future oil prices impaired carrying value of assets by
$113 million - Average daily production of 2,078 boe/d with adjusted funds flow from operations of
$2.5 million
Consistent with prior periods, Kakwa continued to account for over three quarters of corporate production. During the first quarter of 2020, daily production averaged 2,078 boe/d (2019: 1,944 boe/d). Despite materially lower oil prices in
For the first quarter of 2020, the Company generated adjusted funds flow from operations of
The term "adjusted funds flow from operations" is a non-IFRS measure. Please see the reconciliation elsewhere in this press release.
Questerre is an energy technology and innovation company. It is leveraging its expertise gained through early exposure to low permeability reservoirs to acquire significant high-quality resources. We believe we can successfully transition our energy portfolio. With new clean technologies and innovation to responsibly produce and use energy, we can sustain both human progress and our natural environment.
Questerre is a believer that the future success of the oil and gas industry depends on a balance of economics, environment, and society. We are committed to being transparent and are respectful that the public must be part of making the important choices for our energy future.
Advisory Regarding Forward-Looking Statements
This news release contains certain statements which constitute forward-looking statements or information (“forward-looking statements”) including the Company’s focus on preserving liquidity and the long-term value of its assets, eliminating all non-essential investment, the suspension of activities by the operators at Kakwa until prices improve, the Company’s ability to adjust capital spending quickly in response to changing commodity prices, its efforts to reduce operating costs and overheads, its optimism about its Clean Tech Energy project, its belief that the timing for the project could be improving, and the Company’s anticipation that adjusted funds flow from operations and capital spending will decrease over the remainder of this year.
Forward-looking statements are based on a number of material factors, expectations or assumptions of Questerre which have been used to develop such statements and information, but which may prove to be incorrect. Although Questerre believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Questerre can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Further, events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including, without limitation: the effect of COVID-19 on the markets and the demand for oil and natural gas; commitments to cut oil production by
Certain information set out herein may be considered as “financial outlook” within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding Questerre’s reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.
Barrel of oil equivalent (“boe”) amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil and the conversion ratio of one barrel to six thousand cubic feet is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalent of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
This press release contains the terms “adjusted funds flow from operations” and “working capital deficit” which are non-GAAP terms. Questerre uses these measures to help evaluate its performance.
As an indicator of Questerre’s performance, adjusted funds flow from operations should not be considered as an alternative to, or more meaningful than, cash flows from operating activities as determined in accordance with GAAP. Questerre’s determination of adjusted funds flow from operations may not be comparable to that reported by other companies. Questerre considers adjusted funds flow from operations to be a key measure as it demonstrates the Company’s ability to generate the cash necessary to fund operations and support activities related to its major assets.
Three Months Ended | ||||||
($ thousands) | 2020 | 2019 | ||||
Net cash used in operating activities | $ | 4,561 | $ | (592 | ) | |
Interest received | (138 | ) | (111 | ) | ||
Interest paid | 187 | 174 | ||||
Change in non-cash operating working capital | (2,150 | ) | 2,983 | |||
Adjusted Funds Flow from Operations | $ | 2,460 | $ | 2,454 |
Working capital surplus is a non-GAAP measure calculated as current assets less current liabilities excluding risk management contracts and lease liabilities.
For further information, please contact:Questerre Energy Corporation Jason D’Silva, Chief Financial Officer (403) 777-1185 | (403) 777-1578 (FAX) | Email: info@questerre.com
Source:
2020 GlobeNewswire, Inc., source