Questerre reports second quarter 2023 results

Calgary, Alberta -- Questerre Energy Corporation ("Questerre" or the "Company")
(TSX,OSE:QEC) reported today on its financial and operating results for the
second quarter ended June 30, 2023.

Michael Binnion, President, and Chief Executive Officer, commented, "As Quebec
is holding public consultations on hydroelectricity shortage in the next two to
three years. We are re-engaging with the Government on how our Clean Gas could
be part of the solution. Our scalable, shovel-ready project can help mitigate
the risks of curtailments and price spikes, all while retaining Quebec's
competitiveness in attracting new industries and helping meet their GHG
emissions reductions targets. The Government of Quebec also proposed a stay of
enforcement related to Bill 21. There is a hearing scheduled this October to
extend this stay."

Reporting on the Company's 40% investment in Red Leaf, he added, "Red Leaf also
advanced both their technology and the permitted wax processing facility in the
Uintah Basin in Utah during the quarter. A pre-FEED study on the facility was
completed and includes a Class IV capex estimate as well as an estimate to
incorporate carbon capture directly in the design. Collaborating with local
Jordanian companies, Red Leaf also began the design for a scaled version of
their commercial production facility."

Highlights
o	Hearing to suspend revocation of licenses under Bill 21 in Quebec scheduled
for October 2023
o	Red Leaf completes pre-FEED study for wax processing facility in Uintah Basin,
Utah
o	Average daily production of 1,978(1) boe/d with adjusted funds flow from
operation of $5.3 million

Consistent with prior periods, Kakwa continued to account for 80% of corporate
production. With one (0.25 net) well brought on production in the quarter,
production increased over the prior year. For the second quarter, daily
production averaged 1,978 boe/d (2022: 1,909 boe/d) and for the six months ended
June 30, 2023, it averaged 1,884 boe/d (2022: 1,600 boe/d). 

The higher production volumes were offset by the lower commodity prices in the
current year. For the quarter, petroleum and natural gas sales totaled $10.7
million compared to $17.0 million last year and $21.2 million year to date
compared to $26.6 million in the prior year. The lower revenue contributed to
adjusted funds flow from operations of $5.3 million (2022: $12.2 million) in the
quarter and $9.6 million for the first six months of the year (2022: $16.5
million).

The revenue also contributed to net income of $1.7 million for the quarter
(2022: $9.1 million) and $2.6 million (2022: $11.5 million) for the first half
of the year. Capital expenditures in the quarter were $2.5 million (2022: $2.8
million) and $5.7 million year to date (2022: $7.8 million).

The Company also reported on the pending renewal of its credit facility with a
Canadian chartered bank. Following a preliminary review conducted in the second
quarter, the Company anticipates its credit facilities will remain at $16
million. The renewal will take effect upon receipt of the final requisite
approvals in the third quarter. The effective interest rate on the facility for
the first half of 2023 was 7.74% (2022: 4.08%). As at June 30, 2023, effectively
no amounts were drawn on the facility and the Company held unrestricted cash and
term deposits of $35.2 million. The Company had a net working capital surplus of
$28 million (2022: $10.6 million surplus).

The term "adjusted funds flow from operations" and "working capital surplus" are
non-IFRS measures. 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.

For further information, please contact:

Questerre Energy Corporation
Jason D'Silva, Chief Financial Officer
[phone] | [phone] (FAX) |Email: [e-mail]

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
plans to re-engage with the Government of Quebec, its views on how its project
could mitigate the challenges from the anticipated electricity shortage in the
province, the timing of the next hearing related to its legal claim against the
Government, and Red Leaf's engineering for a small-scale commercial project in
Jordan. Forward-looking statements are based on several 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 implementation of Bill 21 by the Government of Quebec and
certain other risks detailed from time-to-time in Questerre's public disclosure
documents. Additional information regarding some of these risks, expectations or
assumptions and other factors may be found under in the Company's Annual
Information Form for the year ended December 31, 2022, and other documents
available on the Company's profile at www.sedar.com. The reader is cautioned not
to place undue reliance on these forward-looking statements. The forward-looking
statements contained in this news release are made as of the date hereof and
Questerre undertakes no obligations to update publicly or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, unless so required by applicable securities laws.

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.

(1) For the three-month period ended June 30, 2023, liquids production including
light crude and natural gas liquids accounted for 1,159 bbls/d (2022: 1,157
bbls/d) and natural gas including conventional and shale gas accounted for 4,911
Mcf/d (2022: 4,510 Mcf/d). For the six-month period ended June 30, 2023, liquids
production including light crude and natural gas liquids accounted for 1,091
bbls/d (2022: 987 bbls/d) and natural gas including conventional and shale gas
accounted for 4,760 Mcf/d (2022: 3,682 Mcf/d).

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 surplus" 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    Six months ended 
                                                   June 30,	       June 30,
($ thousands)         	                       2023	  2022      2023       2022
Net cash from operating activities	    $ 4,133   $ 10,162	 $ 8,871   $ 15,066
Change in non-cash operating working capital  1,202	 2,021	     831      1,407
Adjusted Funds Flow from Operations	    $ 5,335   $ 12,183	 $ 9,612   $ 16,473

Working capital surplus is a non-GAAP measure calculated as current assets less
current liabilities excluding risk management contracts and lease liabilities.

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