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CALGARY, Oct. 27, 2016 /CNW/ - Questerre Energy
Corporation ("Questerre" or the "Company") (TSX,OSE:QEC) is pleased
to announce that its Board has approved a capital budget of
approximately $26 million for 2017
targeting the development of its Montney joint venture acreage in the
Kakwa-Resthaven area of Alberta.
The budget follows a successful drilling program in 2016 where
the Company selectively participated in wells due to low commodity
prices and to preserve financial liquidity. Enhanced completion
programs are contributing to improvements in initial well
performance over prior years. Furthermore, the joint venture is
making investments in infrastructure that are expected to reduce
operating and completion costs. Based on these results and an
improved outlook for commodity prices, the Company plans to
participate in up to an 8 (2.0 net) well program plus additional
infrastructure proposed by the operator for 2017.
In conjunction with the approval of its capital budget, the
Company anticipates completing a private placement (the "Private
Placement") directed towards Norwegian and international
institutional investors.
The Company intends to use the net proceeds to partially fund
the 2017 capital program, repay indebtedness under its credit
facilities and general working capital purposes.
The Private Placement will consist of the issuance of up to 26.6
million Common Shares of the Company. The Private Placement will be
priced in the context of the market and will be carried out through
an accelerated book building process that will close on or before
08:00 (CET) on October 28, 2016. The
minimum subscription and allocation is for Common Shares with an
aggregate purchase price equivalent to EUR
100,000. Payment for the new shares is expected to be on or
about November 3, 2016. The Company
with the Managers (defined below) reserves the right to close or
extend the application period at any time at their sole discretion.
The result of the Private Placement is expected to be announced
prior to the start of stock exchange trading on Oslo Børs ("OSE")
on October 28, 2016.
The Private Placement is subject to receipt of all requisite
approvals, including the approval by the Toronto Stock Exchange.
The Common Shares issued are subject to certain resale restrictions
in Canada and cannot be traded in
Canada or to the benefit of a
Canadian resident for four months and a day from the delivery date.
The offering is completed in reliance on exemptions from the
Prospectus Directive (Directive 2003/71 EC as amended by Directive
2010/73 EU). The new shares will be listed without application to
the OSE upon publication of the listing prospectus as described
further below.
Pareto Securities AS and Swedbank (together the "Managers") have
been appointed as managers and bookrunners in connection with this
placement.
The Managers have entered into a share lending agreement with
primary insiders for 13.3 million shares that will be delivered to
the subscribers as tradeable shares on OSE. The remaining 13.3
million shares contemplated to be issued in the Private Placement
will be issued under a separate ISIN number and admitted for
listing on OSE following the approval of an EU compliant prospectus
by the Norwegian Financial Services Authority ("NFSA"). The new
shares issued under a separate ISIN are expected to be registered
on the Norwegian Over-the-Counter list (the "NOTC") until the
approval of the prospectus at which time they will be transferred
to the ordinary ISIN of the Company in the VPS system and tradeable
on OSE. The Company is contemplating to conduct a subsequent
offering directed towards shareholders of the Company not invited
to participate in the Private Placement. The details of such
subsequent offering, if conducted, will be provided in due
course.
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. It is bringing on production from its
lands in the heart of the high-liquids Montney shale fairway. It is a leader on
social license to operate issues for its Utica shale gas discovery in the St. Lawrence
Lowlands, Quebec. It is pursuing
oil shale projects with the aim of commercially developing these
massive resources.
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 press release contains forward-looking statements and
forward-looking information (collectively "forward-looking
statements") within the meaning of applicable securities laws. In
particular and without limitation, this news release contains
forward-looking statements concerning: the Company's 2017 capital
budget, contribution by enhanced completion programs to improving
initial well performance over prior years, the investment in
infrastructure expected to reduce operating and completion costs,
the Company's plans to participate in an 8 (2.0 net) well program,
the size, pricing and completion of the Private Placement and the
timing thereof, the use of net proceeds of the Private Placement,
the listing and trading of the shares issued pursuant to the
Private Placement, the filing of an EU compliant prospectus by the
NFSA and the potential repair issue. Forward-looking statements
typically uses words such as "anticipate", "believe", "project",
"expect", "goal", "plan", "intend" or similar words suggesting
future outcomes, statements that actions, events or conditions
"may", "would", "could" or "will" be taken or occur in the
future.
Forward-looking statements are based on a number of material
factors, expectations or assumptions of the Company which have been
used to develop such statements and information but which may prove
to be incorrect, including the satisfaction of all conditions to
the closing of the Private Placement and on the time frame
contemplated. Although the Company believes that the expectations
reflected in these forward-looking statements are reasonable, undue
reliance should not be placed on them because the Company 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,
including but not limited to: failure to obtain, in a timely
manner, regulatory, stock exchange and other required approvals in
connection with the Private Placement. Additional information
regarding some of these risks, expectations, assumptions and other
factors may be found in the Company's Annual Information Form and
Management's Discussion and Analysis prepared for the year ended
December 31, 2015. 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 the Company 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.
SOURCE Questerre Energy Corporation