Questerre Energy Corporation Class A · TSX:QEC
Questerre Energy Corporation Class A — Investor Presentation (September 2021)
41 slides from Questerre Energy Corporation Class A's investor presentation, September 2021
Slide 1: The circular economy – A pathway to negative carbon emissions
The circular economy – A pathway to negative carbon emissions September 2021
Slide 2: Presentation Outline
Presentation Outline Company Strategy Asset Overview St. Lawrence Lowlands, Quebec Kakwa, Alberta Isfir-Jafr, Kingdom of Jordan Corporate Outlook Financial & Operating Overview
Slide 3: Company Strategy
COMPANY Quebec Canada STRATEGY
Slide 4: Innovating key to sustainable development
Innovating key to sustainable development We believe it is possible to make hydrocarbons a sustainable resource The circular economy based on reducing, recycling and returning carbon emissions is closer than people realize and a real ‘net-zero solution’ for clean production and clean consumption We
Slide 5: Clean Tech Energy is the future
Clean Tech Energy is the future We believe true sustainability means maintaining human progress and protecting our ecosystem at the same time By integrating new and existing cleaner technologies we can transform our energy mix and responsibly produce and consume energy with lower greenhouse gas emis
Slide 6: Executing the circular economy strategy
Executing the circular economy strategy Questerre’s strategy for Technical expertise sustainable development is based on early underpinned by a technical- experience with tight focused approach and early rock reservoirs experience with ESG politics Early exposure to environmental, societal and gover
Slide 7: Asset Overview
ASSET Quebec Canada OVERVIEW
Slide 8: Asset overview: Quebec, Alberta, Saskatchewan, Jordan, Utah
St. Lawrence Lowlands, Quebec Giant Utica natural gas discovered resource Western Alberta Condensate-rich Montney resource play with attractive economics SE Saskatchewan/SW Manitoba Proven Torquay/Spearfish tight oil production with strong netbacks Kingdom of Jordan Significant oil shale deposit bei
Slide 9: St. Lawrence Lowlands
St. Lawrence Lowlands Quebec
Slide 10: Building the circular economy on a significant discovery
Building the circular economy on a significant discovery Operatorship and ownership of ~100% of acreage with over 23 Tcf+ in gas resources(1) • CERI report estimates Quebec Utica could be second lowest supply gas cost in North America(2) Implementing a full cycle zero-emissions project through a new
Slide 11: Closing the carbon loop in Quebec
Closing the carbon loop in Quebec Circular economy is key to energy transition and meeting net-zero targets by 2050 • Sustainable development of resources and converting waste products, like GHG emissions into high value products are top priorities Questerre project integrates key elements of this e
Slide 12: Carbon recycling is essential to emissions reduction
Carbon recycling is essential to emissions reduction Carbon recycling and storage is the foundation for the circular economy • Convert waste product, CO2, into high value products – eliminate, recycle or store all emissions Multiple carbon recycling technologies under evaluation – closer to commerci
Slide 13: Carbon storage – a new opportunity in Quebec
Carbon storage – a new opportunity in Quebec Proximity to a number of large carbon dioxide emitters in Quebec • Accept CO2 and deliver Clean Gas in return through direct pipeline connections with consumers Questerre holds exclusive rights to permanently store carbon dioxide in a deeper formation ove
Slide 14: Converting Clean Gas to zero-emissions hydrogen
Converting Clean Gas to zero-emissions hydrogen Converts Clean Gas into an essential fuel for the future Scale production to meet growth in demand Use existing infrastructure with new technology • Locate production facilities near consumers where possible – create a tech hub and mitigate challenges
Slide 15: ZEG technology integrates carbon capture
ZEG technology integrates carbon capture ZEG offers integration of hydrogen production and carbon capture with higher efficiency • Traditionally ~30% of costs are for carbon capture Scalable technology with current capacity to grow from 1 tonne/day to 15 tonnes/day and beyond CIRAIG study underway t
Slide 16: Clean Gas - the foundation for the circular economy
Clean Gas - the foundation for the circular economy Clean Gas provides the energy for the circular economy • Vision of the cleanest natural gas production in the world World’s first natural gas production with near-zero emissions, zero drinking water usage and zero toxic fluids below ground • Engine
Slide 17: Progress with social acceptability
Progress with social acceptability Towns and communities eager for local economic development projects post COVID-19 • Written interest to host Clean Gas pilot project from first town with two more expected later this year • First Nations looking to participate in local Clean Gas project Farmers see
Slide 18: Regulatory Roadmap
Regulatory Roadmap Preparing application for first Clean Tech Energy project to assess CO2 storage potential Passage of new hydrocarbon legislation Passage of new environmental legislation Passage of environmental regulations Passage of hydrocarbon regulations Secure Government feedback on
Slide 19: A proven resource with considerable potential
A proven resource with considerable potential Prospective resources (unrisked) of 19.5 Tcf and economic contingent resources (unrisked) of 3.9 Tcf (1) Acreage classified as economic contingent resources estimated at $824 million NPV-10%(1) (Development on Hold Category only) (2) • Represents only 5%
Slide 20: Outlook
Outlook Advance project engineering • Apply for CO2 storage injection test • Finalize Clean Gas engineering based on final project location Complete application for Government consultation and regulatory approval Secure trial date for judicial review application
Slide 21: Kakwa
Kakwa Alberta 4, QUESTERRE
Slide 22: Condensate-rich Montney - a world-class resource
Condensate-rich Montney - a world-class resource One of the largest oil and gas fields in the world with some of the best economics • 449 Tcf of marketable gas, 14.5 billion barrels of NGLs and 1.12 billion barrels of oil(1) Sweet spots in resource plays are like discoveries in conventional oil and
Slide 23: Resuming development with better prices
Resuming development with better prices Recent M&A activity in Kakwa area Ongoing discussions with operators about future drilling plans • Participating in one (0.25 net) wells this fall • New operator for Kakwa North Questerre has established a significant land position in the sweet spot with over
Slide 24: Outlook
Outlook Participating in new drilling based on strengthening medium- term prices and available capital Consider potential spin off or sale opportunity to raise capital
Slide 25: Isfir Jafr, Kingdom of Jordan
ISFIRJAPR ee. Kingdom of Jordan en tage ree SS QUESTERRE #
Slide 26: Oil Shale Acreage
Oil Shale Acreage Assessing high yield acreage in Jordan • Best estimate of unrisked discovered petroleum initially in place of 7.8 billion barrels(1) • MOU covers 264 sq. km area with over 35 core holes drilled • Core holes indicate yields over ~40m intervals of approximately 23 gallons/ton • Favor
Slide 27: Strategic investment in Red Leaf
Strategic investment in Red Leaf ~40% equity interest in company with over US$20 million in cash and no debt Core asset has potential for rare earth elements • Essential commodity for green energy, defence and technology markets Proprietary technology combined with carbon capture produces blue hydro
Slide 28: Balancing environmental, social and economic benefits
Balancing environmental, social and economic benefits Leveraging technology to minimize the environmental footprint • Red Leaf’s EcoShale process being re-engineered to be zero- emissions • Process virtually eliminates need for external water Significant social and economic benefits to Kingdom of Jo
Slide 29: Corporate outlook
Corporate outlook Prioritize engineering and permitting for Clean Tech Energy project in Quebec • Plan to submit application for CO2 injectivity prior to year-end Participate in new wells at Kakwa based on medium-term prices • Be open to liquidity options as the market develops Advance internal engi
Slide 30: Financial and operational overview
Financial and operational overview For the three months ended June 30, 2021 Operating and Financial Results Capitalizing and Liquidity Funds Flow from Operations ($) $ 4.2 million Market capitalization (Sept 7 2021) $ 68 million Working Capital Deficit ($) $1.2 million Credit facility limit ($) $ 16
Slide 31: Management and Board
MANAGEMENT Quebec Canada AND BOARD
Slide 32: Board of Directors and Management
Board of Directors Management Michael Binnion, President & Chief Executive Officer Michael Binnion, President & Chief Executive Officer Bjorn Inge Tonnessen, Chairman John Brodylo, VP Exploration (Nexen) o Oil & Gas E&P experience & former senior equity research analyst Peter Coldham, VP Engineering
Slide 33: Forward Looking Information
FORWARD Quebec LOOKING Canada INFORMATION
Slide 34: Forward-looking information and statements
This presentation contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends“, “outlook”, “strategy”, “poten
Slide 35: Forward-looking information: risks and uncertainties
The forward-looking information and statements included in this presentation are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other fac
Slide 36: Millcreek Report
Millcreek Report Questerre is in the process of completing a conceptual study, however, at this time, given the preliminary nature of the Jordan Resource Assessment, it does not contain any estimates regarding the timing or cost to obtain commercial development nor has Questerre finalized the specif
Slide 37: Contingent resources estimates and project maturity subclasses
A range of contingent resources estimates (low, best and high) was presented in the GLJ Resource Report. Contingent resources can be sub-classified based on their project maturity sub-class which help identify a project’s change of commerciality. The project maturity subclasses for contingent resour
Slide 38: Jordan
Jordan In October 2016, Questerre commissioned an independent assessment of its oil shale resources (the “Millcreek Resource Assessment”) in the Hashemite Kingdom of Jordan (“Jordan”). The Millcreek Resource Assessment was conducted by Millcreek Mining Group (“Millcreek”), an independent qualified r
Slide 39: Resource Definitions
RESOURCE Quebec Canada DEFINITIONS
Slide 40: Resource Definitions
Resource Definitions Resources encompasses all petroleum quantities that originally existed on or within the earth's crust in naturally occurring accumulations, including Discovered and Undiscovered (recoverable and unrecoverable) plus quantities already produced. "Total resources" is equivalent to
Slide 41: Questerre Energy Corporation
Questerre Energy Corporation 1650 AMEC Place www.questerre.com 801 Sixth Avenue SW info@questerre.com Calgary, Alberta T2P 3W2 Canada Tel: +1.403.777.1185 / Fax: +1.403.777.1578
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