Questerre Energy Corporation Class A · TSX:QEC
Questerre Energy Corporation Class A — Investor Presentation (June 2021)
41 slides from Questerre Energy Corporation Class A's investor presentation, June 2021
Slide 1: The circular economy – a real net zero solution for emissions
The circular economy – a real net zero solution for emissions June 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 to sustainably develop hydrocarbons
Innovating to sustainably develop hydrocarbons We believe it is possible to make hydrocarbons a sustainable resource The circular economy is closer than people realize We are committed to being transparent and respectful that the public must be part of making the important choices for our energy fut
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 transition our energy mix and responsibly produce energy with lower greenhouse gas emissions Incre
Slide 6: Questerre's strategy for sustainable development
Technical expertise Questerre’s strategy for based on early experience with tight sustainable development is rock reservoirs underpinned by a science- focused approach and early experience with ESG politics Early exposure to environmental, societal and governance principles We are working now on int
Slide 7: Asset Overview
ASSET Quebec Canada OVERVIEW
Slide 8: St. Lawrence Lowlands, Quebec; Western Alberta; SE Saskatchewan/SW Manitoba
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, Quebec
St. Lawrence Lowlands Quebec
Slide 10: Unlocking a significant discovery
Unlocking 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 circular economy inclu
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 & Storage
Carbon Recycling & Storage Carbon capture 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 commercial development than most peo
Slide 13: Carbon Recycling & Storage
Carbon Recycling & Storage 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 • Relatively low cost
Slide 14: Zero-Emissions Hydrogen
Zero-Emissions Hydrogen Converts Clean Gas into an essential fuel for the future Scale production to meet growth in demand • Initial markets will include combining with natural gas for heat value and existing petrochemicals • Marine and fleet transportation as markets evolve • New industries includi
Slide 15: Zero-Emissions Hydrogen
Zero-Emissions Hydrogen Exclusivity agreement with ZEG Power for their proprietary zero-emissions hydrogen technology ZEG Power offers integration of hydrogen production and carbon capture with higher efficiency • Traditionally ~30% of costs are for carbon capture Scalable technology with current ca
Slide 16: Clean Gas
Clean Gas 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 • Engineering validated by strategic partners incl
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 including the following: • Clean Gas supply – Two to four wells completed with precision stimulation techniques and production facilities • Zero-emissions hydrogen plant – demonstration ZEG facility • CO2 storage facility
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 • Include CO2 capture and zero-emissions hydrogen pilot • Finalize Clean Gas supply engineering based on final project location Complete project application for Government consultation and regulatory approval Continue discussions with prospective strategic partner
Slide 21: Kakwa, Alberta
Kakwa Alberta
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: Revisiting pace of development in 2021
Revisiting pace of development in 2021 Ongoing discussions with operators about future development plans with near-term improvement in prices • New operator for Kakwa North No essential title preserving wells required for next 18-24 months Questerre has established a significant land position in the
Slide 24: Leveraging technology to minimize the footprint
Leveraging technology to minimize the footprint Significant investment in infrastructure including central water storage, processing facility and pipeline network • Targeting reduction of up to two thirds of fresh water usage with central water facility • Minimizing emissions by testing wells direct
Slide 25: Outlook
Outlook Participate in new drilling based on strengthening medium- term prices and available capital Consider potential spin off or sale opportunity to raise capital
Slide 26: Isfir-Jafr, Kingdom of Jordan
“ISFIRJARR ~ Kingdom of Jordan = ee
Slide 27: Oil Shale Project
Oil Shale Project 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 28: Balancing social, environmental and economic benefits
Balancing social, environmental and economic benefits Significant social and economic benefits to Kingdom of Jordan • Could eliminate dependence on energy imports (~100,000 bbl/d) and reduce majority of its trade deficit • Potential for a diversified product stream including synthetic crude oil, cem
Slide 29: Corporate outlook
Corporate outlook Prioritize engineering and permitting for Clean Tech Energy project in Quebec • Include pilot zero-emissions hydrogen and carbon capture in project design • Plan to submit project for Government consultation prior to year- end Participate in new wells at Kakwa based on medium-term
Slide 30: Financial and operational overview
Financial and operational overview For the three months ended March 31, 2021 Operating and Financial Results Capitalizing and Liquidity Funds Flow from Operations ($) $ 2.9 million Market capitalization (June 1, 2021) $ 79 million Working Capital Deficit ($) $5.4 million Credit facility limit ($) $
Slide 31: Management and Board
Quebec MANAGEMENT Canada AND BOARD
Slide 32: Board of Directors / 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 sub-classes
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 Millcreek Resource Assessment
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