Questerre Energy Corporation Class A · TSX:QEC
Questerre Energy Corporation Class A — Investor Presentation (September 2020)
37 slides from Questerre Energy Corporation Class A's investor presentation, September 2020
Slide 1: Helping restart the Quebec economy
Helping restart the Quebec economy September 2020
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 We are committed to being transparent and respectful that the public must be part of making the important choices for our energy future
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 low greenhouse gas emissions Increme
Slide 6: Questerre's strategy for sustainable development
Technical expertise based on early Questerre’s strategy for experience with tight sustainable development is rock reservoirs underpinned by a science- focused approach and early Early exposure to experience with ESG politics environmental, societal and governance principles Pandemic highlights impor
Slide 7: The science-focused approach continues
Developing a near-zero Balancing emissions project for a economics with 23 Tcf natural gas environment and The science-focused discovery in Quebec (1) society is key approach continues - Delineating a sweet advancing projects by using spot in the Montney clean technology to balance with two operator
Slide 8: Asset Overview
ASSET Quebec Canada OVERVIEW
Slide 9: Asset overview by region
Western Alberta Condensate-rich Montney resource play with attractive economics SE Saskatchewan/SW Manitoba Proven Torquay/Spearfish tight oil production with strong netbacks St. Lawrence Lowlands, Quebec Giant Utica natural gas discovered resource with Lorraine upside Kingdom of Jordan Significant
Slide 10: St. Lawrence Lowlands
St. Lawrence Lowlands Quebec
Slide 11: Unlocking a significant discovery
Unlocking a significant discovery Regained 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) Government of Quebec actively seeking projects to aid in economic recovery a
Slide 12: Securing social acceptability is the last requirement
Securing social acceptability is the last requirement Social acceptability now a pre-requisite to seeking Government approvals Bill C-61 gives Government power to fast track essential projects Green Book published Energy Policy (April 2016) Passage of new hydrocarbon legislation Passage of n
Slide 13: A game changer: Quebec Clean Tech Energy
A game changer: Quebec Clean Tech Energy Vision of cleanest natural gas production in the world Targeting near-zero emissions, zero drinking water usage and zero toxic fluids below ground Aiming for 100% biodegradable chemical usage by 2030 Clean Tech alliance developing detailed engineering • Forma
Slide 14: Progress with social acceptability
Progress with social acceptability Farmers seeking secure energy sources for heating and crop drying following propane shortages in 2019 and 2020 Towns and communities seeking local economic development • Municipalities to share in economic benefits with a 3% interest in projects • First Nations loo
Slide 15: A proven resource with considerable potential
A proven resource with considerable potential Prospective resources (unrisked) of 23.8 Tcf and economic contingent resources (unrisked) of 4.1 Tcf (1) Acreage classified as economic contingent resources estimated at $997 million NPV-10%(1) (Development on Hold Category only) (2) • Represents only 5%
Slide 16: Outlook
Outlook Executing GR/PR strategy for Clean Tech Energy pilot • Working with stakeholders for social acceptability • Clean tech energy alliance building to achieve vision of world’s cleanest natural gas production • Introducing the benefits of clean tech energy and revenue sharing with small towns •
Slide 17: Kakwa
Kakwa Alberta
Slide 18: 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 19: Moderating pace of development in 2020
Moderating pace of development in 2020 Both operators have suspended development plans in current environment Questerre participated in one well this winter Government extensions for near-term expiring acreage potentially mitigates drilling requirements for next 12-24 months Questerre has establis
Slide 20: 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 21: Outlook
Outlook Suspend non-essential capital investment and reduce operating costs where possible Depending on market conditions, consider potential spin off or sale opportunity to raise capital
Slide 22: Isfir Jafr, Kingdom of Jordan
“ISFIRJARR ~ Kingdom of Jordan = ee
Slide 23: 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 Moving
Slide 24: 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 25: Corporate outlook
Corporate outlook Suspend all non-essential capital investment to preserve liquidity • Be open to liquidity options as the market develops Grow local acceptability for Clean Tech Energy project • Continue ongoing discussions with farmers, towns and MRCs including revenue sharing plan • Engage with s
Slide 26: Financial and operational overview
Financial and operational overview For the quarter ended June 30, 2020 Operating and Financial Results Capitalizing and Liquidity Funds Flow from Operations ($) $ 0.20 million Market capitalization (Sept 1, 2020) $ 47 million Working Capital Deficit ($) $9.30 million Credit facility limit ($) $ 20 m
Slide 27: Management and Board
Quebec MANAGEMENT Canada AND BOARD
Slide 28: 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 29: Forward Looking Information
FORWARD Quebec LOOKING Canada INFORMATION
Slide 30: 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 31: 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 32: 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 33: Contingent resources estimates
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 34: 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 35: Resource Definitions
RESOURCE Quebec Canada DEFINITIONS
Slide 36: 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 37: 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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