Questerre Energy Corporation Class A · TSX:QEC
Questerre Energy Corporation Class A — Investor Presentation (September 2022)
27 slides from Questerre Energy Corporation Class A's investor presentation, Sep 12, 2022
Slide 1: Corporate Presentation
Corporate Presentation September 2022
Slide 2: Company
COMPANY Quebec Canada STRATEGY
Slide 3: 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 The solution is developing hydrocarbons responsibly with existing and new clean tech including carbon recycling and sequestration Zero-emission hubs are emerg
Slide 4: Questerre asset overview by region
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 Utah Large oil resource and a refinery project thro
Slide 5: Financial and operational overview
Financial and operational overview For the three months ended June 30, 2022 Operating and Financial Results Capitalization and Liquidity Funds Flow from Operations ($) $ 12.2 million Market capitalization (Sept. 6 2022) $ 124 million Working Capital Surplus ($) $10.6 million Credit facility limit ($
Slide 6: St. Lawrence Lowlands
St. Lawrence Lowlands Quebec
Slide 7: Seeking full value for a giant discovery
Seeking full value for a giant discovery 7 Tcf of gas risked contingent (1.6 Tcf) and prospective (5.4 Tcf) resources(1) • 2020 evaluation using US$3.70/MMBtu NYMEX & 50% chance of development was 1.6 Tcf with NPV-10 of ~$1.0 billion (best estimate contingent resources only) (2) • Potential to meet
Slide 8: A world-leading zero-emissions hub
A world-leading zero-emissions hub Circular economy is key to energy transition and meeting net-zero targets by 2050 • Plans for net-zero carbon emission hubs under development in Europe, US and Canada Questerre project would integrates key elements of this economy including carbon recycling solutio
Slide 9: Growing social acceptability
Growing social acceptability Multiple polls show majority of Quebecers support local natural gas development • Support increases from 66% of decided Quebecers to just over 77% for projects with no GHG emissions Wolinak of Abenaki First Nation execute economic development agreement with Questerre • N
Slide 10: Next steps
Next steps Pursuing claim for expropriation and judicial review application on regulations introduced in 2018 • Government making application to group all claims together for a summary dismissal – hearing on September 23 2022 • Expert witness report on damage valuation to be submitted this fall Work
Slide 11: Kakwa
Alberta | © QUESTERRE
Slide 12: 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 13: Commodity prices driving development plans
Commodity prices driving development plans Operators exercising capital discipline by maintaining pace of development within cash flow • Up to two (1.0 net) wells planned for Kakwa North in Q4 2022 – Q1 2023 • Two (0.5 net) wells planned for Kakwa Central in 2023 Current Kakwa production of ~1,400 b
Slide 14: Running room with strong economics
Running room with strong economics Over 5,000 boe/d of production for 10 years from existing Illustrative Cash Flow based on US$85/bbl and C$5.00/Mcf proved and probable reserves(1) US$10/bbl+C$1/Mcf Change = 15%-20% Change in cash flow (1) Based on Total Proved and Probable Reserves assessment by M
Slide 15: 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 16: Oil Shale
Oil Shale Utah & Kingdom of Jordan
Slide 17: Strategic investment in Red Leaf
Strategic investment in Red Leaf ~40% equity interest in company • ~US$20 million in cash, no debt • Patented proprietary technology • Multi-million barrel in place oil resource • 7,000 acres in Uinta Basin Technology redesign to reduce capital costs and improve environmental footprint • Capital and
Slide 18: Strategic investment in Red Leaf
Strategic investment in Red Leaf Recently acquired 7,000 acres in oil- producing Uinta Basin in Utah Utah Department of Air Quality permit for a 40,000 bbl/d refinery project Acreage is at end of the route for proposed Uinta Basin Railway to transport oil to markets on US Gulf Coast Working with key
Slide 19: 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) • Favorable regulatory environment with first 470MW oil shale power plant commissioned in Q2 2021 Assessing redesigned Red Leaf technology for Jordan
Slide 20: Outlook
Outlook Continue to participate in additional drilling at Kakwa based on prices Advance technology and downstream opportunities for Red Leaf Pursue law suit against Government of Quebec for full fair value • Assist partners including First Nations in protecting their rights
Slide 21: Management and Board
Quebec MANAGEMENT Canada AND BOARD
Slide 22: 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 23: Forward Looking Information
FORWARD Quebec LOOKING Canada INFORMATION 23
Slide 24: 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 25: Forward-looking statements 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 26: Millcreek Report
Millcreek Report In October 2016, Questerre commissioned an independent assessment of its oil shale resources in Jordan (the “Millcreek Report”). The Millcreek Report was conducted by Millcreek Mining Group, an independent qualified reserves evaluator, as defined by NI 51-101 with an effective date
Slide 27: 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 27
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