Questerre Energy Corporation Class A · TSX:QEC
Questerre Energy Corporation Class A — Investor Presentation (September 2019)
39 slides from Questerre Energy Corporation Class A's investor presentation, September 2019
Slide 1: Changing the game
Changing the game September 2019
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
Quebec COMPANY Canada STRATEGY
Slide 4: Innovating to sustainably develop hydrocarbons
Innovating to sustainably develop hydrocarbons We are re-establishing ourselves as a clean tech energy company 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 o
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 technologies we can transition our energy mix and responsibly produce clean energy Incrementalism is no longer good enough; to
Slide 6: Questerre's strategy for sustainable development
Technical expertise based on early experience with tight Questerre’s strategy for rock reservoirs sustainable development is underpinned by a science- Early exposure to focused approach and early environmental, societal experience with ESG politics and governance politics First mover on near- zero e
Slide 7: The science-focused approach continues
Developing aBalancing near-zeroeconomics emissions project for a with environment and 21 Tcf natural gas society is key The science-focused discovery in Quebec (1) approach continues - Delineating a sweet advancing projects by using spot in the Montney technology to balance with two operators target
Slide 8: Asset Overview
Quebec ASSET 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, Quebec
St. Lawrence Lowlands Quebec
Slide 11: Unlocking a significant discovery
Unlocking a significant discovery Regaining operatorship and ownership of ~100% of acreage with gross resources of over 21 Tcf+ (1) • CERI report estimates Quebec Utica could be second lowest supply gas cost in North America(2) Step by step approach over last 10 years has seen a regulatory framework
Slide 12: Social acceptability is the last hurdle
Social acceptability is the last hurdle Industry-leading social license advocacy skills Original BAPE (2011) Strategic Environmental Assessment for shale gas Strategic Environmental Assessment for oil and gas in Quebec Green Book published Energy Policy (April 2016) Passage of new hydroc
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 St. Janvier de Joly council approves first natural gas project in Quebec in 10 years(1) Clean Gas improves social license for local development based on June 2018 IPSOS polling data • Polling data shows support increases from 60% to 70% with Clean Gas approach Reve
Slide 15: A proven resource with considerable potential
A proven resource with considerable potential Prospective resources (unrisked) of 5.8 Tcf (21.3 Tcf gross) and economic contingent resources (unrisked) of 0.9 Bcf (3.9 Tcf gross)(1) Acreage classified as economic contingent resources estimated at $300 million NPV-10%(1) (Development on Hold Category
Slide 16: Outlook
Outlook Executing GR/PR strategy for Clean Tech Energy pilot • Working with government and other 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 sharin
Slide 17: Kakwa, Alberta
Kakwa tt” 7 : BS Alberta . ee © QUESTERRE
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: Expanding and delineating the sweet spot
Expanding and delineating the sweet spot Questerre has established a significant land position in the sweet spot with over 30 wells drilled to date Recent acquisition has doubled acreage position Reserves up over 60% to 28 million boe(1) Resource potential could double existing reserves Posi
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: Improving economics by reducing well costs and optimizing completions
Improving economics by reducing well costs and optimizing completions Continued improvement in drilling and completion costs on a Promising results from optimizing completions including tighter per metre of horizontal basis spacing between fractures and increasing sand tonnage (1) McDaniel Reserve R
Slide 22: Economic sensitivities
Economic sensitivities $2.6 million NPV-10% for 2P type well based on current commodity prices
Slide 23: Outlook
Outlook Flexible drilling program contingent on commodity prices • Participate in up to six to seven gross wells at Kakwa Central • Drilling at Kakwa North to ramp up based on results from final farm-in well Depending on market conditions, consider potential spin off or sale opportunity to raise cap
Slide 24: Isfir-Jafr, Kingdom of Jordan
-ISFIR JAFR- Kingdom of Jordan
Slide 25: Oil Shale Project
Oil Shale Project Assessing high yield acreage in Jordan • Best estimate of unrisked discovered petroleum initially in place of 7.8 billion barrels(1) • MOU covers 264 sq. km area with over 35 core holes drilled • Core holes indicate yields over ~40m intervals of approximately 23 gallons/ton Moving
Slide 26: Balancing social, environmental and economic benefits
Balancing social, environmental and economic benefits Significant social and economic benefits to Kingdom of Jordan • Could eliminate dependence on energy imports (~100,000 bbl/d) and reduce majority of its trade deficit • Potential for a diversified product stream including synthetic crude oil, cem
Slide 27: Corporate outlook
Corporate outlook Advance Montney development on both Kakwa Central and Kakwa North acreages • Be open to liquidity options as the market develops Work on social acceptability in Quebec while advancing legal motion • Develop a detailed pilot application • Continue ongoing discussions with towns and
Slide 28: Financial and operational overview
Financial and operational overview For the quarter ended June 30, 2019 Operating and Financial Results Capitalizing and Liquidity Funds Flow from Operations ($) $ 2.66 million Market capitalization (Sept. 6,2019) $ 102 million Working Capital Deficit ($) $0.8 million Credit facility limit ($) $ 18 m
Slide 29: Management and Board
Quebec MANAGEMENT Canada AND BOARD
Slide 30: 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 31: Forward Looking Information
FORWARD Quebec LOOKING Canada INFORMATION
Slide 32: 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 33: Forward-looking 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 34: 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 35: 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 36: 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 37: Resource Definitions
Quebec RESOURCE Canada DEFINITIONS
Slide 38: 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 39: 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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