Questerre Energy climbs on well test in Alberta

Wed 1:36 pm by Anwar Ali

Shares of Questerre Energy Corporation (TSE:QEC) are surging over 8% higher after it announced the successful completion of a well test close to two other wells already in production.

The Calgary-based company said the 05-23 well on its joint venture property Kakwa-Resthaven in west-central Alberta concluded a seven-stage slick water fracture stimulation in the 1400-metre horizontal section. Over the final 24 hours in the 170-hour period that followed, the 70 to 100 metre well flowed 815 barrels a day of condensate and 3.7 thousand cubic feet a day of natural gas, "against anticipated gathering system pressure of approximately 2,000 kilopascals on choke sizes ranging from half inch to one inch."

During the entire test, Questerre said the well flowed at an average condensate to natural gas rate of 195 bbls per MMcf. The well, of which the company holds a 25% working interest, will soon be connected to the local gathering system.

Another joint venture well, the 16-25, has reached a total measured depth of 4,680 metres. The company expects to begin completion operations there next month. The drilling time from spud to the total measured depth took 12 days fewer than previous wells on the property.

Questerre estimates current well drilling and completion will cost less than $8 million, a savings of approximately 25% of the initial well costs of $10 million.

The company also announced it has suspended the 09-01 well, a potential gas producer, due to high sour and low liquids rates. It is exploring the option of drilling a new well on the block.

Shares have climbed 64 cents or 91% so far this year.