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Questerre On Verge Of Testing Utica Commerciality: Dundee
12 Sep 2008 - Dow Jones Newswires
TORONTO (Dow Jones)--Questerre Energy Corp. (QEC.T) is on the verge of testing commerciality of the Utica shale play in the St. Lawrence Lowlands of Quebec, leading Dundee Securities to initiate coverage of the company at buy with a stock-price target of C$8.25.
Recent improvements in horizontal drilling and completion methods have opened up many tight reservoirs and shale plays that have previously been uneconomic, including those in the St. Lawrence Lowlands, Dundee analyst Victor Rodberg said. He added that, based on his model of the well economics of the Utica shale combined with well test data to date, he believes Questerre has the makings of a commercial project.
He noted several near-term catalysts for Questerre's share price, which is at C$2.84 in Toronto Friday, up nearly 22%. The largest near-term catalyst by far, he said, is horizontal initial production rates from Forest in the deep Utica. Drilling is underway with Forest and Rodberg expects to hear news on initial production rates in October.
Additionally, Talisman Energy Inc. (TLM) has recompleted a previous well with Questerre that provided an 18-day well test of the Utica but should also give us a future glimpse at the prospectivity of the Lorraine shale. Questerre is also drilling a well with Gastem Inc. (GMR.V) to test the shallow acreage of the Utica shale.
Dundee Securities has an investment-banking relationship with Questerre Energy Corp, and Rodberg does have a stake in the Calgary company.
Company Web site: http://www.questerre.com
-Tara Zachariah, Dow Jones NewsWires; 416-306-2100
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=7Af... You can use this link on the day this article is published and the following day.
Corrected Sept. 12, 2008 13:14 ET (17:14 GMT)
Dow Jones Newswires
09-12-08 1226ET
Copyright (c) 2008 Dow Jones & Company, Inc.
Recent improvements in horizontal drilling and completion methods have opened up many tight reservoirs and shale plays that have previously been uneconomic, including those in the St. Lawrence Lowlands, Dundee analyst Victor Rodberg said. He added that, based on his model of the well economics of the Utica shale combined with well test data to date, he believes Questerre has the makings of a commercial project.
He noted several near-term catalysts for Questerre's share price, which is at C$2.84 in Toronto Friday, up nearly 22%. The largest near-term catalyst by far, he said, is horizontal initial production rates from Forest in the deep Utica. Drilling is underway with Forest and Rodberg expects to hear news on initial production rates in October.
Additionally, Talisman Energy Inc. (TLM) has recompleted a previous well with Questerre that provided an 18-day well test of the Utica but should also give us a future glimpse at the prospectivity of the Lorraine shale. Questerre is also drilling a well with Gastem Inc. (GMR.V) to test the shallow acreage of the Utica shale.
Dundee Securities has an investment-banking relationship with Questerre Energy Corp, and Rodberg does have a stake in the Calgary company.
Company Web site: http://www.questerre.com
-Tara Zachariah, Dow Jones NewsWires; 416-306-2100
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=7Af... You can use this link on the day this article is published and the following day.
Corrected Sept. 12, 2008 13:14 ET (17:14 GMT)
Dow Jones Newswires
09-12-08 1226ET
Copyright (c) 2008 Dow Jones & Company, Inc.
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