Questerre has reported on its financial and operating results for the third quarter of 2008.
"The appraisal of our major shale gas discovery in Quebec began in the third quarter with excellent early results," commented Michael Binnion, President and Chief Executive Officer. "Pilot programs by our partners are on track to assess the commerciality of the Utica and Lorraine shales. We were also encouraged by a 10 mmcf/d test of the Liard shales at the Beaver River Field in British Columbia."
"The success of the drilling program in Antler largely contributed to our improved financial results during the quarter," Binnion added. "Despite lower realized prices, cash flow from operations was $5.41 million up from $5.14 million in the preceding quarter. We maintained a strong balance sheet with no debt and positive working capital of over $67 million at the end of the quarter."
"Our financial strength and conventional assets allows us to weather these challenging markets and thoroughly evaluate what could yet prove to be the most valuable natural gas find in Canada."
Cash flow from operations for the third quarter of 2008 grew to $5.41 million from $2.41 million in 2007 and $5.14 million in the second quarter. The increase reflects the higher oil weighting in the Company's production profile and stronger commodity prices and netbacks during the quarter. The Company maintained its financial position with a working capital surplus of $67.83 million at September 30, 2008 as compared to $10.00 million at December 31, 2007.
Petroleum and natural gas revenue for the three months ended September 30, 2008 was $8.89 million. This represents a 105% increase over revenue of $4.34 million in the same period in 2007 and relatively unchanged over revenue of $9.04 million in the second quarter of this year. With average daily production of 1,292 boe/d (2007: 1,206 boe/d) in the quarter, higher commodity prices were primarily responsible for the higher revenue. The Company reported net earnings of $0.29 million for the quarter as compared to a loss of $0.68 million in 2007.
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