Could you maybe comment on QEC's position in this area compared to other companies? What is the potential for QEC's investment here, given the results from Exxon?

G:

I've been on the road for a week so have taken a while to reply...

As much as I can say about QEC's position in horn River is that the company is still a bit player in the overall scheme of things. The scuttlebut on the street always focuses on the bigs - starting with Encana, EOG, Apache, etc. When QEC comes up, it's usually only in passing.

The gist of what's said specific to the company is that the lease is in a good spot based on the latest interpretation of the geology, and that it's far better placed than the well in the nearby Liard play. QEC's neighbours are all expected to do well on this play. They're in a relatively low-risk neighbourhood, and much of the heavy lifting in terms of infrastructure development has been and will be done by the bigs, and the province.

Because of the location and the costs of development, the large players, from the outset, have taken a very different approach to development than has been done elsewhere. They formed the 'Horn River Basin Developers Group' which has collectively contributed to shared infrastructure, [roads, etc.] to keep costs down. This has also responded, in part, to the environmental concerns of local First Nations, by reducing the overall footprint of the project, and it's effect on the land and water.

Questerre has a good business reputation locally [i.e. they know what they're doing, they pay thier bills on time, etc.] This helps when they need to get service or equipment because there are a number of other companies that go to the bottom of the list and only are attended to by contractors and service providers once the "A list" is covered...