Translated from the following Norwegian link:

http://e24.no/boers-og-finans/article3612914.ece

Questerre CEO Michael Binnion does not believe a takeover offer is imminent , but points to the three other factors that could send the stock to a new historic high.

Untill we have a safe commercial operation, we are not attractive enough to be bought up. "We'll have to achieve that ourselves", said Michael Binnion. E24 interviewed CEO of the Canadian Questerre (QEC) about eight months after we last met him in connection with a visit to their existing and potential investors in Norway. In the eight months that have passed, the gas company has been through a tremendous period when they have made a huge gas discovery in Quebec, doubled their share price and brought in around 129 million U.S. dollars with a share issue. In August last year Binnion said he was confident that the company would start production without the need for raising more capital. What made him change his mind? - If we had waited to too long to increase our capital we would have been scraping the bottom of the barrel before we had started production. I think we would have managed, but we felt it was appropriate to take advantage of the positive market.

Twice oversubscribed.

A company that desperately needs money is not in a good negotiating position, and we therefore decided it was prudent to raise capital before we absolutely had to, "explains Binnion. - The worst-case scenario would have been to run out of cash during the transition to production phase. Losing it all at the finishing line would be the worst thing that could have happened. There was little indication that Questerre was in a poor negotiating position when the issue was conducted in March - it was oversubscribed twice. Just a week earlier Questerre reported a solid gas discovery in one of the wells in its field in St. Lawrence Lowlands in Quebec. The news about gas discovery was brought forward. It's normal to complete a long test phase before issuing the results of test drilling. But this time the company decided to publish the news right away. - We chose to go out with the news earlier than usual, as gosip about the good results was spreading. Individuals were photographing the site, and we thought it was appropriate to publish the news ourselves, "explains Binnion.

All time high.

In March, Questerre stopped just short from the all-time trading high - 30 kroner - on the Oslo Stock Exchange. It has since fallen back a little, and the stock traded Monday for 21.50 kroner. Binnion believes that the roof might blow off this year. If three critical elements fall into place, the price will skyrocket up again, according to the Questerre commander. Firstly, the company will drill 3 to 6 new wells in the same field that gave so much success this winter. Secondly, the company will build a new pipeline to transport the gas, which hopefully will begin to flow during the year. Thirdly - and this is less under its control - Questerre hope that the province of Quebec will adopt legislation that will make it faster and easier to obtain exploration and production licenses. - If these three things fall into place, I believe investors will reward us with a new peak for the share listing, said Binnion. -

No buyout.

Questerre is a favorite among day traders on the Oslo Stock Exchange, and buy-out rumors are rife. Binnion however does not believe this option so likely. - As long as we have no production, we,re not as attractive to larger companies. Therefore, we have to do this on our own, "he said. The hope - and plan - is that the company will start gas production from wells in Quebec during the year - or at least next year.