Terra Markets deems Oslo-listed Questerre quotation too low

Jun 04, 2010 (NORDIC BUSINESS REPORT via COMTEX) --

4 June 2010 - Terra Markets has identified a 75% upside to the quotation of Oslo-listed gas producer Questerre Energy Corporation (OSL: QEC | PowerRating) (TSX: QEC) as it considers the share price has dropped too much.

Over the past month, Questerre's stock has lost around 30% of its value as a result of the general market disturbance, while the gas price strengthened marginally over the same period.

"Seen against this background, we think that the share price decline over the period is too high and cannot be defended by fundamentals. We estimate the fair value of the share at NOK32," the broker said, basing the projection on a gas price

Several positive triggers are to be expected, according to Terra Markets. The test results from the Gentilly and Fortierville wells in the St Lawrence Lowlands, Quebec, are anticipated by the end of the third quarter of 2010.

The most important risk factors, however, are also the test results and the gas price, Terra Markets said.

By 13:34 CET on Friday, the share in Questerre had added 1.56% to NOK19.50 on the Oslo Stock Exchange.

(EUR1 = NOK7.9)