Questerre Says It's Not Affected by Gas Exploration Halt in St. Lawrence

By Sean B. Pasternak - Sep 27, 2010 4:24 PM ET

Questerre Energy Corp. said its natural gas projects in Quebec aren’t affected by a provincial ban on offshore drilling in the Gulf of St. Lawrence.

Questerre is exploring for gas in the St. Lawrence lowlands, which is not part of the exploration halt, said Anela Dido, a spokeswoman for the Calgary-based company.

“It has absolutely nothing to do with us. We participate in onshore, and this is strictly for the Gulf and offshore drilling and exploration in the St. Lawrence River,” she said.

Questerre fell 29 cents, or 11 percent, to C$2.47 in 4 p.m. trading on the Toronto Stock Exchange, the largest drop in more than four months.

The Quebec government said exploration in the estuary and in the northwest region of the Gulf of St. Lawrence has to be done in the name of “sustainable development,” according to a statement from the province’s natural resources ministry today. The ministry said exploration may disrupt the tourism and fishing industries in the area. The government ordered an environmental review to be completed in 2012.

To contact the reporter on this story: Sean B. Pasternak in Toronto at spasternak@bloomberg.net.

To contact the editor responsible for this story: David Scanlan at dscanlan@bloomberg.net.