The oil and gas expert Pareto is still very positive, they dont see this delay as a big problem.

QEC - Delays St Edouard pipeline project, modest negative share price reaction expected



Questerre has chosen to delay construction of a pipeline and acquisition of new seismic in the St Edouard area (location of February 2010 horizontal well) until after Talisman has received results from fracturing of the two remaining horizontal wells. This delay is not much of a surprise and we expect only a modest negative share price reaction



} Questerre has chosen to delay start up of the pipeline tie-in of the St. Edouard well (and new seismic around St Edouard) until after Talisman has received the fracturing results from the two remaining horizontal wells (TLM last week confirmed the wells will be fractured as soon as possible this year, subject to equipment availability)

} We are not surprised over this delay, after the two Talisman wells in October were delayed from Q4'10 to Q2'11. With the current low share price and weak recent performance, we do not think QEC should fall much on this

} Further, the company reports it has received strong support from the local population in the area, with over 90% of landowners supporting Questerre/Talisman's shale gas activities

} As a further positive sign, the Quebec Institute of Public Health (ISPQ) has released a report confirming there is little risk of hydraulic fracturing contaminating groundwater.

} We have a BUY recommendation and NOK 30 Target Price on QEC

(Not translated by google)