Translated from the following link: www.stocklink.no/Article.aspx?id=100085

By: Karsten Olav Coldevin - StockLink.no

Published: 01/24/2013 11:15:17 - Updated: 1/24/2013 3:41:13 p.m.

The company is investing heavily in Montney, Alberta, and was present to explain what values ​​are there.

Michael Binnion, chief of Questerre Energy (KC / Stock Link Imarket)

This article was first published on Imarket Xpress.

- We are here every January, but this time also to discuss our Montney acerage, says Michael Binnion, head of the Canadian energy company Questerre Energy.

Binnion speaks warmly of Montney field, which he believes will pave the way for a breakthrough for the company. He is pleased to have the first well in production during the fourth quarter.

The volume of production will increase from the third quarter, and prices are relatively constant. This should ensure increasing revenues.

- The cash flow in the fourth quarter will be higher than in the third quarter.

2013-boom

Binnion explains why the companys stock has risen by 30 per cent since the beginning of the year and explains that the Montney field in Alberta where Questerre recently expanded its area is the most attractive oil and gas sector in Canada at the moment.

- An expansion of our Montney acerages has been going on for a year and has cost us between 30-35 million Canadian dollars including drilling costs, explains Binnion adding that hectare values ​​in the area have increased tenfold in the same period. We've drilled three 2,000 barrels-per-day wells in a row and are in the process of drilling the fourth well.

Profitability Today

Gas prices are now over $3, but Binnion specifies that the company does not invest on the assumption that the price of gas will increase, but aims to be profitable even at current price levels. Binnion emphasizes that the attractive Montney gas and liquid compositions provide a better return than just dry gas.

- We earn a five dollar premium for condensate, while for the gas itself is we gain nothing. All profitability comes from condensate right now, he stressed.