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CALGARY, Alberta, Nov. 12, 2025 (GLOBE NEWSWIRE) — Questerre Energy Corporation (“Questerre” or the “Company”) (TSX,OSE:QEC) today reported its financial and operating results for the third quarter ended September 30, 2025.
Michael Binnion, President and CEO of Questerre, commented: “We are one step closer to our goal of commercial shale development with the acquisition of PX Energy. Their production platform and refining assets complement our portfolio of upstream assets, including resources and access to next generation technologies through our investment in Red Leaf. We are now a vertically integrated shale company with assets across the entire value chain.”
He added: “We have entered into a joint venture with a subsidiary of Nimofast, one of the largest private fuel distributors in Brazil, to pursue this opportunity. Their logistics and distribution expertise will be vital in improving product margins and profitability. They will be able to leverage PX Energy's other assets, including holding one of the ten private refinery licenses issued in the country.”
Commenting on the situation in Quebec, he noted: “This acquisition has also prompted us to consolidate our assets in Quebec. We expect to finalize the structure of this agreement shortly. Our plan is to distribute to existing shareholders, on a one-for-one basis, a new tracking share security representing ownership of these assets.”
He further added: “We are continuing our work in Quebec to seek a business and policy solution while protecting the rights of our shareholders. We are working with the government to approve our carbon storage pilot project. We are also consulting on proposed carbon storage legislation in the province. On the legal front, we have completed the examination of key government witnesses ahead of trial on the merits of the case.”
Highlights
- Questerre completes acquisition of PX Energy with over 4,000 barrels of oil shale production per day
- Questerre will form a 50/50 joint venture between PX Energy and a subsidiary of Nimofast, a leading private fuel distribution company in Brazil.
- Quebec interrogates key witnesses to protect legal rights
- Average daily production was 2,926 barrels of oil equivalent per day, net cash flow from operating activities was $1.3 million and adjusted cash flow from operating activities was $2.8 million.
Following the connection of the new Kakwa North wells in April 2025, production volumes increased compared to last year. Average production was 2,926 bbl/d for the quarter (2024: 1,913 bbl/d) and 2,587 bbl/d for the nine months ended September 30, 2025 (2024: 1,712 bbl/d).
Higher production volumes were partially offset by lower commodity selling prices, which resulted in higher revenue for the quarter and nine months ended September compared to the prior year. Oil and natural gas sales were $11.8 million for the quarter (2024: $9.5 million) and $34.6 million year-to-date (2024: $27.3 million). The company reported adjusted cash flow from operations of $2.8 million (2024: $3.4 million) for the quarter and $11.4 million for the first nine months of the year (2024: $10.9 million), and cash flow from operations of $1.3 million for the quarter (2024: $4.1 million).
Revenue was offset by higher expenses and resulted in a net loss of $5.3 million for the quarter (2024: loss of $0.3 million) and $6.0 million year-to-date (2024: net income of $0.8 million). Capital expenditures for the quarter were $2.2 million (2024: $3.4 million) and $21.2 million year-to-date (2024: $13.0 million).
The term “adjusted cash flow from operating activities” is not a measure required by IFRS. Please see the reconciliation elsewhere in this press release.
Questerre is an energy technology and innovation company. The Company is leveraging its experience gained from the early discovery of low permeability reservoirs to acquire significant high quality resources. We believe we can successfully transform our energy portfolio. With new clean technologies and innovations that produce and use energy responsibly, we can support both human progress and our natural environment.
Kesterr believes the future success of the oil and gas industry depends on balancing the economy, environment and society. We are committed to being transparent and respecting the public's role in making important decisions for our energy future.
Advice Regarding Forward-Looking Statements
This press release contains certain statements that constitute forward-looking statements or information (“forward-looking statements”), including the Company's views on the acquisition of PX Energy and its benefits to the Company, its joint venture agreement with Nimofast and the expected benefits to PX Energy and the Company, the completion of the spin-off of Quebec assets, the Company's work toward a business and policy decision in Quebec, approvals related to its carbon storage pilot project and its expectations regarding litigation on the merits in Quebec. Quebec. Forward-looking statements are based on several material factors, expectations or assumptions Questerre used to develop such statements and information, which may prove to be incorrect. Although Questerre believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them, as Questerre can give no assurance that they will prove to be correct. Because forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. In addition, events or circumstances could cause actual results to differ materially from those projected as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the Company's control, including, but not limited to: the implementation of Bill 21 by the Government of Quebec and certain other risks detailed from time to time in Questerre's public disclosure documents.
Additional information about certain of these risks, expectations or assumptions and other factors can be found in the Company's Annual Information Form for the year ended December 31, 2024 and other documents available under the Company's profile at www.sedarplus.ca. The reader is cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof, and Questerre undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable securities laws.
Certain information set forth herein may be considered “financial outlook” within the meaning of applicable securities laws. The purpose of this financial forecast is to provide readers with information about Questerre's reasonable expectations regarding the expected results of its estimated business activities for the periods indicated. Readers are cautioned that the financial outlook may not be suitable for other purposes.
(1) For the three-month period ended September 30, 2025, liquids production, including light crude oil and natural gas liquids, was 1,512 bbl/d (2024: 1,106 bbl/d) and natural gas production, including conventional and shale gas, was 8,485 million cubic feet/day (2024: 4,842 thousand bbl/d). day). For the nine months ended September 30, 2025, liquids production, including light crude oil and natural gas liquids, was 1,402 bbl/d (2024: 1,006 bbl/d), and natural gas production, including conventional and shale gas, was 7,111 mmcm. ft/d (2024: 4,236 MMcf/d).
Barrels of oil equivalent (“boe”) quantities can be misleading, especially when used in isolation. The barrel of oil equivalent conversion rate was calculated using the conversion rate of six thousand cubic feet of natural gas to one barrel of oil, and the one barrel to six thousand cubic feet conversion rate is based on the application of the burner tip energy equivalent conversion method and does not necessarily represent the economic value equivalent at the wellhead. Given that the cost ratio based on the current price of crude oil versus natural gas is significantly different from the 6:1 energy equivalent, using a conversion based on 6:1 may be misleading as a cost indicator.
This press release uses the term “adjusted cash flow from operations,” which is a non-GAAP term. Questerre uses this measure to evaluate its effectiveness.
As a measure of Questerre's performance, adjusted cash flow from operating activities should not be considered as an alternative to, or more significant than, cash flow from operating activities determined in accordance with GAAP. Questerre's determination of adjusted cash flow from operating activities may not be comparable to data reported by other companies. Koesterr considers adjusted cash flow from operating activities to be a key metric because it demonstrates the Company's ability to generate the cash needed to fund operations and support activities related to its core assets. Adjusted cash flow from operating activities is a non-GAAP measure defined as cash flows from operating activities before changes in non-cash operating working capital and excluding transaction costs associated with the acquisition of PX Energy.
| The three months ended on September 30. | The nine months ended on 30 September. | |||||||||||
| (thousands of dollars) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Net cash from operating activities | $ | 1294 | $ | 4060 | $ | 10,940 | $ | 9,829 | ||||
| Transaction costs associated with purchasing PX energy | 2689 | – | 2689 | – | ||||||||
| Change in non-cash working working capital | (1170 | ) | (632 | ) | (2268 | ) | 1027 | |||||
| Adjusted cash flow from operating activities | $ | 2813 | $ | 3.428 | $ | 11,361 | $ | 10,856 | ||||
