Questfire Energy Corp. (the Corporation or Questfire) (TSX VENTURE:Q.A) is pleased to announce the results of its independent reserves evaluation effective as of December 31, 2016 as prepared by GLJ Petroleum Consultants Ltd. (GLJ), the Corporation's independent qualified reserves evaluator. The evaluation was prepared in accordance with reserves definitions, standards and procedures contained in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities (NI 51-101) and the Canadian Oil and Gas Evaluation Handbook. The financial, netback and production figures for 2016 shown herein are currently unaudited.
Highlights of the Reserve Evaluation
Questfire employed cashflow capital spending of $0.65 million in 2016 and achieved an average operating netback of $6.45 per barrel of oil equivalent (boe) and fourth quarter average production of 4,521 boe per day (boepd).
Proved plus Probable Reserves:
Total Proved Reserves:
Total Proved Producing Reserves:
Reserve life index (RLI):
The RLI at year-end 2016 is 17.5 years for P+P reserves, 10.7 years for TP reserves and 8.2 years for PDP reserves (based on annualized fourth quarter 2016 average production of 4,521 boepd and December 31, 2016 Working Interest Reserves).
Questfire minimized all spending in response to the low and uncertain commodity price environment in 2016, with only $0.65 million spent on maintenance capital projects and no new drilling. Approximately $11 million of non-core assets were sold during the year, with proceeds thereof used to reduce bank debt. These sold assets had net production of approximately 120 boepd (60 percent gas) average for 2016.
In spite of no new drilling in 2016, Questfire averaged 4,631 boepd of production (24 percent oil and natural gas liquids) for the year, with fourth quarter average production of 4,521 boepd. Compared to 2015 average fourth quarter production of 5,060 boepd, and accounting for the sold production, gives a fourth quarter year-over-year production decline rate of only 9 percent. Such decline rate is very low by industry standards and is a significant advantage for Questfire in a low commodity price environment.
Total capital spent in 2016 was $0.65 million. The operating netback for 2016 was $6.45 per boe.
Estimated and unaudited fourth quarter production of 415,936 boe divided by 92 days in the fourth quarter, multiplied by 365 days, equals an annualized figure of 1,650,181 boe.
Questfire Energy Corp. is an Alberta-based company formed to participate in oil and gas exploration, development and acquisitions focusing in the W4 and W5 regions of Alberta. The Corporation's shares trade on the TSX Venture exchange under the symbol Q.A. The Corporation currently has 22,822,401 Class A shares outstanding.
SOURCE: Questfire Energy Corp.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.