This article was corrected on Mar. 9.
Questerre Energy Corp. has joined with an undisclosed partner in its Kakwa North acreage’s Montney formation in Alberta, BC. Questerre also will drill as many as six shallower horizontal wells on the acreage this year.
Questerre Chief Executive Officer Michael Binnion said the first Kakwa North well should be spudded next quarter, subject to rig availability.
Nearby wells have shown strong condensate production and low sour content. The unnamed company has operating experience in Alberta’s Montney shale play. Subject to the terms of the agreement, Questerre’s partner has the right to drill, complete, equip and tie-in two horizontal wells targeting the Montney formation to earn a 50% interest in certain acreage held by Questerre at Kakwa North, and a similar arrangement exists for certain acreage at Kakwa South.
Questerre will hold a royalty interest in these initial wells and subsequent wells subject to standard payout provisions. Questerre currently holds a 100% operating interest in 4,480 acres at Kakwa North along with 3,840 acres at Kakwa South and a 25% interest in 10,240 acres on its joint venture block.
Questerre holds an overriding royalty interest in 4,160 acres of shallow rights at Kakwa North.
Contact Tayvis Dunnahoe at [email protected].
