Questerre Energy Corporation and Stylus Energy Inc. are pleased to announce that construction and commissioning of the Vulcan central oil battery and gas compression facility is complete.
The gas compression facility provides flexibility to deliver gas to a second gas plant in the area and removes the pipeline capacity constraints on Vulcan gas production. It also provides flexibility to develop shallow gas zones in the Vulcan area and conserve solution gas from the companies’ adjacent oil pool. The facility utilization rate is dependant on a number of factors, including approval of a Good Production Practice application by the Alberta Energy and Utilities Board, additional oil and gas gathering pipelines to be constructed in the fourth quarter of 2006, and additional successful drilling in the oil pool. The licence capacity of the oil battery is 1000 bbls per day and the licence capacity of the gas compression facility is 15 mmcf per day.
Michael Binnion, President and Chief Executive Officer of Questerre, commented, “We are very pleased with the operator’s work at Vulcan to complete the central production facilities. The extra capacity will give us full flexibility to produce the Vulcan gas field for maximum financial benefit. At the same time we will be developing our oil discovery with drilling of additional identified locations.”
Questerre Energy Corporation is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development oil and gas projects in Canada.
Stylus Energy Inc. is a Calgary-based junior oil and gas natural gas company with operations in Alberta. The common shares of Stylus are listed on the Toronto Stock Exchange and trade under the symbol “STY”.
This news release contains forward-looking information. Implicit in this information are assumptions regarding commodity pricing, production, royalties and expenses, that, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in the Company’s plans, commodity prices, equipment availability, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee made by the Company that the actual results achieved will be the same as those forecasted herein.
Questerre Energy Corporation
(403) 777-1578 (FAX)
Source: QUESTERRE ENERGY CORPORATION