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Highlights

  • Q2 average production reached 3,091 boe/d, nearly double last year’s level.
  • Generated CAD 6.3M net cash from operations despite lower realized prices.
  • Filed Supreme Court appeal related to Quebec’s Bill 21 provisions.

Questerre Energy Corporation (TSX, OSE: QEC) has released its financial and operating results for the second quarter ended June 30, 2025, reporting average production of 3,091 barrels of oil equivalent per day (boe/d). The increase, almost double from the same period last year, was driven by the successful tie-in of three (1.5 net) Kakwa North wells.

Net cash from operating activities totaled CAD 6.3 million, while adjusted funds flow from operations stood at CAD 5 million. Management noted that these figures were achieved despite significantly lower realized commodity prices during the quarter, reflecting higher production volumes and operational efficiencies.

President and CEO Michael Binnion stated that the company is evaluating both owned and third-party processing capacity for current volumes and anticipated future growth. A follow-up drilling program is scheduled for the second half of next year to further develop Kakwa North.

In Quebec, Binnion reported growing interest in the company’s natural gas discovery, particularly from industrial users seeking secure supply. The resource is also being considered as a feedstock for the 550 MW Becancour thermal power plant, which may be converted to generate electricity during peak demand periods.

On the legal front, Questerre has filed an application for leave to appeal to the Supreme Court of Canada following a Quebec Court of Appeal decision to reinstate certain provisions of Bill 21. The case relates to resource development rights in Quebec, and the company continues to pursue both legal and business avenues to protect shareholder interests.

The Q2 performance highlights the impact of recent operational milestones, notably the Kakwa North tie-ins, while also underscoring the challenges posed by market pricing volatility. The legal process in Quebec remains a key factor for the company’s long-term strategy, particularly in advancing its natural gas development plans.

With higher production levels established, Questerre’s near-term focus will center on optimizing processing capacity, preparing for its next drilling campaign, and progressing legal and commercial negotiations in Quebec. Market conditions and regulatory outcomes will be closely watched as the company moves through the second half of the year.