Questerre reports on proposed ban in Quebec

C-Eiken
QEC 22.02.2022 kl 07:15 20925

February 22, 2022, Calgary, Alberta -- Questerre Energy Corporation (“Questerre” or the “Company”) (TSX,OSE:QEC) issued a report to shareholders following the introduction by the Government of Quebec of Bill 21, An Act mainly to end petroleum exploration and production and the public financing of those activities.

https://newsweb.oslobors.no/message/554522

Michael Binnion, President and Chief Executive Officer of Questerre, stated, “Our company has more than a thirty-year history in the natural gas industry in Quebec. Our founding shareholder, Terrenex, and its partners, drilled our first well here in 1991. The law proposes to revoke and cancel our license agreements that were freely entered into by the Province of Quebec at relevant times. It also expropriates our property rights with no meaningful compensation instead of reaffirming the principle of just compensation based on adequate value.”

Over the years, we entered into many different license agreements with the Government of Quebec that clearly outlined our rights and obligations. We were required by the province to spend a substantial amount of money each year to explore for natural gas in Quebec. We were also responsible for safety and the environment. In return, we were granted rights to produce any discovery we made. We fulfilled our duties and safely operated under these agreements with virtually no complaints or problems. During this time, we were in good faith investing money in the province while the Quebec Government administered our agreements in a fair and reasonable manner.

Things changed when we finally made a potentially very commercial discovery. After years of no issues, suddenly there were complaints when we proposed to appraise and produce our discovery, not just spend money.

For some historical context, in the 1970s oil and gas policy changed dramatically in Quebec. The new policy was to make Quebec independent in energy. It was a strategic imperative that the province would be better off using its own resources. To this end, a provincially owned oil and gas company, Société Quebecoise d'Initiatives Petrolieres (“SOQUIP”), was started in 1970 to use Government money to explore for oil and gas. SOQUIP was reorganized after spending millions and not making a significant discovery. To facilitate more rapid exploration, in 1982, the Government expropriated resource rights from thousands of Quebecers and gave them fair and just compensation of a royalty in return.

The policy attracted private companies like ours who did eventually find success. The royalties granted to private citizens are now very valuable due to our work. The proposed law will expropriate these royalties from thousands of Quebecers with zero proposed compensation. There is no representative of these Quebec citizens being consulted by the Government on Bill 21.

After our discovery, we were told by successive Governments that our project required social acceptability in addition to legal compliance for us to produce the natural gas we discovered. We committed our company to excellence in social acceptability to comply with this new requirement.

We contributed to the Strategic Environmental Assessment on oil and gas activity conducted in Quebec. It is the most comprehensive environmental study on oil and gas in Canada. The conclusion of this study was the risks were low and manageable. We have seen through decades of experience elsewhere, that this is true.

We also consulted at length on a new energy policy in Quebec. This policy committed to a lower emissions future and included natural gas development to reach those goals. We also consulted on a new environmental law and regulations that are among the strictest in North America. We also consulted on a new Green Book and hydrocarbon law and the associated regulations. Up until September 2018, the Government of Quebec promised us a legal framework to obtain social license and comply with our license agreements. Even after 2018, the new Government indicated if our project gained social acceptability it could proceed.

We responded to the guidelines of the Green Book and the public comments on social acceptability of the new Government. Over this time, we engaged in considerable and comprehensive discussions and consultation with stakeholders. Based on the feedback from citizens of Quebec, including through several BAPE processes, we completely redesigned our approach to production and even consumption of natural gas.

In good faith, we committed to processes for near zero impact development, with a goal of zero emissions, zero toxic fluids, zero drinking water impact and zero fracturing. We agreed to give towns a share of profits and secured their support. We received support from many farmers groups and unions. We also agreed to give First Nations an interest in the net profits and an equity option covering their traditional territories. The new law proposes to confiscate these interests from First Nations with no compensation and the First Nations have not been invited to the consultations on the law.

As a result of our work, according to Leger polling from last fall, only 13% of Quebecers oppose our project with its new design. We believe it is more than fair to claim we have achieved social acceptability in Quebec. When we approached the Government with our new zero impact approach and confirmation that we believed we had reached a fair level of social acceptability, the unexpected response was to announce publicly a ban on Quebec oil and gas production. The reason given was to reduce greenhouse gas emissions in spite of independent evidence and studies, that demonstrate local production materially reduces global emissions. Local natural gas would use new carbon technology and avoid emissions from the long-range processing and transportation of natural gas.

Given our over thirty-year history of operating responsibly according to our license agreements and the law, plus our obvious and successful social acceptance progress, the Government announcement that it will break its agreements with us and its word to us, seems arbitrary and capricious. We understand the Government believes it has the prerogative to change its mind, change the law and not follow its own contracts. Yet, we are unaccustomed to see a developed nation confiscate the rights and ownership of its honest contractual partners while not even offering them fair, just and adequate compensation.

From an environmental perspective, this ‘ban and block’ approach has been proven ineffective time and time again for emissions and society. Ironically, this outdated mindset will lock Quebec into substantially higher emissions for much longer, likely decades. The modern approach is to transform our energy sources to low emissions energy with new carbon technology. This has led to our circular economy model to move forward on both the environment and energy in Quebec. As a result, there is no public utility in revoking our license agreements; it will instead make the global environment worse, and the province will continue to support and to be dependent upon others for its natural gas supply.

This is contrary to all sustainable development rules. One of which being, that the site of production should always be as close as possible to the site of its consumption. It is that principle which forbids Quebec from shipping its waste to less developed countries.

Through following the law, and spending hundreds of millions over a long period of time, we succeeded in finding something of great value. The Quebec Government may decide to block us from developing it and revoke our licenses and its word. But the discovery once made cannot be undiscovered and it has tremendous value to whomever owns it.

We think the Government of Quebec is making a fundamental mistake on a project that enhances Quebec society and has broad popular and local support. However, even if the Government chooses not to produce it but to keep it as a strategic reserve of natural gas, it confers great value to the citizens of Quebec. Though it is more likely, a future Government will choose to produce and profit from this giant gas field, as modern energy transformation technology becomes obvious to all. Whatever the Government pays us will be much, much less than the value to Quebec and its citizens. It is an unfair deal for our thousands of small shareholders compared to the opportunity to develop our discovery as originally agreed and promoted by the Government.

After all this time and our significant investments, we will of course spend whatever time and money is required for our many individual and institutional investors from Norway, Canada and around the world to be treated fairly. We have been blessed with loyal shareholders who have supported our efforts to succeed in Quebec, including backing us on a world-leading approach to energy transformation. We plan to work to amend and improve this law through the consultation process and the collaboration of other interested parties, and take whatever action appears necessary to protect our rights. The province has created legitimate expectations that investors would be treated fairly. It cannot simply fail to satisfy these expectations it has fueled and promoted. Predictability and trust are two defining components of free market economies seeking foreign investment. Bill 21 lacks both.

Mr. Binnion added, “It is not reasonable the actual impacted parties are not included in the consultations for this proposed law. Our efforts will also go to protecting small towns, ordinary Quebec citizens and First Nations who like our shareholders are equally impacted by the arbitrary approach of Bill 21. Given our project is demonstrated to be aimed at reducing global environmental impacts, there is no public utility in disadvantaging so many groups and the reputation of Quebec as a free society.”

C-Eiken
22.02.2022 kl 07:16 8683

We acknowledge and greatly appreciate that every day Quebecers have been open minded and that by listening to their concerns, and changing our approach, they responded with their support. We know this is not an issue of Quebec culture and ordinary Quebecers who are fair minded people who we count as friends.

Our future depends on progress and discoveries. Progress does not arise from bans or boycotts. It comes from innovative ways to use what we know, and what we discover, differently.

Questerre is an energy technology and innovation company. It is leveraging its expertise gained through early exposure to low permeability reservoirs to acquire significant high-quality resources. We believe we can successfully transition our energy portfolio. With new clean technologies and innovation to responsibly produce and use energy, we can sustain both human progress and our natural environment.


Questerre is a believer that the future success of the oil and gas industry depends on a balance of economics, environment, and society. We are committed to being transparent and are respectful that the public must be part of making the important choices for our energy future.

For further information, please contact:

Questerre Energy Corporation
Jason D’Silva, Chief Financial Officer
(403) 777-1185 | (403) 777-1578 (FAX) | Email: info@questerre.com

Advisory Regarding Forward-Looking Statements

This news release contains certain statements which constitute forward-looking statements or information (“forward-looking statements”) including, Questerre’s commitment to processes for near zero impact development with a goal of zero emissions, zero toxic fluids, zero drinking water and zero fracturing, Questerre’s plan to seek to have Bill 21 amended or, if necessary, enforce its rights under it agreements with the Government of Quebec and the potential impacts of Bill 21 on Questerre, First Nations and Quebecers. Forward-looking statements are based on several material factors, expectations or assumptions of Questerre which have been used to develop such statements and information, but 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 because Questerre can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Further, events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including, without limitation: 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 regarding some of these risks, expectations or assumptions and other factors may be found under in the Company's Annual Information Form for the year ended December 31, 2020, and other documents available on the Company’s profile at www.sedar.com. The reader is cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof and Questerre undertakes no obligations to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Certain information set out herein may be considered as “financial outlook” within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding Questerre’s reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.
Slettet bruker
22.02.2022 kl 07:38 8542

ingen pilot, case closed dessverre!!
C-Eiken
22.02.2022 kl 07:58 8384

Er der da absolut ingen info om eller meldt noget ud på ? Dette er blot et skriv fra QEC til Quebec for at vide hvordan de ser det hele hænger sammen og måske for at få noget omtale i den lokale presse som kan lægge pres på regeringen ?
Bombibitt
22.02.2022 kl 07:59 8344

Lika bra det.
Fokusera på en rejäl kompensation och gå vidare, bort från dessa galna Fransmän.
Kvike11
22.02.2022 kl 07:59 8325

The Quebec government rules the country like a dictatorship, a government that does not keep agreements
and that repeatedly lies to companies trying to do business there.
They are worse than the Russians. Banana Republic
The Quebec government will, of course, guarantee that all proceeds will go to
Questerre Energy Corporation if gas and oil are ever to be exploited in Quebec.
Can't be a problem after all, since they already have those rights and the Quebec government does not keep what they agree.
Worst liars and bandits have to be looked for for a long time.
Doubts, however, on the government coming through with their dictatorship,
which is against the people.
I want to support Questerre Energy Corporation 100%,
right now they're wasting a lot of precious time on a bunch of fools in a banana republic
Slettet bruker
22.02.2022 kl 08:19 8122

I dag blir det blodrødt over hele fjæla så nå er det bare å holde seg fast!!
Cph2500
22.02.2022 kl 08:21 8077

Så nu ryger den under 1 kr
tuja
22.02.2022 kl 08:27 7983

Tull og vas, Børs 58. Det står nada om at det ikke blir pilot med FN. At du er helt ute er greit. Men å feilinformere for å skape frykt, er lavmål.
speck
22.02.2022 kl 08:29 7951

Ta av de rosabrillene for en gangs skyld.
OPC1000
22.02.2022 kl 08:33 7882

Det står ikke at loven er vedtatt. Det er fortsatt et lovforslag som QEC vil forsøke å påvirke.
Hvorfor sende ut en slik avhandling som en børsmelding ?
Redigert 22.02.2022 kl 08:37 Du må logge inn for å svare
Kvike11
22.02.2022 kl 08:50 7746

Der venter en kæmpe erstatning til QEC, kun en tåbe mener at kursen skal længere ned.
Som tidligere nævnt kan en erstatning få kursen op i kurs 10.
Intet land er så tåbelig at de ikke vil udnytte deres resurser .
Regeringen er godt klar over det bliver en milliard ersatning, og nu har de også fået de lokale på nakken.
Det er en stor taber sag for regeringen
Fjellbris
22.02.2022 kl 08:52 7700

Helt riktig, QEC sender ut dette for å forklare myndigheter og aksjonærer vedr. deres sak. Pilot kan fortsatt bli tillatt som en vinn/vinn, men står forbudet som nå er innført er dagens melding slik jeg ser det en oppsummering av QEC sin sak og «kjøtt på beina» vedr hvorfor Jason gikk ut og sa erstatning kr 20-40.
Jensi
22.02.2022 kl 08:55 7645

jeg synes det er et fint brev , skulle vel egentlig trykkes i lokalaviserne i Quebec
jeg køber flere aktier , hvorfor lade pengene stå i banken til minusrenter , nej så tager jeg hellere de udsvinger der er med tak til Putin !
6710
22.02.2022 kl 09:23 7481

Det samme gælder dig, har du læs pm for du kommer med løgn.
Hvor står der ingen piloter til QEC hos FN, Quebec.
Denne pm er til Quebec, aktieejer, politikker, medier m.fl.
Slettet bruker
22.02.2022 kl 09:28 7414

Er ikke dette grei beskjed fra Binnion om hvordan han ser på FNs situasjon og sjansen for pilot.

Sitat Binnion: «The new law proposes to confiscate these interests from First Nations with no compensation and the First Nations have not been invited to the consultations on the law.»
tuja
22.02.2022 kl 09:35 7351

Dette er kun ett generelt skriv fra Questerre. Absolutt nada som tilsier at de hverken får erstatning eller pilot med FN:

" We plan to work to amend and improve this law through the consultation process and the collaboration of other interested parties, and take whatever action appears necessary to protect our rights. The province has created legitimate expectations that investors would be treated fairly. It cannot simply fail to satisfy these expectations it has fueled and promoted. Predictability and trust are two defining components of free market economies seeking foreign investment. Bill 21 lacks both."
mofi1
22.02.2022 kl 09:49 7236

Det er blitt en gjenganger på Qec-trådene at visse personer blåser seg opp og utbasunerer «fakta» uten noen som helst dokumentasjon.

Dette brevet fra Binnion har jo overhodet ingen ting med om myndighetene vil tillate pilot eller størrelsen på en eventuell erstatning. Binnion sier det som pr.nå er situasjonen, at myndighetene har varslet om en lov som vil forby utvinning av fossil energi, og beskriver hvordan selskapet ser på dette og hvilke følger det kan få for staten Québec.
Det vi kanskje kan lese ut av det er at kravet til en evt. erstatning vil bli høyt basert på alt hva selskapet har gjort for å følge opp ulike krav og pålegg de har fått gjennom flere år.
Slettet bruker
22.02.2022 kl 10:06 7057

Klaphat
Kontur
22.02.2022 kl 10:12 6999

Verden trenger energi. Qec skal opp
Slettet bruker
22.02.2022 kl 10:24 6880

Binnion føler seg urettferdig behandlet. Men det har han gjort i over 20 år nå uten å verken bli hørt av myndighetene eller kommet noen vei
Vestjyden
22.02.2022 kl 10:50 6717

I denne sammenhæng kan man godt bringe et kendt citat.

“Do not Steal, The Goverment hates Competition”

Beløningen kommer, hvis man har tid til at vente.
Kære venner, dette kommer ikke til at gå upåagtet hen.
Har regeringen lavet konsekvensberegning på hvad det kan koste dem. Ikke blot i Quebec, men hvordan investorerne trækker sig fra projekter og hvordan de vil blive set på som utilregnelige i femtiden.
Tænk blot på Warren der trak sig for Olie/Gasledningen der skulle gennem Quebec.
Jeg er meget spændt på at se i hvilken retning det vil gå. Questerra kan vælger retten i Quebec, og First Nations kan bringe sagen for FN.
Det bliver noget af et CV Legault får sig.
Redigert 22.02.2022 kl 14:25 Du må logge inn for å svare
Viti
22.02.2022 kl 12:12 6352

Bra volum i dag, kjem det meir info etter Torontobørsen stenger? Alltid nokon som veit meir enn andre...........
hef10ponni
22.02.2022 kl 12:32 6266

Man kan undres. Snodig å gå fra -10% på starten av dagen til +13% midt på dagen. Godt volum så noen er interessert i å kjøpe.. Noen som vet noe før vi andre kanskje?
Slettet bruker
22.02.2022 kl 12:34 6233

Dette er bare en fartsdump i bratt nedoverbakke !
Slettet bruker
22.02.2022 kl 12:36 6188

Sjovt at se så få indlæg fra XL og andre som kun ønsker QEC alt det værste på en dag som i dag 🤔

Har sagt det før……den der let sidst, ler bedst 😎 og jeg har masser af tid og venter gerne på at le til sidst 😉
børs87
22.02.2022 kl 12:41 6127

Og den fartsdumpen er i skrivende stund 17%
Mange sitter med skjegget i postkasa i dag.🙂
OPC1000
22.02.2022 kl 12:42 6096

Aksjekursen gjorde et hopp på stengingen av gassledningen.
Bove
22.02.2022 kl 12:43 6081

Ja se der ja. Angrer nå på at jeg ikke kjøpte ved åpningstider i dag. Skulle til å kjøpe, men slo det fra meg igjen. Det viser seg nå å ikke ha vært så lurt, men putt putt. Jeg har nå en del aksjer her allike vel, skulle hatt flere. Kjøper ikke nå selv om jeg tror at den vil stige, men er litt usikker på QEC akkurat nå.
bove
Kontur
22.02.2022 kl 12:46 6040

Akkurat som forventet. Også de fete nordamerikanerne trenger energi😊
Jensi
22.02.2022 kl 12:46 6035

utroligt, hvad med at lukke den som leverer gas !
den anden er jo bare et tomt rør
Cph2500
22.02.2022 kl 12:47 6012

Tillykke 😊
Men husk givinsttagning kan komme når som helst
Redigert 22.02.2022 kl 12:52 Du må logge inn for å svare
Fjellbris
22.02.2022 kl 12:48 5996

Børs87 12.41 - og da er du inne igjen, eller ble du stående igjen?😉
Her fra trader tråden i dag tidlig:

Børs58
I dag kl 08:21
190
I dag blir det blodrødt!!
tuja
22.02.2022 kl 12:51 5962

Jeg la inn kjøpsordre ved åpning i dag. Tydeligvis ett bra trekk. :)
Fjellbris
22.02.2022 kl 12:52 5947

Tuja - jeg fikk fylt på a 1,34😀
Pam
22.02.2022 kl 12:53 5921

Må innrømme at jeg ikke skjønner noe i dag, Eqnr i rødt og QEC opp i mot 20+ Må være andre moment enn dagens melding, og det kan ikke være Ukrainia konflikten. Ille om det er som du antyder. Om så er tilfelle, sett i lys av privat mail fra finansminister og sprikende meldinger på nyåret, må denne utviklingen få konsekvenser for selskapet.
sigj2
22.02.2022 kl 13:09 5706

I alle dager......rykter om pilot?? 🤣
mofi1
22.02.2022 kl 13:12 5683

Jeg skjønner ikke hva som er så vanskelig å forstå her. Selskapet drives med et godt overskudd og er pr. i dag priset ut i fra null erstatning og ingen pilot. Samtidig åpnet børsen rett ned og mange selger av frykt for ytterligere nedgang, men når gass og oljeprisen tenderer rett opp, er det begrenset hvor mye et gass og oljeselskap kan falle.

I tillegg anskueliggjorde Binnion hvilke følger et absolutt forbud mot utvinning av gass og olje vil kunne få for Québec og viste til hva en evt. erstatning ville kunne bygges på.