Questerre reports third quarter 2026 results

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CALGARY, Alberta, Nov. 12, 2026 (GLOBE NEWSWIRE) -- Questerre Energy Corporation (“Questerre” or the “Company”) reported today on its financial and operating results for the quarter ended September 30, 2026.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, “One year ago, we acquired PX Energy to build a business that generates free cash flow and to prove our Homogeneous Charged Continuous Oxidation (“HCCO”) technology. We are on track for $11 million in cost savings this year and successfully tested HCCO at commercial scale. In the third quarter, a furnace failure shut the plant from late July until August 18. The team completed the repairs on schedule and on budget with no recordable safety incidents, and the retort is back above 90% efficiency.”

He added, “Since then, a minor gas release and the failure of a silo in October have shown how much maintenance the previous owners of the facility deferred. We are sharpening our focus on maintenance and corrective action. Next year’s scheduled turnaround will go further than a routine overhaul, with the aim of running the plant longer between turnarounds. A solid base is also a financial one. PX Energy’s bonds are ring-fenced: Questerre has not guaranteed them and is not required to repay them. But ring-fenced is not the same as right-sized. With a larger turnaround and a prudent contingency for unexpected maintenance next year, we believe PX Energy’s debt should be restructured to fit its cash flow and investment cycle. We will support a restructuring only if we believe it is in the interests of Questerre’s shareholders.”

“Restructuring PX Energy matters well beyond next year,” he continued. “Twenty years ago, shale gas and tight oil were thought too costly to produce, until technology changed that and revolutionized North American production. We believe oil shale could be next, and PX Energy is where we are proving the technology. We plan to run an extended test of HCCO in 2027.”

Commenting on the Company’s other assets, he added, “In Quebec, the debate on local natural gas has reopened as the province weighs how to meet its energy needs while imported and renewable gas become more expensive. Public opinion is moving too. In an October poll by Ipsos for the Montreal Economic Institute, more than two-thirds of Quebecers supported developing the province’s own natural gas. During the quarter, the Government approved our carbon storage pilot near Bécancour. We also signed a mediation protocol with the Attorney General of Quebec and the Ministry of the Economy, Innovation and Energy. In Nova Scotia, we were the successful bidder in the province’s first bid round and are negotiating a Petroleum Exploration Agreement for lands in the onshore Cumberland Basin. In Western Canada, we are building our conventional production base with a four-well drilling program.”

Highlights for Third Quarter of 2026

• Completed the unscheduled turnaround at PX Energy on schedule and on budget, with no recordable safety incidents
• Received approval from the Government of Quebec for the Company’s carbon storage pilot
• Signed a mediation protocol with the Attorney General of Quebec and the Ministry of the Economy, Innovation and Energy
• Selected by the Province of Nova Scotia as the successful bidder in its first bid round and negotiating a Petroleum Exploration Agreement
• Average production of 4,634 boe per day
• Adjusted funds flow from operations of $2.3 million, after $4.8 million of idle capacity costs during the shutdown and a $5.6 million reduction in contract liabilities as customers took delivery of pre-paid product, and net cash from operating activities of $1.7 million

Production volumes for the third quarter and first nine months of 2026 increased over the comparative periods of 2025 following the acquisition of PX Energy at the end of the third quarter of 2025. Production averaged 4,634 boe per day for the quarter (2025: 2,926 boe per day) and 5,496 boe per day year to date (2025: 2,587 boe per day)⁽¹⁾. Compared to the second quarter of 2026, production decreased from 5,694 boe per day for two reasons: the PX Energy facility was shut down from late July until August 18, and this was the first full quarter after the sale of the Kakwa Central assets, which produced approximately 650 boe per day. Production for the month of October is approximately 5,300 boe per day.

Higher production volumes and higher realized oil prices increased petroleum and natural gas revenue to $50.8 million for the quarter (2025: $11.8 million) and $143.9 million year to date (2025: $34.6 million). The Company reported a net loss of $27.6 million for the quarter (2025: $5.3 million) and $17.6 million year to date (2025: $6.0 million). The quarter included net finance expense of $24.2 million, most of it non-cash. This included $15.7 million from the change in fair value of the embedded derivative in PX Energy’s secured bonds, which increased with higher forward Brent prices. No cash interest has been paid on the bonds this year.

Adjusted funds flow from operations was $2.3 million for the quarter (2025: $2.8 million) and $41.4 million year to date (2025: $11.4 million). The third quarter reflects $4.8 million of idle capacity costs during the shutdown and a $5.6 million reduction in contract liabilities as customers took delivery of product they had paid for earlier in the year. Net cash from operating activities was $1.7 million for the quarter (2025: $1.3 million) and $14.2 million year to date (2025: $10.9 million). The working capital deficit at September 30, 2026 was $13.3 million (2025: $40.3 million), compared to $19.1 million at June 30, 2026. Capital expenditures were $2.3 million for the quarter (2025: $2.2 million) and $6.3 million year to date (2025: $21.2 million). They related largely to sustaining capital in Brazil, compared to drilling and completing wells in Alberta in the prior year.

The terms “adjusted funds flow from operations” and “working capital surplus/(deficit)” are non-GAAP measures. Please see the reconciliation elsewhere in this press release.

Questerre is an energy technology and innovation company focused on responsibly developing oil and gas resources. The Company holds a significant natural gas discovery in the Quebec Utica shale, widely recognized as one of the most important undeveloped natural gas resources in Eastern Canada. The Company believes society can successfully transition its energy portfolio. With new clean technologies and innovation to responsibly produce and use energy, society can sustain both human progress and the natural environment.

Questerre is a believer that the future success of the energy 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.

Advisory Regarding Forward-Looking Statements This news release contains certain statements which constitute forward-looking statements or information (“forward-looking statements”) within the meaning of applicable securities laws in Canada. Any statements about Questerre’s expectations, beliefs, plans, goals, targets, predictions, forecasts, objectives, assumptions, information and statements about possible future events, conditions and results of operations or performance are not historical facts and may be forward-looking. Forward-looking information is often, but not always, made through the use of words or phrases such as “anticipates”, “aims”, “strives”, “seeks”, “believes”, “can”, “could”, “may”, “predicts”, “potential”, “should”, “will”, “estimates”, “plans”, “mileposts”, “projects”, “continuing”, “ongoing”, “expects”, “intends” and similar words or phrases suggesting future outcomes. Forward-looking information in this news release includes but is not limited to : the Company’s targeted cost savings at PX Energy in 2026 and 2027, the scope, timing and objectives of the scheduled 2027 turnaround, including extending the interval between turnarounds, the restructuring of the secured bonds of PX Energy’s holding company and the Company’s support for any such restructuring, the timing and results of the extended test of the HCCO technology, the Company’s views on the potential of oil shale and its technology, the Company’s views on working towards a business and political solution in Quebec, including the mediation process and the carbon storage pilot, the negotiation of a Petroleum Exploration Agreement in Nova Scotia, and the Company’s planned drilling program in Western Canada.

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. Current conditions, economic and otherwise, render assumptions, although reasonable when made, subject to greater uncertainty. Undue reliance should not be placed on forward-looking information as actual results may differ materially from those expressed or implied by forward-looking information.

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 following risk factors: additional funding requirements; exploration, development, and production risks; volatility in the oil and gas industry; prices, markets, and marketing of crude oil and natural gas; liquidity and the Company’s substantial capital requirements; political uncertainty; non-government organizations; changing investor sentiment; global financial market volatility; adverse economic conditions; alternatives to and changing demand for petroleum products; environmental risks; regulatory risks; inability of management to execute its business plan; competition from other issuers; expiration of licenses and leases; Indigenous claims; possible failure to realize anticipated benefits of acquisitions; and reputational risks.

Additional information regarding some of these risks, expectations or assumptions and other risk factors may be found in the Company's Annual Information Form for the year ended December 31, 2025, and other documents available on the Company’s profile at www.sedarplus.ca. Readers are 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.

(1) For the three-month period ended September 30, 2026, liquids production including light crude and natural gas liquids accounted for 3,565 bbls/d (2025: 1,512 bbls/d) and natural gas including conventional and shale gas accounted for 6,411 Mcf/d (2025: 8,485 Mcf/d). For the nine-month period ended September 30, 2026, liquids production including light crude and natural gas liquids accounted for 4,114 bbls/d (2025: 1,402 bbls/d) and natural gas including conventional and shale gas accounted for 8,299 Mcf/d (2025: 7,111 Mcf/d).

Barrel of oil equivalent (“boe”) amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil and the conversion ratio of one barrel to six thousand cubic feet is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalent of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

This press release contains the terms “adjusted funds flow from operations” and “working capital deficit” which are non-GAAP terms. Questerre uses these measures to help evaluate its performance.

As an indicator of Questerre’s performance, adjusted funds flow from operations should not be considered as an alternative to, or more meaningful than, cash flows from operating activities as determined in accordance with GAAP. Questerre’s determination of adjusted funds flow from operations may not be comparable to that reported by other companies. Questerre considers adjusted funds flow from operations to be a key measure as it demonstrates the Company’s ability to generate the cash necessary to fund operations and support activities related to its major assets.

		Three months ended Sept. 30,							Nine months ended Sept. 30,
($ thousands)		2026				2025			2026			2025
Net cash from operating activities		$	1,697			$	1,294		$	14,208		$	10,940
Transaction costs related to PX Energy Acquisition			-				2,689			-			2,689
Change in non-cash operating working capital			6,294				(1,170)			19,190			(2,268)
Change in contract liabilities			(5,646	)			–			8,005			–
Adjusted Funds Flow from Operations(1)		$	2,345			$	2,813		$	41,403		$	11,361
(1) Adjusted Funds Flow from Operations is a non-GAAP measure defined as cash flows from operating activities before changes in non-cash operating working capital and transaction costs related to the PX Energy acquisition, other than changes in non-cash contract liabilities related to minimum sales volumes, which are included in the measure.

For further information, please contact:

Questerre Energy Corporation
Bjorn Inge Tonnessen, Chairman +47.902.01.289 | Email : btonnessen@questerre.com
Hans Jacob Holden, Director +47.909.42.667
Jason D’Silva, Chief Financial Officer (403) 777-1185 | (403) 777-1578 (FAX) |Email: info@questerre.com