CALGARY, Alberta, May 14, 2026 (GLOBE NEWSWIRE) -- Questerre Energy Corporation ("Questerre" or the "Company") reported today on its financial and operating results for the quarter ended March 31, 2026.
Michael Binnion, President and Chief Executive Officer of Questerre, commented, "The turnaround at PX Energy is producing results. In our first full quarter with management control, lifting costs in Brazil were reduced by $7.6 million or over 30% to $17.5 million from $25.5 million last quarter. With stronger oil prices in March, this contributed to Questerre generating adjusted funds flow from operations of $20.8 million, including $6.7 million in revenue related to minimum sales contracts in Brazil, compared to $4.3 million in the fourth quarter of 2025. Further cost reductions are planned for the remainder of the year, and we believe the underlying operation has room to improve."
He added, "In Quebec, the economy and energy situation is evolving. The trade dispute with the United States, a structural electricity shortage, and rising concern about energy security have together rekindled consideration of energy options including local natural gas production. We have been making the case that our Quebec Utica discovery is part of the answer. On the emissions reduction front, we met with the Government on Bill 17, their framework for carbon storage, and on our pending carbon storage pilot application. These steps toward meeting Quebec's decarbonization commitments demonstrate our commitment to finding a business and political solution. Our capital reorganization closed in January, transferring the value of our Quebec assets to preferred shareholders. We are actively evaluating paths to list those shares for trading."
Highlights
Average daily production of 6,180 boe per day
Additional 540 boe per day was invoiced as deferred revenue related to minimum sales contracts in Brazil
Adjusted funds flow from operations of $20.8 million including $6.7 million related to minimum sales contracts (net cash from operating activities of $3.1 million)
Cost cutting at PX Energy reduces lifting costs by $7.6 million to $17.5 million from $25.5 million in the fourth quarter of 2025
Corporate reorganization conveys interest in Quebec assets to preferred shares
Questerre case approved by Quebec Superior Court to advance legal process
Following the acquisition completed in September 2025, production volumes averaged 6,180 boe per day in the quarter (2025: 1,729 boe per day). An additional 540 boe per day was invoiced as deferred revenue related to minimum sales contracts. Volumes in Brazil were about 10% lower than last quarter due to reduced production to meet seasonally lower demand. For the quarter, petroleum and natural gas revenue remained unchanged from the prior quarter at $43 million with higher realized prices offsetting the impact of lower production volumes. Revenue in the period does not include any amounts related to deferred revenue for the minimum sales contracts. The Company reported a net loss of $17.8 million for the period compared to no income for the same period last year. Despite lower operating expenses in Brazil, expenses increased due to several non-cash expenses including $10 million related to the embedded derivative associated with the secured bonds.
Adjusted funds flow from operations of $20.8 million, including $6.7 million of revenue related to minimum sales contracts, compared to $4.3 million in the fourth quarter of 2025 and $3.4 million for the same period last year.
The Company incurred capital expenditures of $1.8 million (2025: $17.9 million) and reported a working capital deficit of $49.6 million at of March 31, 2026 compared to $52 million at December 31, 2025.
The term "adjusted funds flow from operations" and "working capital ...
