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QUESTERRE FOR IMMEDIATE RELEASE THIS NEWS RELEASE IS NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES OF AMERICA TO UNITED STATES NEWSWIRE SERVICES OR UNITED STATES PERSONS Calgary , Alberta -- August 11 , 2021 - Questerre reports second quarter 2021 results Questerre Energy Corporation ( " Questerre " or the " Company " ) ( TSX , OSE : QEC ) reported today on its financial and operating results for the second quarter ended June 30 , 2021 . Michael Binnion , President and Chief Executive Officer , commented , " We took advantage of higher prices to reduce net debt in the first half of the year . Our net debt stands at under $ 2 million compared to approximately $ 8 million at year - end . Although capital spending has been limited to date , if prices remain strong , we could see additional drilling at Kakwa late this fall or early winter . " He added , " During the quarter , we also began work on the carbon dioxide recycling and storage elements for the circular economy in Quebec . These are essential to reducing not only the emissions from production but also usage of our clean gas . We are planning for permits for a small - scale project to demonstrate this storage potential later this year . " Highlights • Assessing carbon dioxide storage project as first phase of Clean Tech Energy project in Quebec Average daily production of 1,479 boe / d with adjusted funds flow from operations of $ 4.2 million Consistent with prior periods , Kakwa continued to account for 80 % of corporate production . With no new drilling at Kakwa since the spring of 2020 , production declined over the prior year . For the second quarter , daily production averaged 1,479 boe / d ( 2020 : 2,058 boe / d ) and for the six months ended June 30 , 2021 , it averaged 1,579 boe / d ( 2020 : 2,068 boe / d ) . The improvement in commodity prices over the same period last year materially improved revenue and adjusted funds flow from operations in 2021. For the quarter , petroleum and natural gas sales increased to $ 7.1 million from $ 3.4 million last year and $ 14.1 million year to date from $ 10.4 million in the prior year . The higher revenue contributed to adjusted funds flow from operations of $ 4.2 million ( 2020 : $ 0.2 million ) in the quarter and $ 7.1 million for the first six months of the year ( 2020 : $ 2.7 million ) ( ¹ ) . The higher revenue also contributed to net income of $ 2.9 million for the quarter ( 2020 : $ 2.7 million loss ) and $ 3.8 million ( 2020 : $ 117 million loss ) for the first half of the year . In the prior year , the year - to - date loss reflects the impairment expense of $ 113 million incurred in the first quarter largely because of the lower future oil prices . Capital expenditures in the quarter were $ 0.5 million ( 2020 : $ 0.5 million ) and $ 0.9 million year to date ( 2019 : $ 3.4 million ) . The Company also reported on the pending renewal of its credit facility with a Canadian chartered bank . Following a preliminary review conducted in the second quarter , the Company anticipates its $ 17 million revolving operating demand facility will be reduced to $ 16 million and its uncommitted non - conforming revolving facility of $ 3 million will be terminated . The renewal will take effect upon receipt of the final requisite approvals in the third quarter . Questerre Energy Corporation 1650 AMEC Place • 801 Sixth Avenue SW Calgary Alberta T2P 3W2 Canada Telephone : 403-777-1185 Telefax : 403-777-1578 E - mail : info@questerre.com Page 1 of 3 www.questerre.com