24-Hour Emergency Phone Number: 1-866-920-0396

Operations

Diversified assets. Solid cash flow. Oil-focused operations.

Operating Strategy

Questfire’s operating strategy is to achieve growth in reserves and production by pursuing conventional oil prospects across its diversified asset base that offer high rewards with relatively low technical risks and capital requirements. Questfire’s operating strategy works in support of the Corporation’s business growth strategy and achievement of its vision.

Questfire’s operating strategy is comprised of the following elements and principles:

  • Acquire conventional producing oil and natural gas assets with long reserve-life-index and low operating costs;
  • Focus drilling and well recompletions across the current asset base on oil-weighted targets during a period of high crude oil and NGL prices and asset valuations;
  • Focus further acquisitions on gas-weighted assets during a period of low natural gas prices and asset valuations;
  • Acquire land through Crown sales and farm-ins on internally-generated exploration and development prospects;
  • Achieve high working interests;
  • Operate drilling and production;
  • Employ 3D seismic where applicable, target operating areas with year-round access, and control all phases of full-cycle exploration, from prospect generation through development;
  • Focus on shallow to medium-depth targets to manage technical risks and limit capital costs;
  • Drill targets that are prospective for multiple zones from a single well wherever possible;
  • Lever the Corporation’s highly experienced management team with its track record of technical and operating success, by focusing on play types and areas the team is familiar with; and
  • When exploring, focus initially on vertical drilling to limit capital costs per well, followed by horizontal development drilling where warranted.

Questfire’s focus on conventional targets rests on the premise that the industry’s collective shift to unconventional “resource plays” has left overlooked conventional opportunities, and has also lowered pricing of mineral leases on conventional prospects. This reduced competition for conventional prospects and assets for sale has opened opportunity to create value at relatively low risk and capital intensity.

The low annual production decline of Questfire’s current asset base, estimated at approximately 12 percent per year, and the underworked nature of the recent acquired assets, both lend themselves to adding oil volumes and growing overall production through the drillbit.

Quick Links