Oslo-listed Canadian explorer, Questerre Energy Corp. and partner Gastem Inc. plans to spud a new well in their Yamaska licenses on the St. Lawrency River’s lowlands in eastern Quebec.

The St. Francois-du-Lac No. 1 well will go in later this month and Calgary-based Questerre “will hold a 7.5 percent gross overriding royalty convertible into a 20 percent working interest”.

The well is the first of two targeting Utica shales 1,800 metres deep. It will also evaluate the deeper Trenton Black-River for conventional reservoir and gas storage potential.

Gastem, meanwhile, has entered into a farm-in deal with an undisclosed American oil company for the same acreage.. The new partner can evaluate these well and commit up to $10 million for exploration work to earn a 60 percent working interest.

The Trenton- Black River play south of the St. Lawrence River mimics the geolography of the Appalachian Basin, due south, in the old U.S. oil provinces.

“Extensive geotechnical work” identified several drillable prospects of up to 346 billion cubic feet and "numerous" leads.

“The large potential reserves are complemented by attractive fiscal terms that include royalty rates of 12.5 percent and higher realized natural gas prices,” a statement said..

ws@oilgas24.com