Questerre reports on Uinta Basin Railway progress
July 26 2022 - 12:15AM
Questerre Energy Corporation (“Questerre” or the “Company”)
(TSX,OSE:QEC) reported on the planned Uinta Basin Railway that will
serve the Uinta Basin in Utah including the acreage held by Red
Leaf Resources, Inc. (“Red Leaf”), its investee company. Questerre
currently holds a 40% equity interest in Red Leaf.
Michael Binnion, President & Chief Executive
Officer of Questerre, commented, “It has become less and less
common to successfully permit large infrastructure projects such as
railways. We congratulate the Seven County Infrastructure Coalition
in Utah and their partners including Rio Grande Pacific, on
securing the final permit. With plans to end on Red Leaf’s lands we
think this railway will materially enhance its value.”
The Uinta Basin railway is reported to be the
first major freight rail project built in the United States in the
last 30 years. It is expected to improve access for waxy oil
production in the basin to more lucrative markets on the US Gulf
Coast. Subject to a final investment decision, construction of the
approximately 90-mile railway could commence as early as next year
and be operational within two years. Earlier this month, the US
Forest Service approved the final right of way. More information on
the Uinta Basin railway can be found online at
https://www.uintabasinrailway.com.
The recent approval is for the Whitmore Park
route proposed by the railway that includes a proposed terminus on
a 7,000-acre parcel of land held by Red Leaf. Red Leaf acquired
this acreage earlier this year as part of a settlement for a US$50
million secured note including principal and interest. The Red Leaf
acreage is also permitted by the state of Utah for a 44,000 barrel
per day refinery that would upgrade the waxy oil to more valuable
products including feedstock for lubricants. Red Leaf is in
discussions with local stakeholders for a rail loading facility
that would move crude oil from tanker trucks to rail cars that
could also serve as the first stage of the larger refinery
project.
Questerre is an energy technology and innovation
company. It is leveraging its expertise gained through early
exposure to low permeability reservoirs to acquire significant
high-quality resources. We believe we can successfully transition
our energy portfolio. With new clean technologies and innovation to
responsibly produce and use energy, we can sustain both human
progress and our natural environment.
Questerre is a believer that the future success
of the oil and gas 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”) including the Company’s views on the
impact of the proposed Uinta Basin Railway on the value of the
lands held by Red Leaf, the timeline for the construction of the
railway and Red Leaf’s plans for a transloading facility and
possible refinery on its acreage.
Forward-looking statements are based on several
material factors, expectations or assumptions of Questerre which
have been used to develop such statements and information, but
which may prove to be incorrect. 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. Further, 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 implementation of Bill 21 by the Government
of Quebec and certain other risks detailed from time-to-time in
Questerre's public disclosure documents. Additional information
regarding some of these risks, expectations or assumptions and
other factors may be found under in the Company's Annual
Information Form for the year ended December 31, 2021, and other
documents available on the Company’s profile at www.sedar.com. The
reader is 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.
For further information, please contact:
Questerre Energy Corporation
Jason D’Silva, Chief Financial Officer
(403) 777-1185 | (403) 777-1578 (FAX) |Email: info@questerre.com
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