Questerre reports first quarter 2024 results

Calgary, Alberta — Questerre Energy Corporation ("Questerre" or the"Company")(TSX,OSE:QEC) reported today on its financial and operating results for thequarter ended March 31, 2024.

Michael Binnion, President and Chief Executive Officer of Questerre,commented,"During the quarter, we applied for a pilot project under Bill 21 in Quebec.Inaddition to a comprehensive test of the carbon storage potential on our lands,we propose to pilot zero-emissions hydrogen production. Following theGovernment's recent investment in the carbon capture and storage space, we areoptimistic this could be an integral part of their strategy to meetingemissionsreduction targets.

On the legal front, a pre-trial ruling on our legal claim suspended keyprovisions of Bill 21 pending a hearing on the merits of our case. TheGovernment has since been granted leave to appeal the ruling."

He added, "Carbon capture and storage is also important to our plans to buildassets outside Quebec. We are exploring opportunities to developzero-emissionsprojects using carbon storage with First Nations in Alberta."

Highlightso Quebec Superior Court grants stay on key provisions of Bill 21 andGovernmentgranted leave to appealo Questerre applies for carbon storage and zero-emissions hydrogen pilotinQuebec o Average daily production of 1,664 boe per day with adjusted funds flowfromoperations of $3 million

Reflecting natural declines, production volumes decreased nominally in thefirstquarter of 2024 to 1,664 boe/d from 1,790 boe/d last year. Production volumesare expected to continue their natural decline until the three (0.75 net)wellsdrilled this year at Kakwa are completed and tied-in later this year. For thequarter, petroleum and natural gas revenue reflected lower production volumesand realized commodity prices and totaled $9.0 million in the period comparedto$10.5 million last year. The Company generated a net loss of $0.2 million forthe quarter (2023: $0.9 million net income) and adjusted funds flow fromoperations of $3.0 million compared to 4.3 million last year.

The Company incurred capital expenditures of $2.6 million for the period(2023:$3.2 million) and reported a working capital surplus of $30.2 million as ofMarch 31, 2024 (2023: $25.1 million).

The term "adjusted funds flow from operations" and "working capital surplus"arenon-IFRS measures. Please see the reconciliation elsewhere in this pressrelease.

Questerre is an energy technology and innovation company. It is leveraging itsexpertise gained through early exposure to low permeability reservoirs toacquire significant high-quality resources. We believe we can successfullytransition our energy portfolio. With new clean technologies and innovation toresponsibly produce and use energy, we can sustain both human progress and ournatural environment.

Questerre is a believer that the future success of the oil and gas industrydepends on a balance of economics, environment, and society. We are committedtobeing transparent and are respectful that the public must be part of makingtheimportant choices for our energy future.

For further information, please contact:

Questerre Energy CorporationJason D'Silva, Chief Financial Officer(403) 777-1185 | (403) 777-1578 (FAX) |Email: info@questerre.com

Advisory Regarding Forward-Looking Statements

This news release contains certain statements which constitute forward-lookingstatements or information ("forward-looking statements") including theCompany'sviews on the inclusion of carbon capture and sequestration as an integral partof the Government of Quebec's plans to meet emission reduction targets and itsexpectation on the timing of production increases from new wells drilled atKakwa.

Forward-looking statements are based on several material factors,expectations,or assumptions of Questerre which have been used to develop such statementsandinformation, but which may prove to be incorrect. Although Questerre believesthat the expectations reflected in these forward-looking statements arereasonable, undue reliance should not be placed on them because Questerre cangive no assurance that they will prove to be correct. Since forward-lookingstatements address future events and conditions, by their very nature theyinvolve inherent risks and uncertainties. Further, events or circumstances maycause actual results to differ materially from those predicted as a result ofnumerous known and unknown risks, uncertainties, and other factors, many ofwhich are beyond the control of the Company, including, without limitation:theimplementation of Bill 21 by the Government of Quebec and certain other risksdetailed from time-to-time in Questerre's public disclosure documents.Additional information regarding some of these risks, expectations orassumptions and other factors may be found under in the Company's AnnualInformation Form for the year ended December 31, 2023, and other documentsavailable on the Company's profile at www.sedar.com. The reader is cautionednotto place undue reliance on these forward-looking statements. Theforward-lookingstatements contained in this news release are made as of the date hereof andQuesterre undertakes no obligations to update publicly or revise anyforward-looking statements, whether as a result of new information, futureevents or otherwise, unless so required by applicable securities laws.

Certain information set out herein may be considered as "financial outlook"within the meaning of applicable securities laws. The purpose of thisfinancialoutlook is to provide readers with disclosure regarding Questerre's reasonableexpectations as to the anticipated results of its proposed business activitiesfor the periods indicated. Readers are cautioned that the financial outlookmaynot be appropriate for other purposes.

(1) For the three-month period ended March 31, 2024, liquids productionincluding light crude and natural gas liquids accounted for 978 bbl/d (2023:1,022 bbl/d) and natural gas including conventional and shale gas accountedfor4,114 Mcf/d (2023: 4,607 Mcf/d).

Barrel of oil equivalent ("boe") amounts may be misleading, particularly ifusedin isolation. A boe conversion ratio has been calculated using a conversionrateof six thousand cubic feet of natural gas to one barrel of oil and theconversion ratio of one barrel to six thousand cubic feet is based on anenergyequivalent conversion method application at the burner tip and does notnecessarily represent an economic value equivalent at the wellhead. Given thatthe value ratio based on the current price of crude oil as compared to naturalgas is significantly different from the energy equivalent of 6:1, utilizing aconversion on a 6:1 basis may be misleading as an indication of value.

This press release contains the terms "adjusted funds flow from operations"and"working capital surplus" which are non-GAAP terms. Questerre uses thesemeasures to help evaluate its performance.

As an indicator of Questerre's performance, adjusted funds flow fromoperationsshould not be considered as an alternative to, or more meaningful than, cashflows from operating activities as determined in accordance with GAAP.Questerre's determination of adjusted funds flow from operations may not becomparable to that reported by other companies. Questerre considers adjustedfunds flow from operations to be a key measure as it demonstrates theCompany'sability to generate the cash necessary to fund operations and supportactivitiesrelated to its major assets.

Three Months Ended March 31,($ thousands) 2024 2023Net cash used in operating activities $ 2,628 $ 4,648Change in non-cash operating working capital 345 (371)Adjusted Funds Flow from Operations $ 2,973 $ 4,277

Working capital surplus is a non-GAAP measure calculated as current assetslesscurrent liabilities excluding risk management contracts and lease liabilities.

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