Quest Resource Corporation Adds New Natural Gas Hedges
23 Mai 2006 - 7:16PM
PR Newswire (US)
OKLAHOMA CITY, Okla., May 23 /PRNewswire-FirstCall/ -- Quest
Resource Corporation (NASDAQ:QRCP), the largest operating company
in the Cherokee Basin, today announced the Company has added
natural gas price collars for a portion of its production in 2007
and 2008. In the table below, Quest provides details of the new
contracts. Year 2007 Annual Volume Daily Volume Floor Ceiling
2,241,100 MBtu 6,140 MMBtu $8.00 $8.63 2,541,495 MBtu 6,693 MMBtu
$8.00 $9.02 Year 2008 2,136,708 MBtu 5,854 MMBtu $8.00 $8.93
1,962,858 MBtu 5,378 MMBtu $8.00 $9.02 David Grose, Quest Resource
Chief Financial Officer said: "Specifically, these costless collars
for 2007 and 2008 will protect a larger portion of our growing
production base from fluctuations in the market price of natural
gas and will enable us to have greater certainty with respect to
our future revenues. Our forecasted production for 2007 is
approximately 28 billion cubic feet equivalent (Bcfe), of which 8.4
Bcfe, or 30% will be sold under hedging contracts. We have a
smaller percentage hedged for our targeted 2008 annual volume.
These new collars are tied to the Southern Star index, which is the
market into which we sell our production. As a result, these new
collars do not have any basis differential risk associated with
them." About Quest Resource Corporation Quest Resource is the
largest producer of natural gas in the Cherokee Basin, which is
located in southeast Kansas and northeast Oklahoma. The Company is
a fully integrated E&P company, operating more than 1,200 coal
bed methane wells which produce into its own 1,200+-mile gathering
and transportation pipeline system, and uses its own fleet of
completion equipment to support its aggressive drilling program. At
year-end 2005, Quest had more than 1,700 locations in its drilling
inventory. For more information, visit the Quest Resource's website
at http://www.qrcp.net/. Forward-Looking Statements Opinions,
forecasts, projections or statements other than statements of
historical fact, are forward-looking statements that involve risks
and uncertainties. Forward-looking statements in this announcement
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Although Quest believes
that the expectations reflected in such forward-looking statements
are reasonable, it can give no assurance that such expectations
will prove to be correct. Actual results may differ materially due
to a variety of factors, including without limitation: the
uncertainty involved in exploring for and developing new natural
gas reserves, the sale prices of natural gas and oil, labor and raw
material costs, the availability of sufficient capital resources to
carry out the Company's anticipated level of new well development
and construction of related pipelines, environmental issues,
weather conditions, competition, general market conditions, and
other risks detailed in Quest's filings with the Securities and
Exchange Commission. You can find Quest's filings with the
Securities and Exchange Commission at http://www.qrcp.net/ or at
http://www.sec.gov/. By making these forward-looking statements,
Quest undertakes no obligation to update these statements for
revisions or changes after the date of this release. DATASOURCE:
Quest Resource Corporation CONTACT: David E. Grose, Chief Financial
Officer of Quest Resource Corporation, +1-405-488-1304, ext. 23 Web
site: http://www.qrcp.net/
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