12:04 PM EDT, 10/03/2024 (MT Newswires) -- Questerre Energy ( QTEYF ) shares were last seen up 36% after the company on Thursday offered an update on exploration at its Kakwa North field in Alberta and said it is advancing a legal challenge for compensation after Quebec banned oil and gas production in the province in 2022.

The junior oil and gas company plans to participate in three (1.5 net) wells proposed by the operator at an estimated cost of $21 million net to Questerre. The wells are scheduled to spud early in the fourth quarter. Completion operations are planned for the first quarter of next year. Questerre holds a 50% interest in these wells.

Questerre also reported that the three (0.75 net) new wells on its Kakwa Central acreage were tied in earlier last month. Gross production from these wells over the last month is 2,755 barrels of oil equivalent per day, consisting of 6.8-million cubic feet per day of natural gas and 1,625 barrels per day of condensate and natural gas liquids. The company holds a 25% interest in these wells.

The company has filed an independent expert report with the Quebec Superior Court that quantifies the economic losses (potentially ranging between $700 million to $4.8 billion) it may incur should its licenses to explore for oil and gas be successfully revoked by the provincial government.

"Questerre notes that there is no guarantee that it will be successful in respect of its legal action against the Attorney General of Quebec, the Minister of Economy, Innovation and Energy and the GoQ which is currently before the Court or that, even if successful, there is no guarantee as to the amount of damages that Questerre may recover, if any," the company said.

Questerre was last seen up $0.10, to $0.38 on the Toronto Stock Exchange.

Price: 0.38, Change: +0.10, Percent Change: +35.71