QEC: Questerre reports second quarter 2026 results

Calgary, Alberta -- Questerre Energy Corporation ("Questerre" or the "Company")
reported today on its financial and operating results for the quarter ended June
30, 2026.

Michael Binnion, President and Chief Executive Officer of Questerre, commented,
"This quarter, we advanced the three core assets in our portfolio. The
successful HCCOTM test in Brazil is a major proof point for our oil shale
refining technology. In May, we demonstrated the homogeneous charge of
low-temperature oxygen in our working gas using a commercial-scale vessel. An
extended test is the next step to establish the commercial parameters required
to implement our HCCO process in the existing Petrosix refinery. We expect the
process could materially reduce internal fuel usage, which currently represents
nearly 15% of our production."

Commenting on the Company's Quebec assets, he added, "In June, our preferred
shares, representing defined economic rights linked to our Quebec assets under
either a settlement or development scenario, were listed on Euronext Growth in
Oslo under the ticker QGAS. Depending on the outcome, these rights provide
shareholders with 95% of the net proceeds from a settlement or a 50% carried
interest in the future development of our Utica discovery. Shortly after the
shares started trading, the Quebec government formally recognized the strategic
importance of natural gas. This supports our efforts to work with government and
industry toward a commercial solution for developing the discovery."

He further added, "We also completed the sale of our minority working interest
at Kakwa Central. Consideration for the assets, which were producing
approximately 650 boe per day, was $23.5 million in cash and the assumption of
associated reclamation obligations. The proceeds will primarily fund future
development at Kakwa North and the expansion of our operated assets in
Saskatchewan."

Highlights for Second Quarter of 2026

o	Successful HCCO test using a commercial-scale vessel at the PX Energy facility
o	Preferred shares listed for trading on Euronext Growth under the ticker QGAS
o	Sale of the Kakwa Central assets for $23.5 million in cash
o	Like for like average production increased to 5,700 boe per day this quarter
from 5,530 boe per day last quarter (overall production reduced from 6,180 boe
per day following the Kakwa disposition of 650 boe per day) 
o	Adjusted funds flow from operations of $18.3 million, including $6.9 million
related to changes in contract liabilities, compared to net cash from operating
activities of $9.4 million
o	Working capital deficit reduced to $19.1 million at June 30, 2026 from $49.6
million at March 31, 2026 including cash and cash equivalents of $44.2 million
at June 30 2026

Production volumes for the second quarter of 2026 and the first half of the year
increased over the comparative periods of 2025 following the acquisition of PX
Energy in the third quarter of 2025. Production volumes averaged 5,700 boe per
day (2025: 3,091 boe per day) for the quarter and 5,935 boe per day for the year
to date (2025: 2,414 boe per day) with Brazil accounting for approximately 70%
of these volumes in both periods. Production in Canada declined with the sale of
the Kakwa Central assets in the second quarter that accounted for 650 boe per
day of production. Sales volumes in the quarter were 4,632 boe per day (2025:
3,091 boe per day) with variance to production volumes due to internal fuel
consumption and customers lifting volumes below their minimum contractual
commitments.

The higher production volumes and higher oil prices contributed to higher
petroleum and natural gas revenue for both the quarter and year to date periods
ended June 30, 2026. The Company reported revenue of $50.1 million (2025: $13.7
million) for the quarter and $93.1 million (2025: $22.8 million) for the year to
date period. The Company reported net income before taxes of $20.6 million for
the quarter (2025: $0.7 million loss) and $8.1 million (2025: $0.7 million loss)
year to date including a gain of $17.5 million in the current quarter on the
sale of the Kakwa Central assets.

The Company's working capital deficit at June 30, 2026, was $19.1 million (2025:
$13.1 million surplus) compared to $49.6 million at March 31, 2026. Capital
expenditures for the first half of the year were $4.0 million (2025: $18.9
million) and related largely to Brazil compared to the prior year expenditures
on the drilling and completion of wells in Alberta.

The term "adjusted funds flow from operations" and "working capital
surplus/(deficit)" are non-IFRS measures. Please see the reconciliation
elsewhere in this press release.

Questerre is an energy technology and innovation company focused on responsibly
developing oil and gas resources. The Company holds a significant natural gas
discovery in the Quebec Utica shale, widely recognized as one of the most
important undeveloped natural gas resources in Eastern Canada. The Company
believes society can successfully transition its energy portfolio. With new
clean technologies and innovation to responsibly produce and use energy, society
can sustain both human progress and the natural environment. 

Questerre is a believer that the future success of the energy 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.

For further information, please contact:

Questerre Energy Corporation
Bjorn Inge Tonnessen, Chairman +47.902.01.289 | Email :
btonnessen-AT-questerre.com 
Hans Jacob Holden, Director +47.909.42.667
Jason D'Silva, Chief Financial Officer (403) 777-1185 | (403) 777-1578 (FAX)
|Email: [email protected]

Advisory Regarding Forward-Looking Statements This news release contains certain
statements which constitute forward-looking statements or information
("forward-looking statements") within the meaning of applicable securities laws
in Canada. Any statements about Questerre's expectations, beliefs, plans, goals,
targets, predictions, forecasts, objectives, assumptions, information and
statements about possible future events, conditions and results of operations or
performance are not historical facts and may be forward-looking. Forward-looking
information is often, but not always, made through the use of words or phrases
such as "anticipates", "aims", "strives", "seeks", "believes", "can", "could",
"may", "predicts", "potential", "should", "will", "estimates", "plans",
"mileposts", "projects", "continuing", "ongoing", "expects", "intends" and
similar words or phrases suggesting future outcomes. Forward-looking information
in this news release includes but is not limited to the Company's views on the
impacts of the HCCO test to advance its oil shale refining technology, the
potential reductions in internal fuel usage from its application at the existing
Petrosix refinery, the Company's views on working towards a business and
political solution in Quebec, and the planned use of proceeds for future
development of its assets in Western Canada.

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. Current
conditions, economic and otherwise, render assumptions, although reasonable when
made, subject to greater uncertainty. Undue reliance should not be placed on
forward-looking information as actual results may differ materially from those
expressed or implied by forward-looking information. 

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 following risk factors: additional funding requirements;
exploration, development, and production risks; volatility in the oil and gas
industry; prices, markets, and marketing of crude oil and natural gas; liquidity
and the Company's substantial capital requirements; prices, markets, and
marketing of crude oil and natural gas; political uncertainty; non-government
organizations; changing investor sentiment; global financial market volatility;
adverse economic conditions; alternatives to and changing demand for petroleum
products; environmental risks; regulatory risks; inability of management to
execute its business plan; competition from other issuers; expiration of
licenses and leases; Indigenous claims; possible failure to realize anticipated
benefits of acquisitions; and reputational risks. 

Additional information regarding some of these risks, expectations or
assumptions and other risk factors may be found in the Company's Annual
Information Form for the year ended December 31, 2025, and other documents
available on the Company's profile at www.sedarplus.ca. Readers are 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.

(1) For the three-month period ended June 30, 2026, liquids production including
light crude and natural gas liquids accounted for 4,312 bbls/d (2025: 1,690
bbls/d) and natural gas including conventional and shale gas accounted for 8,295
Mcf/d (2025: 8,409 Mcf/d). For the six-month period ended June 30, 2026, liquids
production including light crude and natural gas liquids accounted for 4,392
bbls/d (2025: 1,346 bbls/d) and natural gas including conventional and shale gas
accounted for 9,259 Mcf/d (2025: 6,412 Mcf/d).

Barrel of oil equivalent ("boe") amounts may be misleading, particularly if used
in isolation. A boe conversion ratio has been calculated using a conversion rate
of six thousand cubic feet of natural gas to one barrel of oil and the
conversion ratio of one barrel to six thousand cubic feet is based on an energy
equivalent conversion method application at the burner tip and does not
necessarily represent an economic value equivalent at the wellhead. Given that
the value ratio based on the current price of crude oil as compared to natural
gas is significantly different from the energy equivalent of 6:1, utilizing a
conversion 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 deficit" which are non-GAAP terms. Questerre uses these
measures to help evaluate its performance. 

As an indicator of Questerre's performance, adjusted funds flow from operations
should not be considered as an alternative to, or more meaningful than, cash
flows from operating activities as determined in accordance with GAAP.
Questerre's determination of adjusted funds flow from operations may not be
comparable to that reported by other companies. Questerre considers adjusted
funds flow from operations to be a key measure as it demonstrates the Company's
ability to generate the cash necessary to fund operations and support activities
related to its major assets.

												
		Three months ended June 30, 		Six months ended June 30, 
($ thousands)	    	2026		2025		2026		2025
Net cash from operating activities		$	 9,428		$	 6,288		$	 12,510		$	 9,646
Change in non-cash operating working capital			 1,909			 (1,283)			 12,896			
(1,099)
Change in contract liabilities			 6,926			 -			 13,651			 -
Adjusted Funds Flow from Operations(1)		$	 18,263		$	 5,005		$	 39,057		$	 8,547
(1) Adjusted Funds Flow from Operations is a non-GAAP measure defined as cash
flows from operating activities before changes in non-cash operating working
capital, other than changes in non-cash contract liabilities related to minimum
sales volumes, which are included in the measure.
Operations(1)		$	 18\,263		$	 5\,005		$	 39\,057		$	 8\,547\
(1) Adjusted Funds Flow from Operations is a non-GAAP measure defined as cash\
flows from operating activities before changes in non-cash operating working\
capital\, other than changes in non-cash contract liabilities related to minimum\
sales volumes\, which are included in the measure.\