This is from within my online bank(DnBNOR), so I can't provide a link...

Preview Q4 2010 Q4 2010 Questerre BUY
No significant news expected, political developments key short-term focus

Questerre is due to release its Q4 2010 figures on 24 February.
We expect EBITDA of CAD-2.2m and net loss of CAD4.4m. The quarterly report will probably not contain any significant news regarding the development in Quebec. We reiterate our BUY
recommendation and price target of NOK25.

• Q4 figures due on 24 February. We forecast Q4 EBITDA of CAD-2.2m and net loss of CAD4.4m. Quarterly production is forecasted at 633 barrels of oil equivalent per day, which would be a marginal decline from Q3's 649. We expect higher output from the company's oil assets in Antler (Saskatchewan, Canada), pushing up oil's share of total output from 53% in Q3 to 58% in Q4.

• We do not expect any significant news related to the development in Quebec. The first important event will be the BAPE (Bureau d'audiences publiques sur l'environnement) report, expected to be ready in late February/early March. It will be handed over to the government, and it may take up to 60 days before it is made available to the public. Due to the high local interest on the issue, we would be surprised if the report is not published by the end of March. Since BAPE is a government advisory agency, the report will be important for future shale gas development in Quebec as it will provide inputs
for the new oil and gas legislation.

• We reiterate our BUY recommendation on Questerre, with a price target of NOK25. The next production tests are not scheduled to start before May/June and the political risk is clearly present, but we argue that this is already priced in. Trading at 0.3x our NAV estimate, the upside potential is significant if/when the sentiment turns as we approach the important production tests and the political uncertainty is resolved.

Estimate changes

We forecast Q4 EBITDA of CAD-2.2m and net loss of CAD4.4m. Quarterly production is forecasted at 633 barrels of oil equivalent per day, which would be a marginal decline from Q3's 649. We expect higher output from the company's oil assets in Antler (Saskatchewan, Canada), pushing up oil's share of total output from 53% in Q3 to 58% in Q4.

Our production estimate for 2010 is adjusted marginally upwards due to higher expectations from the Antler assets, and our production estimate for 2012 is reduced on slower ramp up.

Company: Questerre
Coverage by Analyst: Espen Hennie
Date: 22.02.2011