Government of Quebec approves carbon storage pilot application

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CALGARY, Alberta, Aug. 20, 2026 (GLOBE NEWSWIRE) -- Questerre Energy Corporation (“Questerre” or the “Company”) (OSE: QGAS) reported today that the Ministry of Economy, Innovation and Energy of Quebec (“MEIE”) has approved the Company’s application for a pilot project for carbon storage in the province of Quebec. The approval was published in the Official Gazette of Quebec on August 19, 2026.

Leveraging the Company’s extensive geotechnical expertise, including proprietary seismic data, the proposed pilot will evaluate subsurface formations for long term carbon dioxide storage potential. It provides for among other things, the drilling of injection and observation wells and includes the use of one of Questerre’s existing wells. The pilot project application has been authorized for a term of five years and may be extended by two additional years.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, “The approval of our pilot application is the first step towards demonstrating Quebec’s carbon storage potential. We are optimistic that the combination of carbon storage to reduce emissions and local gas provides a made in Quebec solution to its goals of reducing greenhouse gas emissions and strengthening its energy security.”

He added, “Much like natural gas, the Government of Quebec’s Integrated Energy Resource Management Plan released last month notes that long term carbon storage is a strategic imperative to decarbonize hard to abate sectors and achieve the province’s emission reduction targets. Our pilot is situated less than ten kilometres away from the Becancour industrial park and proximate to other large emitters in the province.”

He further added, “Our next steps are to work with the provincial and federal Government on funding this pilot project. We are also working with the Government of Quebec on validating our pre-existing rights to explore for carbon storage that we held prior to the enactment of Bill 21.” Bill 21, An Act mainly to end petroleum exploration and production and the public financing of those activities, was enacted in April 2022.

The Company also reported it has received a notice from MEIE regarding the contested regulatory requirements under Bill 21 to decommission its twelve suspended wells in the province within 36 months of July 30, 2026. Under Bill 17, An Act to amend the Act respecting natural gas storage and natural gas and oil pipelines in order to authorize the implementation of a pilot project relating to the exploration for underground reservoirs or certain fluids, or their operation or exploitation, these existing wells can be utilized in carbon storage pilots. The Company will be reviewing with the Government of Quebec the issue of decommissioning wells in the context of the pilot and other relevant issues. The Company further notes that under Bill 21, the Government will fund up to 75% of qualified expenditures.

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.

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 pilot demonstrating the province’s carbon storage potential, providing a solution to their emissions reduction goals, its plans to work with the provincial and Federal government on funding and its discussions with the Government of Quebec on its decommissioning obligations and its pre-existing rights to explore for carbon storage.

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.