QEC: Questerre reports first quarter 2026 results

Calgary, Alberta -- Questerre Energy Corporation ("Questerre" or the "Company")
reported today on its financial and operating results for the quarter ended
March 31, 2026.

Michael Binnion, President and Chief Executive Officer of Questerre, commented,
"The turnaround at PX Energy is producing results. In our first full quarter
with management control, lifting costs in Brazil were reduced by $7.6 million or
over 30% to $17.5 million from $25.5 million last quarter. With stronger oil
prices in March, this contributed to Questerre generating adjusted funds flow
from operations of $20.8 million - including $6.7 million in revenue related to
minimum sales contracts in Brazil - compared to $4.3 million in the fourth
quarter of 2025. Further cost reductions are planned for the remainder of the
year, and we believe the underlying operation has room to improve."

He added, "In Quebec, the economy and energy situation is evolving. The trade
dispute with the United States, a structural electricity shortage, and rising
concern about energy security have together rekindled consideration of energy
options including local natural gas production. We have been making the case
that our Quebec Utica discovery is part of the answer. On the emissions
reduction front, we met with the Government on Bill 17, their framework for
carbon storage, and on our pending carbon storage pilot application. These steps
toward meeting Quebec's decarbonization commitments demonstrate our commitment
to finding a business and political solution. Our capital reorganization closed
in January, transferring the value of our Quebec assets to preferred
shareholders. We are actively evaluating paths to list those shares for
trading."

Highlights 
o	Average daily production of 6,180 boe per day 
o	Additional 540 boe per day was invoiced as deferred revenue related to minimum
sales contracts in Brazil
o	Adjusted funds flow from operations of $20.8 million including $6.7 million
related to minimum sales contracts (net cash from operating activities of $3.1
million) 
o	Cost cutting at PX Energy reduces lifting costs by $7.6 million to $17.5
million from $25.5 million in the fourth quarter of 2025
o	Corporate reorganization conveys interest in Quebec assets to preferred shares
o	Questerre case approved by Quebec Superior Court to advance legal process

Following the acquisition completed in September 2025, production volumes
averaged 6,180 boe per day in the quarter (2025: 1,729 boe per day). An
additional 540 boe per day was invoiced as deferred revenue related to minimum
sales contracts. Volumes in Brazil were about 10% lower than last quarter due to
reduced production to meet seasonally lower demand. For the quarter, petroleum
and natural gas revenue remained unchanged from the prior quarter at $43 million
with higher realized prices offsetting the impact of lower production volumes.
Revenue in the period does not include any amounts related to deferred revenue
for the minimum sales contracts. The Company reported a net loss of $17.8
million for the period compared to no income for the same period last year.
Despite lower operating expenses in Brazil, expenses increased due to several
non-cash expenses including $10 million related to the embedded derivative
associated with the secured bonds.

Adjusted funds flow from operations of $20.8 million, including $6.7 million of
revenue related to minimum sales contracts, compared to $4.3 million in the
fourth quarter of 2025 and $3.4 million for the same period last year.

The Company incurred capital expenditures of $1.8 million (2025: $17.9 million)
and reported a working capital deficit of $49.6 million at of March 31, 2026
compared to $52 million at December 31, 2025.

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
Jason D'Silva, Chief Financial Officer
(403) 777-1185 | (403) 777-1578 (FAX) |Email: info@questerre.com

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 impact of cost cutting
initiatives in Brazil, the potential for further improvements, the Company's
views on the energy situation in Quebec and its plans for a listing of the
Company's preferred shares. 

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.

For the three-month period ended March 31, 2026, liquids production including
light crude and natural gas liquids accounted for 4,474 bbl/d (2025: 998 bbl/d)
and natural gas including conventional and shale gas accounted for 10,234 Mcf/d
(2025: 4,388 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 March 31,

 ($ thousands)	    	                                          2026	    	        
 2025
Net cash from operating activities		       $	 3,089		$	 3,359
Change in non-cash operating working capital (excluding contract liabilities)(2)
			                                                     17,712			   184         
                            
Adjusted Fund Flow from Operations(1)		       $	20,801		$	 3,543
(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 and changes in non-cash contract liabilities.
(2) Changes in non-cash working capital excludes the $6.7 million increase in
contract liabilities related to minimum sales volumes. Including this item
reconciles adjusted working capital to the change in total working capital.
erating working\
capital and changes in non-cash contract liabilities.\
(2) Changes in non-cash working capital excludes the $6.7 million increase in\
contract liabilities related to minimum sales volumes. Including this item\
reconciles adjusted working capital to the change in total working capital.\