Questerre to acquire Brazilian shale oil firm for 65 million shares

Published 29/07/2025, 05:10
Questerre to acquire Brazilian shale oil firm for 65 million shares

CALGARY - Questerre Energy Corporation (TSX,OSE:QEC), currently trading at $0.22 with a market capitalization of $93.59 million, announced Tuesday it has entered into a definitive agreement to acquire Parana Xisto SA (PX Energy), a privately held Brazilian shale oil production and refining company, through acquisition of its parent companies. The company’s stock has shown strong momentum, delivering a 33.33% return year-to-date. According to InvestingPro analysis, Questerre appears to be overvalued at current levels.

The deal involves issuing 65 million common shares of Questerre, with 15 million shares to be issued upon closing and the remaining 50 million shares to be released in two tranches based on performance milestones. While the company holds more cash than debt on its balance sheet, InvestingPro data indicates it has been quickly burning through cash reserves.

PX Energy currently produces approximately 4,500 barrels of oil equivalent per day, with plans to increase production to 6,000 barrels per day by August 31, 2026.

"This acquisition is a rare opportunity for us to gain the expertise and capacity to advance our multi-billion barrel oil shale resource in Jordan," said Michael Binnion, President and CEO of Questerre, in a press release statement.

As part of the transaction, Questerre plans to transfer its Quebec-based assets into a separate subsidiary company, with existing shareholders maintaining their position in these assets through either preferred shares of Questerre or of the new entity.

The acquisition is subject to several conditions, including satisfactory due diligence, board approval, regulatory approvals from the Toronto Stock Exchange and Oslo Stock Exchange, and third-party approvals including waivers from bondholders and convertible noteholders.

Questerre has retained Clarksons Securities AS to advise on PX Energy’s existing debt, which includes US$80 million in senior secured bonds and US$8 million in convertible promissory notes. The company maintains a current ratio of 1.41, indicating adequate liquidity to meet short-term obligations. Unlock more detailed financial insights and 8 additional key ProTips with InvestingPro.

PX Energy has operated for over thirty years using technology developed by Petrobras, with integrated mining and refinery operations in Brazil.

The transaction is expected to strengthen Questerre’s position in oil shale development and complement its existing investments in environmentally responsible hydrocarbon technologies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.