SOURCE: Quest Oil Corp.

Quest Oil Corp.

February 09, 2010 08:00 ET

Quest Oil Enters Into Letter of Intent to Acquire Working Interest in Brown County, Texas

DALLAS, TX--(Marketwire - February 9, 2010) - Quest Oil Corporation (PINKSHEETS: QOIL), an independent oil and gas company that focuses on the acquisition, exploration and development of domestic and foreign crude oil and natural gas projects, announced today that it has entered into a Letter of Intent with SunDial/McDermett Operating Inc. Under the terms of the agreement and pursuant to future definitive agreements, Quest Oil will acquire a 65% working interest in a 520-acre lease located in Brown County, Texas.

Based in Graham, Texas, Sundial/McDermett and its subsidiaries are engaged in oil and gas development, field remediation and operation production management in the United States, primarily in the State of Texas. The Brown County property presently contains 16 wells all of which are expected to be brought online over the next 12 months. The reserves are set at 1.5 to 3 million barrels of oil and in excess of 100 million cubic feet of natural gas. Projected daily production is between 50 to 65 barrels of oil and 50 thousand cubic feet of gas per day.

Marvin M. Gibbons, CEO of Quest Oil Corp., stated, "Our agreement with SunDial/McDermett marks our entry into building a sustainable portfolio of gas and oil producing properties. The Brown County property is already a highly productive area and has the potential to be further exploited to increase shareholder value in the near future and long-term."

The final contract is in its 10 day due diligence period and is anticipated to be finalized soon thereafter. The negotiated total purchase price for the 65% working interest in the properties is US $650,000 to be paid over a one hundred and eighty day period following execution of the definitive agreements and as each well is brought online.

About Quest Oil Corp.

Quest Oil Corporation is a growing independent oil and gas company with a primary focus on acquiring and participating in onshore domestic and foreign crude oil and natural gas properties. The Company's philosophy is to centralize its operational strengths in M&A, capital and resource management and minimizing risks by teaming with experienced exploration and operation companies. Quest Oil is committed to maintaining a diversified portfolio of exploration projects, balancing holdings between proven and secure investments with those offering a higher risk/reward potential. For more information, please visit www.questoil.com.

Statements contained herein that are not historical facts are forward-looking statements within the meaning of the Securities Act of 1933, as amended. Those statements include statements regarding the intent, belief or current expectations of the company and its management. Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, the company's ability to obtain additional financing and the demand for the company's products. The company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in the company's expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Factors that may impact the company's success are more fully disclosed in the company's most recent public filings with the U.S. Securities and Exchange Commission.

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