Questerre Energy Corporation

Questerre Energy Corporation

June 01, 2006 00:30 ET

Questerre Announces 33-Section Farm-In with Apache in Westlock

CALGARY, ALBERTA--(CCNMatthews - June 1, 2006) - Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSE:QEC) is pleased to announce that it has entered into a farm-in agreement with Apache Canada Ltd. ("Apache") covering approximately 21,120 gross acres in Westlock, Central Alberta.

Michael Binnion, President and Chief Executive Officer, commented, "I am pleased we were able to conclude this agreement with Apache. I believe it will lead to future opportunities in our new core area of Westlock. This agreement allows us to potentially double our land position here to over 40,000 gross acres. We plan to double our drilling in this area for the balance of 2006 and continue to identify additional prospects for 2007."

Pursuant to the terms of the farm-in agreement, Questerre will fund an initial five well program to earn a majority working interest in ten sections of Apache's land. Questerre will have the option to drill additional wells to earn an interest on the same terms. Questerre will be responsible for drilling, completion and tie-in operations. Questerre will operate the production and have access to the Apache's facilities in the area. Drilling operations are expected to commence in early July 2006.

Questerre Energy Corporation is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development oil and gas projects in Canada.

This news release contains forward-looking information. Implicit in this information are assumptions regarding commodity pricing, production, royalties and expenses, that, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in the Company's plans, commodity prices, equipment availability, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee made by the Company that the actual results achieved will be the same as those forecasted herein.

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