Questerre Energy Corporation
TSX : QEC
OSLO STOCK EXCHANGE : QEC

Questerre Energy Corporation

May 15, 2006 00:15 ET

Questerre Announces First Quarter Results

CALGARY, ALBERTA--(CCNMatthews - May 14, 2006) - Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC) (OSE:QEC) announced today its financial and operating results for the first quarter of 2006.

Highlights

- Participated in the drilling of 7 (3.5 net) wells with an 86% success rate

- Established Westlock as a new core area through an agreement to acquire a private company with production and exploration acreage

- Proved commercial production from the Mattson sands at the Beaver River Field

- Commenced seismic acquisition program in the St. Lawrence Lowlands with Talisman Energy

- Tripled production and revenue with positive cash flow from operations

Michael Binnion, President and Chief Executive Officer, commented, "We made great progress on our entire portfolio. Our conventional assets in Alberta grew through our successful drilling program in Vulcan and our agreement to acquire a company with assets in Westlock. We had a breakthrough at Beaver River by establishing commercial production from the Mattson sands. Our seismic program with Talisman commenced in the Lowlands. Based on these successes, we will have a very active drilling program for the remainder of the year. Finally, we are well on our way to meet or exceed our production target for the year. Production for the quarter averaged approximately 300 boe per day and is currently over 500 boe per day."

For the three months ended March 31, 2006 Questerre reported petroleum and natural gas revenue of $1.16 million up 245% from $0.34 million in 2005. This reflects the increase in average daily production during the quarter to 292 boe per day up from 97 boe per day in 2005. Cash flow from operations in 2006 grew to $0.29 million from a loss of $0.09 million in 2005. The Company's working capital position at the end of the quarter was $10.3 milion (2005: $0.37 million).

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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