Questerre Energy Corporation

Questerre Energy Corporation

June 06, 2006 00:15 ET

Questerre Announces Successful Oil Well and Commences Vulcan Oil Development

CALGARY, ALBERTA--(CCNMatthews - June 6, 2006) - Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC) (OSE:QEC) Questerre is pleased to announce that a development drilling program has commenced for the oil leg of the Mannville G Pool in Vulcan. Questerre has a 50% interest in this pool.

The drilling program follows the successful results from the 7-29 well in late May. The well was drilled to assess the productivity of the oil column associated with the gas cap of the G Pool. During clean up, the well produced 125 bbls of 40 API oil per day. Completion and tie-in operations are ongoing with the installation of a downhole pump. Construction has also commenced on a tie-in to a central battery facility. Questerre expects the well will be placed on production in early July.

Questerre also reported on the results from the 13-16 well drilled at the end of the first quarter. The 13-16 well was drilled approximately 2 miles to the south of the 16-29 discovery well. Based on log analysis, the well appears to have encountered the oil water contact for this pool and Questerre believes this likely defines the edge of the oil column to the south. The well is scheduled to be completed in early June to confirm continuity of the primary Mannville horizon as well as test a prospective uphole zone.

The results from the 7-29 well coupled with the preliminary results from the 13-16 well indicate the oil column is significantly larger than originally expected. A total of nine oil locations have been identified for primarily infill drilling during the second and third quarter of 2006. The first well in the oil development program, the 16-20 well, drilled one mile south of the discovery well was recently cased as a successful oil well. Completion operations on this well started recently.

Michael Binnion, President and Chief Executive Officer, commented, "Based on the drilling results, the oil column associated with our gas pool has exceeded our expectations. The oil is 40 API quality and receives premium pricing. More importantly, this development program allows us to benefit from current oil prices while conserving the gas for a better pricing environment. Combined with our active drilling program in Westlock, we believe we are well positioned to meet or exceed our year end production target for 2006 with a higher percentage of oil production."

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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