Questerre Energy Corporation

Questerre Energy Corporation

January 21, 2008 00:15 ET

Questerre Energy Corporation: A-8 Preliminary Test Results

CALGARY, ALBERTA--(Marketwire - Jan. 21, 2008) - Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC) (OSLO:QEC) and Transeuro Energy Corp. ("Transeuro") reported today on the preliminary test results from the A-8 well at the Beaver River Field.

Three prospective intervals in the Nahanni formation identified on drilling logs were perforated earlier this month. Pre-stimulation there was a continuous dry gas flow to surface. The well was subsequently stimulated late Thursday evening with a 51 m3 acid squeeze. Late Friday, during an 8-hour initial cleanup, the well flowed back the spent acid and cleaned up to rates in excess of 5 mmcf/d (830 boe/d) on a final choke size of 38/64'' and a flowing tubing pressure of over 8000 kPa. During the flow period, 80 m3 of fluid was recovered which is in excess of the stimulation fluid used. This excess is likely formation water.

Separate pressure recorders were run with the bottom set of perforations isolated from the upper two sets of perforations. The well is currently shut-in to gather an initial reservoir pressure and pressure gradient between the perforation intervals. A production test with a full flow and buildup is planned to begin as soon as the drilling rig can be moved off the location. Subject to final results, Questerre and Transeuro have commenced plans to tie-in the well to the local gathering system.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, "A-8 was drilled to prove the concept of both partial and complete sealing of compartments in the Nahanni. With substantial free gas rates, it is clear that partial sealing exists for the A-8 compartment that is supportive of our reservoir model. However, the initial flow rate, pressure and apparent presence of formation water suggest there is not full sealing for this compartment which indicates a different sealing mechanism than originally predicted. The initial gas flow rates are less than we had hoped for. Without data from the pressure recorders and a full production test, we cannot determine the impact of the acid squeeze on the flow rates of gas and water. We expect the final production test to assist in determining what work can be done to isolate the perforation intervals and/or improve on the acid stimulation. We estimate the gathering and analysis of this data to take a few weeks."

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.

Transeuro Energy Corp. is involved in the acquisition of petroleum and natural gas rights, the exploration for, and development and production of crude oil, condensate and natural gas. The Company's properties are located in Canada, Armenia Ukraine and in Papua New Guinea through majority ownership in Eaglewood Energy Inc.

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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