Questerre Energy Corporation

Questerre Energy Corporation

October 05, 2007 00:15 ET

Questerre Updates Beaver River Operations

CALGARY, ALBERTA--(Marketwire - Oct. 5, 2007) - Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSLO:QEC) and Transeuro Energy Corp. (TSX VENTURE:TSU) ("Transeuro") reported today on developments at the Beaver River Field in British Columbia.

The tie-in of the A-7 well to the field gathering system was recently completed and the well was placed on production. Completed this winter in the shallow Mattson horizon, initial test rates were approximately 2.0 mmcf/d (332 boe/d). Current stabilized production from this well is approximately 1.0 mmcf/d (166 boe/d).

The Companies also updated drilling operations on the A-8 well. A-8 will primarily target a structurally high, undrilled Nahanni fault block identified on the reprocessed 3-D seismic survey. It will also evaluate three other prospective horizons including the Mattson, Mississippian carbonate and Devonian shales.

The A-8 well has encountered three major faults and extensive fracturing in the first 1600m of drilling. The well is targeting these fault systems that are anticipated to contribute to the formation of better reservoir. The 9 5/8 inch intermediate casing has now been set at a depth of 1625m and drilling has resumed.

The Beaver River area has experienced an exceptionally rainy summer and a recent early snowfall of over 20 inches. This has created very difficult operating conditions on the lease and the unpaved roads. In spite of these challenges, both the A-7 tie-in and A-8 drilling projects are on track with a minimum of lost days.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, "The early results from the A-8 well support our geological interpretation of a highly faulted and fractured area which is encouraging. The A-7 well has proved sufficient production from the upper Mattson intervals to support further economic development of the Mattson. I congratulate our drilling and operations teams on an extraordinary effort to overcome difficult conditions on these two projects."

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.

Barrel of oil equivalent ("boe") amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel and is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead.

Contact Information