Questerre Energy Corporation

Questerre Energy Corporation

January 17, 2007 00:15 ET

Questerre Updates Operations

CALGARY, ALBERTA--(CCNMatthews - Jan. 17, 2007) - Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSE:QEC) reported today on recent developments at the Beaver River Field in British Columbia.

The operator at the Beaver River Field announced that drilling operations have been completed on the A-7 well. The primary target was successfully drilled and cased with drilling taking longer than expected due to technical challenges. Good gas shows were observed throughout the section from 1240m to the final casing point at 1781m.

Wireline logs confirm the presence of natural fractures that correspond with the influx of gas observed during the drilling operations. Drilling continued to a depth of 1930m where a deeper Mattson sand was encountered and found to be gas bearing. This sand is equivalent to the interval currently producing in the nearby A-2 well at a rate of over 4 mmcf/d (667 boe/d). Due to technical reasons, casing was not run over this interval; however, the operator plans to test this sand in a future well.

Hydraulic fracturing and well testing equipment will be mobilized over the coming weeks to evaluate the productivity of the Mattson and assess the associated reserves.

The Company also confirmed that completion and testing of Gentilly #1 in the St. Lawrence Lowlands is expected to commence by the middle of February, subject to equipment availability.

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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