Questerre Energy Corporation

Questerre Energy Corporation

January 17, 2008 00:15 ET

Questerre Updates Operations

CALGARY, ALBERTA--(Marketwire - Jan. 17, 2008) - Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSLO:QEC) reported today on recent developments at its core areas.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, "We have been very successful drilling in the fourth quarter of 2007. We operated five significant wells including drilling the technically challenging Nahanni well. We hope that successful tests at Antler and Greater Sierra will be followed by the same at Vulcan and Beaver River later this month."

Beaver River Field, British Columbia

As previously reported, testing is currently underway on the A-8 well with preliminary results to be released as soon as available.

Greater Sierra, British Columbia

Drilling operations on the first well under its farm-in agreement with a senior independent were successfully completed on January 14, 2008. The well was drilled to a vertical depth of 1516 m with a 1256 m horizontal leg in the target Devonian Jean Marie formation. Based on the final test rate of 2.03 mmcf/d (338 boe/d) while drilling, the partner has commenced work to tie-in the well to the local gathering system.

The second well under this agreement spud on January 16 and should be completed prior to month-end. Subject to the final test rate while drilling on the second well, the Company expects both wells will be tied-in and placed on production prior to the end of the first quarter.

Field work on the 46 square mile 3-D seismic survey on this acreage is scheduled to begin later this month. Questerre expects this program to be completed by the end of March 2008. Upon completion of the seismic program and the drilling of both wells, Questerre will hold a 50% interest in 54 square miles in the Greater Sierra area.

Antler, Saskatchewan

Questerre participated in the drilling of two horizontal (1.5 net) wells in the Antler area of southeast Saskatchewan in December 2007. Both wells were successfully completed in the target Devonian Bakken/Torquay formation at a depth of approximately 1100m. The wells are being tied-in to the oil battery and will commence test production later this month.

Two (1.5 net) additional horizontal wells are currently underway and the Company plans to drill a third (0.5 net) well prior to end of February.

Questerre and its partners also completed the acquisition of a 26 square mile 3-D seismic survey over its core acreage in December. The survey is expected to help delineate the Bakken/Torquay formation and firm up development and exploration locations for the remainder of this year.

Vulcan, Southern Alberta

Questerre spud the first horizontal oil well to develop the Mannville I Pool in Vulcan, Southern Alberta in December 2007. The well encountered over 400m of potential reservoir in the target Mannville Sunburst formation and will be completed over the next two weeks.

Questerre and its partner have submitted a Good Production Practice plan to the Alberta Energy and Utilities Board to commence full production from the I Pool this spring.

Widewater, North Central Alberta

In the fourth quarter of 2007, Questerre drilled a 2000m vertical well in the Widewater area of north central Alberta. The well did not encounter hydrocarbons in the primary oil target but tested gas from a secondary target. Subject to the results of further testing, Questerre expects to abandon this well. Questerre has an 80% interest in this well.

St. Lawrence Lowlands, Quebec

The 2-D seismic acquisition program over two Questerre prospects was completed at the end of December. Subject to the results, the Company has budgeted to participate in two wells in the Lowlands this year.

Completion operations on the first shale gas well began in December. A slick-water fracture stimulation was completed and the well flowed natural gas to surface. The operator has kept the flow rates confidential until it has finalized its analysis of the results.

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.

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