Aquest Energy Ltd.

Aquest Energy Ltd.

March 10, 2005 16:26 ET

Aquest Updates Production and Drilling Program


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: AQUEST ENERGY LTD.

TSX SYMBOL: AEX

MARCH 10, 2005 - 16:26 ET

Aquest Updates Production and Drilling Program

CALGARY, ALBERTA--(CCNMatthews - March 10, 2005) - Aquest Energy Ltd.
(TSX:AEX) ("Aquest" or the "Company") today announced the results of its
winter drilling program at the Clarke Lake gas pool in the Fort Nelson
area of British Columbia. The original program envisaged the drilling of
a development well in the pool at B-8-C and the re-work of the
previously producing bA-89-K well. Delays in obtaining drilling
equipment and services, compounded by drilling problems and weather,
have slowed our progress over this winter drilling season. The B-8-C
well was drilled with operations suspended today. The wellbore did not
encounter the reef at a structural position, nor with sufficient
porosity, necessary to provide commercial gas production.

In addition, as a result of the weather conditions and access road
restrictions, Aquest has elected to suspend operations which include the
re-entry at B-89-k and the proposed new exploratory drilling on the
Muskwa structure to the west. This decision was made due to a
combination of cost, continuing access uncertainty, and in light of the
drilling result from B-8-C. It remains Aquest's intent to develop the
Clarke Lake potential through additional drilling at both B-A-89k and
B-8-C next winter season. In addition, the Muskwa prospect will also be
subject to further drilling during the same period.

Aquest anticipates releasing the reserve report by March 18, 2005 and
reporting our year end financials by March 25th. The Company continues
to produce at an approximate rate of 2100 - 2200 boepd (8,600 mcfpd and
700 blpd) and is currently in the process of drilling potential gas
wells at Sylvan Lake and Cardiff in central Alberta. On a preliminary
basis, Aquest is forecasting a base budget of 2250 boepd before
exploration success with an anticipated capital program of $15 - 20
million. This base production level results in a cash flow guidance of
$17-18 million or $0.55 - 0.60 per share.

Aquest is a Calgary, Alberta based company engaged in the exploration,
development and production of oil and natural gas. The Corporation's
common shares are listed on the TSX under the trading symbol "AEX".

Forward-Looking Statements

This press release may include forward-looking statements including
opinions, assumptions, estimates and expectations of future production,
cash flow and earnings. When used in this document, the words
"anticipate," "believe," "estimate," "expect," "intent," "may,"
"project," "plan", "should" and similar expressions are intended to be
among the statements that identify forward-looking statements.
Forward-looking statements are subject to a wide range of risks and
uncertainties, and although the Company believes that the expectations
represented by such forward-looking statements are reasonable, there can
be no assurance that such expectations will be realized. Any number of
important factors could cause actual results to differ materially from
those in the forward-looking statements including, but not limited to,
the volatility of oil and gas prices, the ability to implement corporate
strategies, the state of domestic capital markets, the ability to obtain
financing, changes in oil and gas acquisition and drilling programs,
operating risks, production rates, reserve estimates, changes in general
economic conditions and other factors more fully described from time to
time in the reports and filings made by Aquest with securities
regulatory authorities.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Aquest Energy Ltd.
    Daryl H. Connolly
    President & CEO
    (403) 444-0251
    Email: dconnolly@aquestenergy.com
    or
    Aquest Energy Ltd.
    Brian A. Baker
    VP Finance & CFO
    (403) 444-0251
    (403) 444-0999 (FAX)
    Email: bbaker@aquestenergy.com
    Website: www.aquestenergy.com
    The TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this Press Release.