Questerre Energy Corporation
TSX : QEC
OSLO STOCK EXCHANGE : QEC

Questerre Energy Corporation

August 14, 2007 00:15 ET

August 14, 2007-Questerre Announces Second Quarter Results

CALGARY, ALBERTA--(Marketwire - Aug. 14, 2007) - Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSLO:QEC) is pleased to announce its financial and operating results for the second quarter of 2007.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, "In the second quarter of 2007 we achieved our best financial results to date. Our primary focus was the planning for the A-8 Nahanni well which will be the biggest operation in our Company's history. The Nahanni project is second only to Quebec in upside potential to Questerre. Our positive financial results, strong balance sheet and experience in Northern Canada well position us to be successful in the A-8 Nahanni operations."

Highlights

- Quarterly cash flow from operations increased to $3.18 million from $1.08 million in 2006

- Daily production for the quarter increased 127% to 1,443 boe/d from 635 boe/d in 2006

- $10 million received from Transeuro to complete its earn-in obligations at the Beaver River Field

- Talisman commits to follow-on exploration in the St. Lawrence Lowlands

- Two promising wells drilled to test shale gas play on the Yamaska permits in the Lowlands

Questerre reported net earnings of $0.98 million for the second quarter of 2007 (2006: $2.84 million) and $1.77 million for the first half of 2007 (2006: 2.24 million). The net income in 2007 primarily represents the gain on the payment received from Transeuro to complete its earn-in obligations on the Field. In 2006, the net earnings represent a future tax recovery to offset the deferred tax liability associated with a flow-through share issuance completed in the year.

Cash flow from operations for the quarter ended June 30, 2007 grew to $3.18 million from $1.08 million in the second quarter of 2006 and $3.05 million in the first quarter of 2007. Year to date, the Company generated $6.23 million in cash flow as compared to $1.33 million in 2006. The Company's working capital position at the end of the quarter was $29.91 million (2006: $13.09 million).

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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