Oilsands Quest Inc.
AMEX : BQI

Oilsands Quest Inc.

November 06, 2006 12:42 ET

Oilsands Quest Initiates Winter Drilling Program in Northwest Saskatchewan

CALGARY, ALBERTA--(CCNMatthews - Nov. 6, 2006) - Oilsands Quest Inc. (AMEX:BQI), formerly CanWest Petroleum Corporation, announces that drilling has commenced on its oil sands exploration permits in northwest Saskatchewan. The first of eight rigs that will be involved in the company's winter 2006/07 core drilling program arrived onsite last week and began drilling late Friday, November 3. Oilsands Quest plans to drill up to 250 core holes in the program.

"Our first target is 100 delineation holes in the area of our discovery well from last year's program, which was the first year of drilling on our permit lands," said Christopher H. Hopkins, President & Chief Executive Officer of Oilsands Quest. "As we have planned an aggressive drilling program for this winter, we have been anxious to start drilling again. We're very pleased that the ground is frozen and conditions are favorable to launch our winter program."

Over the next two to three months, activities on Oilsands Quest's permit lands will escalate as drilling equipment and camp facilities continue to arrive. The winter drilling season in northwestern Saskatchewan, typically from November to April, is dependent on cold weather. With continuing favorable conditions, the company expects the program to be fully operational by the end of January. The winter 2006/07 program is based on up to 250 holes, including 100 in the original discovery area and up to another 150 to identify resource leads over a larger area.

In Oilsands Quest's initial drilling program, conducted between December 2005 and April 2006, a total of 24 holes were drilled, 19 of which intersected bitumen-bearing McMurray formation. An independent assessment by Norwest Corporation of the results of the first drilling program determined a High Estimate of bitumen resources of 525 million barrels of Original Bitumen In Place (OBIP). The area covered in the OBIP estimate represents approximately 1.4 percent of Oilsands Quest's total permit lands.

A public company, Oilsands Quest Inc. is engaged in a variety of projects in the oil and gas industry in Western Canada with an emphasis on oil sands and oil shale exploration. It is conducting the province of Saskatchewan's first major oil sands exploration program.

Forward-Looking Information

Except for statements of historical fact relating to the companies, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements such as the estimate of OBIP, the references to Oilsands Quest Inc.'s anticipated exploration programs and drilling programs and capital expenditures relating to, and timing of, such programs are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, which include but are not limited to risks inherent in the oil sands industry, regulatory and economic risks, and risks associated with the company's ability to implement its business plan. There are uncertainties inherent in forward-looking information, including factors beyond Oilsands Quest Inc.'s control, and no assurance can be given that the programs will be completed on time, on budget or at all. In addition, there are numerous uncertainties inherent in estimating OBIP, including many factors beyond the companies' control, and no assurance can be given that the indicated level of OBIP or the recovery thereof will be realized. In general, estimates of OBIP are based upon a number of factors and assumptions made as of the date on which the resource estimates were determined, such as geological and engineering estimates which have inherent uncertainties. The OBIP estimate for the lands described in this news release may not reflect the same confidence level as estimates of OBIP for Oilsands Quest Inc.'s total permit lands, due to the effects of aggregation. Oilsands Quest Inc. undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements.

Cautionary Note

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors affecting the companies' operations, markets, products and prices, and including other factors discussed in Oilsands Quest Inc.'s various filings with the Securities and Exchange Commission.

CUSIP# 678046 10 3


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