Oilsands Quest Inc.
AMEX : BQI

Oilsands Quest Inc.

December 18, 2006 08:30 ET

Oilsands Quest Reports Status of Drilling Operations

CALGARY, ALBERTA--(CCNMatthews - Dec. 18, 2006) - Oilsands Quest Inc. (AMEX:BQI), formerly CanWest Petroleum Corporation, reports three core drilling rigs are drilling on its oil sands exploration permits in northwest Saskatchewan at the present time. On or about December 21, 2006, drilling operations will be shut down for the Christmas period and are scheduled to resume approximately January 4, 2007. Construction crews and camp support personnel will continue to work onsite as delivery of major components of the company's new main camp, a 100-person facility, will commence during the Christmas to New Year period.

At the present time, the work force is averaging 60 people on site, including drilling crews, construction and maintenance crews and camp personnel. The company expects two more drilling rigs to arrive on site and commence drilling during the first three weeks of January as increased accommodations become available. Drilling operations will continue to accelerate as camp facilities and drilling equipment are deployed.

"We have accomplished so much this fall in preparation for the winter drilling program," said Christopher H. Hopkins, President & Chief Executive Officer of Oilsands Quest Inc. "We have been establishing the infrastructure to support increased exploration activities, improving roads, constructing new trails and clearing the site for our new camp. We have installed a major shop facility and have everything from generators, fuel, water and sewage treatment facilities ready for the arrival of the main camp. And, most important, we are making good progress toward our goal to drill 100 delineation holes in the area of our discovery hole."

"We are successfully meeting the challenges of conducting a large, aggressive exploration program in a remote area and are looking forward to mounting expanded operations in January," Mr. Hopkins said, explaining, "Because of the remoteness of our location, we need to be self-sufficient. Therefore, our site is much like a little community in the wilderness."

The next update of Oilsands Quest's operations activities is planned for mid-January, when the company expects to report the number of drilling rigs on site, the number of holes drilled and an indication of drilling success. At that time, the company will not have sufficient information to discuss specific results of this winter's drilling such as estimates of potential bitumen resources.

Drilling operations began on November 3 on Oilsands Quest's exploration permits. For winter 2006/07, Oilsands Quest has planned a drilling program of up to 100 delineation holes in the discovery area and up to another 150 holes to identify resource leads over a larger area. The winter drilling season is generally from November to April and is dependent on cold weather.

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 and recently began its second season of core hole drilling on its oil sands permits, which are located in northwest Saskatchewan, directly across the border from the Athabasca oil sands in Alberta. Oilsands Quest is focused on proving the extension of commercially viable deposits of oil sands into Saskatchewan.

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 references to Oilsands Quest Inc.'s anticipated drilling program 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. 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 company's 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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