Questerre Energy Corporation

Questerre Energy Corporation

February 27, 2007 12:00 ET

Questerre and Gastem Finalize Letter of Intent for Yamaska Permits

CALGARY, ALBERTA--(CCNMatthews - Feb. 27, 2007) - Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC) (OSLO:QEC) and Gastem Inc. ("Gastem") (TSX-V: GMR) are pleased to announce they have entered into a letter of intent for their jointly held permits in the Yamaska area of the St. Lawrence Lowlands, Quebec.

Pursuant to the letter of intent, Gastem will commit to spend a minimum of $3 million and a maximum of $13 million on the Yamaska permits. Gastem will earn the 50% working interest currently held by Questerre in these permits subject to a 7.5% convertible gross overriding royalty ("GORR") payable to Questerre. The GORR is convertible into a 20% working interest. Gastem may work with additional partners to fulfill its spending commitments under the letter of intent. With respect to this, Gastem has announced a letter of agreement with a major US independent.

Under the minimum work program, Gastem estimates that it will drill at least two wells to test the Utica shales on the Yamaska permits. Gastem expects to spud the first well this spring.

Questerre and Gastem have outlined an area of mutual interest ("AMI") within the St. Lawrence Lowlands. Each party will offer 20% of any new projects in the AMI to the other party. Gastem will also hold a right of first refusal on existing acreage held by Questerre in the St. Lawrence Lowlands. Questerre and Gastem are currently finalizing the definitive agreements with respect to the letter of intent.

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.

Gastem Inc. is a Montreal-based independent resource company actively engaged in the exploration, development and acquisition of exploration and development 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.

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