Questerre Energy Corporation
TSX : QEC

Questerre Energy Corporation

July 05, 2005 02:30 ET

Questerre and Stylus Commence Testing of New Pool Discovery at Vulcan

CALGARY, ALBERTA--(CCNMatthews - July 5, 2005) - Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC) and Stylus Energy Inc. ("Stylus") are pleased to announce the discovery of a new Mannville pool at 16-29-15-25W4M (the "16-29 well") in the Vulcan area of southern Alberta. Questerre and Stylus each have a 50% working interest in the 16-29 well.

An initial four-day production test of the 16-29 well was previously conducted. For the last 24 hours of the test, the 16-29 well flowed approximately 177 barrels of oil equivalent per day up 2 3/8 inch (60.3 mm) tubing, consisting of 110 barrels of 39.6 degree API oil (17.6 cubic meters) per day and 400,000 cubic feet (11,000 cubic metres) per day of sweet associated solution gas on a 1/4 inch (6.35 mm) choke.

The operator, Stylus, commenced an extended production test of the 16-29 well on July 3, 2005. The solution gas is being flared during this test and a gas pipeline is being surveyed for construction in August 2005. Production from the 16-29 well is expected to be on-stream at restricted rates prior to the completion of the gas pipeline and the receipt of "Good Production Practice" status for the pool.

Questerre and Stylus have recently acquired an additional 5,120 acres (2,048 hectares) of land pursuant to a lease continuation application to the Alberta government. This expands the joint holdings in the Vulcan area to 8,320 acres (3,328 hectares). The companies expect to commence a Mannville delineation drilling program here in August 2005.

Stylus Energy Inc. is an Alberta exploration and production company focused in southern and northeastern Alberta. Stylus common shares are listed on the Toronto Stock Exchange under the symbol "STY". Further information with respect to Stylus can be found at its website at www.stylusenergy.com.

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, 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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