Questerre Energy Corporation
TSX : QEC

Questerre Energy Corporation

August 16, 2005 02:15 ET

Questerre Announces Second Quarter Results

CALGARY, ALBERTA--(CCNMatthews - Aug. 16, 2005) - Questerre Energy Corporation (TSX:QEC) ("Questerre" or the "Company") reported today on its financial and operating results for the second quarter of 2005.

The Company reported revenue of $0.52 million for the three months ended June 30, 2005 up from $0.44 million for the three months ended March 31, 2005. Cash flow from operations improved from a loss of $9,900 in the first quarter of 2005 to a gain of $91,600 for the second quarter of this year.

Production over the second quarter increased to 148 boe per day from 100 boe per day during the first quarter. The Company participated in the drilling of three wells in Alberta during the quarter. All three wells (1.4 net wells) were cased for production as gas producers and will be tied-in during the third quarter. Stabilized production from these wells will depend on facility constraints. Activity during the quarter was less than expected due to an unusually wet spring and flooding conditions in June.

Highlights for the quarter include the following:

- Testing of its discovery well in the Vulcan area of Southern Alberta and expansion of its acreage prospective for this play to 8,320 acres;

- Execution of a farm-in agreement with Ampac Petroleum Inc. for the Beaver River Field; and

- Completion of its $10 million offering in Norway and listing on the Oslo Stock Exchange.

Questerre's second quarter financial statements and Management's Discussion and Analysis are available on SEDAR at www.sedar.com, the Oslo Bors at www.newsweb.no and the Company's website at www.questerre.com.

Questerre Energy Corporation is a Calgary-based independent resource company actively engaged in the exploration for and development, production and acquisition of large-scale exploration and development 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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