Questerre Energy Corporation
TSX : QEC
OSLO STOCK EXCHANGE : QEC

Questerre Energy Corporation

November 12, 2007 00:15 ET

Questerre Announces Third Quarter Results

CALGARY, ALBERTA--(Marketwire - Nov. 12, 2007) - Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC) (OSLO:QEC) is pleased to announce its financial and operating results for the third quarter of 2007.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, "We had several major successes in the last three months that promise to make the next six months a very exciting time for our Company."

Highlights

- Spud A-8 Nahanni well, one of the largest wells to be drilled onshore Canada this year

- Successfully concluded negotiations to acquire over 80 square miles in the high profile Bakken/Torquay light oil play in Saskatchewan

- Forest Oil committed to test the Utica shale gas play on our Yamaska permits in Quebec

- Talisman commenced regional seismic acquisition program for multiple targets in Quebec

- Completed and tested the A-7 and B-3 wells for the Mattson horizon and placed A-7 on production at Beaver River

- Quarterly cash flow from operations increased to $2.41 million from $1.68 million in 2006

- Average daily production for the quarter increased 16% to 1,206 boe/d from 1,037 boe/d in 2006

Cash flow from operations for the quarter ended September 30, 2007 grew to $2.41 million from $1.68 million in the third quarter of 2006. The increase represents the higher production and lower expenses, offset by lower realized gas prices. Year to date, the Company generated $8.64 million in cash flow as compared to $3.01 million in 2006. The Company's working capital position at the end of the quarter was $26.48 million (2006: $8.74 million).

Questerre reported a net loss for the third quarter of $0.68 million (2006: $1.96 million) and for the nine months ended September 30, 2007 reported net earnings of $1.1 million (2006: $0.29 million). The net earnings in 2007 primarily represent the gain on the payment received from Transeuro to complete its earn-in obligations at Beaver River in the second quarter. In 2006, the net earnings represent a future tax recovery to offset the deferred tax liability associated with a flow-through share issuance completed in the year.

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, 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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