Questerre Energy Corporation

Questerre Energy Corporation

March 27, 2006 00:30 ET

Questerre Cases Oil Discovery in Vulcan

CALGARY, ALBERTA--(CCNMatthews - March 27, 2006) - Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSE:QEC)announced today that it has cased the 7-29 well in Vulcan as an oil discovery. Questerre has a 50% interest in the 7-29 well.

Based on the interpretation of the 3-D seismic survey and discussions with its partner, a total of 10 oil locations (5 net) are under consideration for drilling after spring break-up. In addition, construction has commenced on an oil production facility.

The 7-29 well will be completed and stimulated shortly. Due to spring break-up, test results are not expected until late spring. The test results from this well and the stimulation study underway will assist in evaluating whether this oil discovery is an extension of Questerre's existing Manville gas pool, where it has 1,000 boe per day of gas production behind pipe. In this case, there is a possibility that some or all of the gas production will be shut-in to assist recovery of the oil.

Michael Binnion, President and Chief Executive Officer, commented, "The results from our Vulcan drilling program continue to exceed our expectations. Based on 3-D seismic mapping, we believe the 7-29 well could be associated with a significant oil column. This discovery increases our inventory of development drilling locations as well as enhancing our reserve base."

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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