Questerre Energy Corporation

Questerre Energy Corporation

April 04, 2006 02:45 ET

Questerre Completes Corporate Acquisition

CALGARY, ALBERTA--(CCNMatthews - April 4, 2006) - Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSE:QEC) announced today that it has reached an agreement to acquire a private exploration and production company with land and production in Central Alberta adjacent to Questerre's existing assets.

The addition of these assets will establish Westlock as a new core area for Questerre.

Based on an independent reservoir engineering report (the "Report"), these assets have been assigned proved and probable reserves of 652,000 barrels of oil equivalent at December 31, 2005. The Report assigns an NPV-10 on an escalating basis of $13.81 million to these assets. Current production is approximately 227 boe per day comprised of 850 mcf per day of gas and 85 barrels per day of oil.

The assets include over approximately 16,640 (8,320 net) acres of land adjacent to the Company's existing acreage in this area. Questerre believes this acreage is highly prospective and expects to commence drilling on these lands by the summer of 2006.

The purchase price for these assets will be $3 million in cash, prior to any working capital adjustments, and 7,262,856 Common Shares of Questerre. The completion of this transaction is subject to receipt of all required approvals.

Michael Binnion, President and Chief Executive Officer, commented, "This acquisition is strategically important to Questerre. Drilling in the Westlock area is typically low cost with multiple horizons. This acquisition gives us a significant land position in the area where we see several drillable locations and potential for future growth."

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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