Questerre Energy Corporation

Questerre Energy Corporation

March 27, 2007 00:15 ET

Questerre Energy Corporation: B-3 Well Reaches Target Depth Under Budget

CALGARY, ALBERTA--(CCNMatthews - March 27, 2007) - Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC) (OSE:QEC) and Transeuro Energy Corp. ("Transeuro") are pleased to announce the completion of drilling operations on the B-3 well at the Beaver River Field.

The well was drilled ahead of schedule and under budget. It represents the best time performance of any well drilled in the immediate area to date.

Operations on the B-3 well commenced at the end of January 2007. The B-3 well was initially drilled vertically and intermediate casing set at a depth of 1467m. Drilling operations continued directionally to a measured depth of 2115m. Numerous gas shows were encountered while drilling. The well is currently being logged and sidewall cores extracted from several prospective intervals prior to setting production casing later this week. Completion and testing will be carried out this summer.

The B-3 well was drilled to delineate the shallow Mattson/Besa River horizon in the southern part of the Field. Questerre and Transeuro each hold a 50% interest in this well. A joint venture operating committee managed operations with Questerre appointed as the named operator.

Michael Binnion, President and Chief Executive Officer of Questerre, reported, "We are very pleased to have drilled the pace setter well for this area. Total drilling and casing costs for this well are estimated at $5.5 million that is $1 million less than AFE. We expect strict management of drilling costs will contribute to even better results on future wells."

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.

Transeuro Energy Corp. is involved in the acquisition of petroleum and natural gas rights, the exploration for, and development and production of crude oil, condensate and natural gas. The Company's properties are located in Canada, Armenia, Papua New Guinea and Ukraine.

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.

Barrel of oil equivalent ("boe") amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel and is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead.

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