Questerre Energy Corporation

Questerre Energy Corporation

October 26, 2006 00:15 ET

Questerre Energy Corporation: Beaver River Well Enters Target Zone

CALGARY, ALBERTA--(CCNMatthews - Oct. 26, 2006) - Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSE:QEC) announced today that the Beaver River A-7 well encountered the top of the target Mattson/Besa River horizon on prognosis.

The A-7 well is being drilled to appraise the A-2 discovery currently producing 3.5 mmcf/d gross (583 boe/d) on a restricted basis from this Mattson/Besa River horizon. The well has an estimated AOF between 5 mmcf/d (833 boe/d) to 6 mmcf/d (1,000 boe/d). Based on core analysis of a Beaver River well by an independent service firm, CBM Solutions Inc., the gas in place for the Besa River shale is estimated to range between 200 Bcf to 495 Bcf per section. Questerre believes that test results from the A-7 well will further corroborate these gas in place estimates.

The A-7 well is being drilled with the Norwegian designed and built RAPAD 300K rig. The rig was developed in co-ordination with High Arctic Energy Services LLP and built by Sense EDM AS based in Stavanger, Norway. Adapted from offshore drilling technology, this rig's small footprint and automated systems are well suited for remote locations such as the Beaver River Field.

Intermediate casing has been set on the A-7 well at 1153m after drilling the upper Mattson sequence of sand, chert, pyrite and shale. Gas shows were observed while drilling through the shale sections of this shallow sequence. The drilling contractor reported that progress through this intermediate section took longer than expected due to low penetration rate through the hard abrasive formations and other operating challenges. Drilling will continue through this 800m thick target zone of interbedded sandstone, siltstone and shale over the next few weeks to a planned total depth of 2083m.

Plans are underway to commence drilling on the next Mattson/Besa River well in the program, the B-36-K/94-N-16 ("B-3") well. Lease construction for the B-3 well was completed late last month. The prospective intervals on both the A-7 and B-3 well will be fracture stimulated and tested when the hydraulic fracturing equipment can be mobilized to the Field in early 2007.

Michael Binnion, President and Chief Executive Officer, commented, "I am very pleased with the progress made on this well. A-7 could open up an untapped resource play at Beaver River. Depending on the results from this well, we see the potential to drill up to 50 wells for this play on 1/4 section spacing."

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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