Questerre Energy Corporation
TSX : QEC
OSLO STOCK EXCHANGE : QEC

Questerre Energy Corporation

July 09, 2010 00:16 ET

Questerre Energy Corporation: Completion Operations Underway at Gentilly No. 2 Horizontal Well in Quebec

CALGARY, ALBERTA--(Marketwire - July 9, 2010) -

NOT FOR DISTRIBUTION ON U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC) (OSLO:QEC) announced today that completion operations began recently on the Gentilly No. 2 horizontal well in the St. Lawrence Lowlands, Québec.

The completion program for this well included testing of both the middle and lower intervals within the Utica shale formation with a total of five fracs in the approximately 700m long horizontal section. This will provide important technical information about the stimulation of these intervals. The fracture stimulation of Gentilly No. 2 will be conducted by Talisman Energy Inc. in accordance with good oilfield practice and government regulations.

Consistent with its previous operations, the adjacent vertical well, Gentilly No. 1, will be used for microseismic monitoring to validate the effectiveness of the fracs. Questerre believes this information will corroborate results from previous fracs. Based on independent analysis of the fracs on previous wells, the microseismic results to date clearly indicate that the fracture stimulation does not propagate above the Utica shale. The top of the Utica is located at least 1,500m from the deepest fresh water aquifer.

The long-term production test of the St. Edouard No. 1A horizontal well was recently completed. After 134 days of testing, the well was producing at a rate of approximately 1.4 MMcf/d. The pressure and production data is currently being analyzed in conjunction with the microseismic gathered during the fracture stimulation.

Drilling operations on the Fortierville No. 1 horizontal well were finalized in late June. The well was drilled and cased to a measured depth of 3390m including an approximate 1000 m horizontal leg. Due to frac equipment requirements and unforeseen changes at an adjacent location where Questerre is not a partner along with a prior commitment for the frac equipment in Western Canada, Questerre anticipates this well is likely to be completed in the fall when the frac equipment is expected to return to Québec.

Questerre also announced that drilling operations are underway on the next horizontal well, St. Gertrude No. 1, situated approximately 12 km southwest of the Gentilly No. 2 horizontal well. The well will test an unstructured area in the play fairway. Total measured depth for this well is programmed at 3300m with a 1000m horizontal leg into the middle Utica interval. Subject to final results, Questerre expects the completion will likely include an 8-stage fracture stimulation with results later this year.

Michael Binnion, President and Chief Executive Officer, commented, "We are very pleased that operations are progressing satisfactorily. The long-term test at St. Edouard is in line with our interpretation of this excellent first horizontal result. Drilling results from Fortierville showed progress on the learning curve and we look forward to applying it to St. Gertrude."

Questerre Energy Corporation is an independent energy company focused on shale gas in North America. The Company is concentrated on establishing commerciality of its Utica shale gas discovery in the St. Lawrence Lowlands, Québec. Questerre is committed to the economic development of its resources in an environmentally conscious and socially responsible manner.

This news release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including the results from our horizontal wells, the estimated recovery of resources and the timing of completion operations. Although the Company believes that the expectations reflected in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information available to the Company. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking statements. As such, readers are cautioned not to place undue reliance on the forward looking statements, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

This news release does not constitute an offer of securities for sale in the United States. These securities may not be offered or sold in the United States absent registration or an available exemption from registration under the United States Securities Act of 1933, as amended.

Contact Information

  • Questerre Energy Corporation
    Anela Dido
    Investor Relations
    (403) 777-1185
    (403) 777-1578 (FAX)
    info@questerre.com